China Daily, 2005-09-05
Artistic value
LIU WEILING

Famed pop artist Andy Warhol directed the world's attention to the bridge between art and commerce. This is something that Zhang Yu clearly understands.

Culture as an industry can observe the same market principles of any other sector, says the president of China Arts & Entertainment Group, one of China's largest performance intermediary agencies.

"We produce and we sell. The target is simple - to sell as many products as possible."

That means marketing and branding are as important to China's cultural enterprises as they are for companies like TV manufacturers, Zhang says.

He has been advocating these concepts and practices in China's cultural industry for years, which might be one of the last sectors in the country to embrace the market economy.

China finally initiated market-oriented reforms for its cultural institutions at the end of 2003, years after manufacturing and service companies learned how to thrive in a market economy.

The government selected 35 organizations, mainly theatres and theatrical troupes, to pilot reforms that will transform them from government-backed institutions into modern enterprises responsible for their own profits and losses. Zhang's group, then named China Performing Art Agents, was the only intermediary agency on the list.

The move came at a time when the country's performance market was struggling and a number of troupes were on the verge of folding due to low public interest.

"The toughest part of reforms was to change the way we worked," Zhang says.

"Everybody had to realize they were working at a company, and the companies had to adopt market practices."

Many theatre directors, accustomed to decades of developing government-subsidized programmes, are unfamiliar with terms like marketing, promotion, and branding.

Many theatrical troupes still don't even employ marketing specialists.

"We have directors, designers, actors, and all kinds of people in charge of music, lights, and costumes... but where are the sales people?" asks Zhang.

The number of new performances developed every year by Chinese troupes is equal to the combined world total. Many programmes can only be staged a couple of times. However, some shows never even get the chance to be performed in front of an audience.

"With nobody understanding market and audience, how can they produce a hit?" Zhang asks.

"Anything that actually ends up being commercially successful is just lucky."

The potential is there. The famous Irish dance troupe Riverdance, which is celebrating its 10th anniversary this year, had performed in 205 cities by 2003. It had been seen by more than 16 million people worldwide and more than 1.5 billion television viewers in its first eight years.

Riverdance's success may be forever out of reach for domestic troupes. Chinese performers should instead focus on familiarizing themselves with the rules of the market.

Zhang suggests that half of a troupe's staff should be devoted to marketing. Sales people should also be involved from the very beginning of the production process, rather than just at the end.

Zhang visited Guangxi Zhuang Autonomous Region last year. Numerous local directors and troupes asked him to introduce their performances to a bigger market. Zhang told them they were too late.

"The marketing people need to be there at the beginning to understand the performance. You have to know something in order to sell it to an audience."

He is not only good at advocating. Zhang practices what he preaches.

Even a decade ago, theatregoers could only buy tickets to a performance directly from the theatre. Zhang established a company in 1993 to sell tickets for all kinds of performances in places such as shopping centres. It also provided door-to-door services.

Twelve years later, the company has become the biggest ticket vendor in Beijing, with sales revenue reaching 180 million yuan (US$22 million) last year, more than half of the total in the city's performance market.

Zhang's company is truly putting his methods to the test with its upcoming acrobatic show "Era - Intersection of Time," which will debut in Shanghai on September 27. Pre-marketing started from the moment when it was decided to launch the project, he says.

Now, almost one month before the premiere, banners decorate the streets and advertisements reach every corner of the city on buses. The show enjoys daily TV news coverage as well.

The company has also developed an overseas promotional strategy with co-operating travel agencies. A 300-member delegation of Canadian entrepreneurs, headed by a Quebecois politician, has booked tickets.

Zhang says the marketing effort is so exhaustive that even before the management team considered how to train actors, they discussed how to teach sales skills to hundreds of ordinary staff, including ticket sellers, ushers, and even security guards.

"They should love the show, be ready to answer any questions, and create a pleasant atmosphere in the Shanghai Circus World where the show is to be staged," Zhang says.

The name of the show was also determined by commercial considerations, Zhang says.

"Era is a simple word, easy to remember. More importantly, it is easy to print on T-shirts, ties, and other souvenirs."

Pre-marketing is not the only market practice Zhang has introduced to China's arts industry. He even set up a specialized company to produce and market the show.

Shanghai Circus World and Zhang's Shanghai Media Group each invested 10 million yuan (US$1.23 million) to launch the Shanghai Era Arts and Entertainment Co.

"This company will only run this project and will be closed once it finishes," he says.

"It might be the first project-oriented company in China's performance market."

Most performances in the past were produced by troupes, while intermediary agencies like Zhang's China Arts and Entertainment Group were responsible for marketing them.

Zhang says the advantage of a project-specific company is that it can adopt real market practices and utilize resources both domestically and globally.

This time, the company invited famous Canadian director Debra Brown to be the general director of the show. Other key members on the production team are also experienced foreign professionals, including light, music and multimedia designers.

Zhang says that one-third of the investment has been used to pay foreign participants, who also enjoy options on future revenues.

Acting contracts are determined by the importance of the roles.

"Our current target is to make it a long-term show that can be performed up to 2010," Zhang says.

"Then we will sell it internationally."

The company owns the brand and other intellectual property rights. If the show is successful, it can develop other products based on that, he adds.

Project-oriented companies are common in the global performance market. Companies produce programmes rather than troupes. Time Warner, Disney and Canada's Cirque du Soleil are successful examples.

Zhang says this is where the Chinese market is heading. He plans to use specialized companies to run all of his future projects, even in co-operation with foreign partners.

Zhang's group is in talks with a leading South Korean entertainment company to launch a joint venture that will sell Asian-style performances in the European and US markets.
(China Daily 09/05/2005 page12)

http://www.chinadaily.com.cn/english/doc/2005-09/05/content_475023.htm

 

 

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