Auction business of China with my own eyes and ears. Impressions from a trip to the international conference of the Chinese Association of auctioneers

that we all-таки fly to a conference in China, we found out three days before departure. Why you had to bring a common set of common ideas and concerns about China in General and her business acumen in particular.

what we hear about China? By 2020 the Chinese economy will probably be released first in world, surpassing the us. Chinese investors, to the displeasure of impoverished Muscovites, actively buying depreciating luxury apartments-класса in Central and South-западе capital. What they are buying shares in our oil and gas fields. Chinese Cainiao, a member of the Alibaba Group (it gives 70% of all parcels in China), opens a representative office in Russia. And only one thought about it stand on end the hair of our entire e-Commerce. And we are not to know, but we feel that the worse relations with the West, the more the Chinese model (control over ideology and freedoms regulated capitalism) interest in our summit.

if so, then it would be good to see, whatever the Chinese.

is Already in the plane on the ancient city of Xian, we opened Global Chinese Art Auction Market Report 2015, and began to learn the materiel. This statistic report of Chinese art auctions for the year 2015 was prepared jointly by the German artnet and the China Assosiation of of Auctioneers (CAA) — the Chinese Association of auctioneers*, which we were invited to their first conference auction houses.

And the figures in their report were Oh how informative.

In particular, the authors were forced to state with regret that in 2015 the domestic auction market in mainland China in the segment of the art after several years of growth, experienced a period of cooling. Sales for the year fell as much as 19 %. Right up to... $4 400 000 000. No, zero we're not wrong. Yes, it's almost 1,000 times greater than the volume of sales in the domestic auction market in Russia in 2015. Then it was $4 600 000. In the ill-fated 2015-м the number of auction houses in China has also decreased. How much? Dramatic — by as much as 18 pieces. And there are only 274 of the auction house. In Russia in this time, houses, in turn, was 9, and only 7 of them specialized in the sale of painting and drawing. Total relationship potential with China in 2015 formally looked like this: they have 30 times more auctions and 1 000 times more volume in dollars. Even if the stats are very disingenuous, anyway, it was clear that to fly we were in a giant auction the den of debauchery. Where things are going so well that the Chinese head of the China Guardian auction in this year became the biggest share owner "Sotheby's".

Well, nothing to do, silenced fly. The road is hard, almost a day in planes and airports.

In XI'an, the Chinese was also excellent. To start reassured that masks all around are not from-за bird flu, and-за ecology. Could. Said that to live we have almost the starting point of the silk road — in the Western market. Warned that Facebook and Gmail, we now do not have until the end of the trip will be. That in two days we will see the army of terracotta warriors, but the next morning we have to withstand the onslaught of the army of the Chinese auctioneers who gathered on 1-ю conference CAA.

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Morning. Could. Group of athletes doing martial arts on any free sites. Luxurious meeting-зал of the Museum from the Tang dynasty. Sun, holiday decorations, and platform. Looked around: where the owners of successful auction houses? Where auctioneers-миллионеры? Businessmen gathered really serious level: Vice-президент leading Chinese auction China Guardian, CEO of Beijing Huachen Auctions, people from Poly Auctions, the Chairman of the Board of Directors of the Yellow River Culture Industry, a representative of the Shanghai Duoyunxuan Auctions, Director of many Chinese and Taiwanese auctions. We have such people can often be identified even in appearance — pompous, unapproachable, surrounded by a retinue of aides. But not here. All dressed alike, strictly and modestly. Contact, smiling, no snobbery. Quiet tone, quiet talk (and the Chinese at home is usually very loud). Unusual. Not like in the movies.

Soon began. About 200 participants of the conference took their places. Sounded welcome, and the podium began to leave dear people.

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And who, think you, respected people to the Chinese leaders of the auction business? Industry leaders? Innovative entrepreneurs? Local Gref and chichvarkina? Possible, Yes, but the podium they were not invited. Because the more respectable people in China — officials of the Federal and municipal level. And they came. Not one, but several. In particular, was a former member of the state Council, China's Howe Yuin Chun — is generally a figure of the highest rank, which caught every word. The truth is, it is difficult for us to judge what you really think businessmen when officials tell them how to responsibly conduct business. While not the same relationship. But officials listening reverently, "no smeshochki or howl". Despite the fact that each spoke for forty minutes, and even more hours. And all this time, quiet as at the theater, no talking, no walking around the room, not as we do. We-то could easily have a word (under the guise of an interpreter), and the neighbors — no. What is said from the stands?

That "the Israeli military is known throughout the world"? Only partly. Talked about the growing gap between the rich and the poor, about the risks of the third economic crisis. But at the forefront of political discourse in China, of course, is a casus trump. The US President-elect is known for the fact that he wants it all back. But first and foremost to bring back jobs from China to America. This is a threat to the Chinese is taken very seriously. The list of threats — economic instability in the countries of the BRICS and neighbouring countries. "Finally-то our role said about our crisis would be to say," — we thought. It was again a talking not about us. And India, where the rupee shakes, and other countries in Asia-тихоокеанского region. In General, in the majortrading partners of China, our country is 16-е place. With Holland and Brazil, China's trade volume in dollars more than with Russia. And, for example, with a rebellious Taiwan — is much more. So we shouldn't have worried.

by the Way, about Taiwan. According to reports in the media, we have the impression that with the island Republic from mainland China, violent confrontations. Here recently there was another diplomatic scandal, when trump talked on the phone with the President of Taiwan, causing displeasure China. Still, remember? Imagine our surprise when on the left hand of us we saw the Chairman of the Taiwanese auction house Yu Jen International as a distinguished guest of the conference. And the list of speakers at the panel discussion found of the Secretary-General of the Taiwan Association of art galleries and the permanent under Secretary of the Taiwan Association of collectors. Ask, how so? Side because sounds like "a delegation of businessmen of the Crimea conference in Kiev" — bizarre. It turns out that politics and business separate. Political rhetoric —, Yes, but tense. And in business island of Taiwan with mainland China cooperation is developing actively, and certainly not condemned. And the trade they have three times more than us. Without any oil-роснефти. So, as mentioned Zhvanetsky, congratulate yourself.

Well, to hell with politics. Talked to the tribune about the auction business? And you said that the auction industry of China has developed too quickly, all the lads, but now we need to pay more attention to the quality of business-процессов. As we understand from the translation, called the auction house to build up equity, to respond to changes in the legislative framework. But most importantly, talking about all the officials — it calls for to develop online-направление in the auction trade. That is, away from the traditional model and harder to pounce on the Internet. An important signal. Along with the development of exports. The leitmotif of all performances: the business need to trade in all export directions — and the West, with the East and South. And the government is ready to provide businesses with all the necessary assistance.

And it is the desire of the Chinese state to help your business with exporting, perhaps, is the main threat to us in the context of competition with China. We fully believe that their officials would not interfere with their auctions to trade with Russia. As I believe that our officials, on the contrary, creates and will create problems. And that has happened. The business associated with the sale of paintings abroad, stood stupidly a few months ago. In order to make the export of paintings sold in China (or even overseas), the buyer must personally or by a notarized power of attorney to apply for export, to pay for the examination, to pay a tariff on prices, the designated official (potentially much too high). Before all the headache for clearance of export assumed by specialized firms. Conveniently and efficiently. Now also help. But became uncomfortable, and for many foreign buyers is simply unacceptable. The buyer now needs the most to spend a lot of time and money involved in the matter personally. Formally, these innovations as-то to explain, but in fact, this means stop all sales. What weobserved. Why buy online from-за of the turn, if you take will have to go to distant Russia, there is still the offices of the paper to collect? Foreign buyers to mock him will not allow. All the buzz online-покупок to lose — consequently, the export stops, and Russian sellers suffer losses. But who cares about that? Who cares what under the pretext of going on downright sabotage? For stopping the whole export direction it will never be answered — is understandable. As it is clear that the other officials are no spies and saboteurs are no longer needed.

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Back. After the podium presentations went profile panel discussions. "And how do you have taxes? High?" — ask the Chinese. "Yes, not a tax problem, — are talking about. — the Problem with economic activity, with restrictions on the import and export". — "in General, — asking — as a business in Russia?" — "Great, — are talking about. — for the second crisis experience over 8 years." Why? Out next speaker is the Deputy cultural attaché of the French Embassy. Ask them why the sanctions imposed. But we gradually adapted. The ruble has fallen, the prices of paintings in dollars also decreased two times. That is the time to buy has come optimal if you believe in the imminent improvement of the General economic situation. But I believe not much, so the queue for the paintings are not. In the end, the Chinese come, I ask (and I quote): "How to buy art in Russia?" What's the answer? The truth that you can buy without problems, and take for-человечески in any way? That the export was blocked by saboteurs? Here is the answer to all questions.

Quietly (here lies, of course, no longer had) the evening came. Dinner without alcohol. On the concert without alcohol. And then never rested public were invited to participate a charity auction. Then we had originally decided skeptical. Swam — know. Charity auction need to hold after careful preparation. You probably need to explain who a lot will buy, and so on. Without this charity auction risks becoming a disgrace. And in the Chinese version, too, all went to the fact. Imagine sitting 200 tired people, all sober, nothing you need, starting price on our money 70 000-150 000. It is 10 000, and better 1 000. Well, who here would buy? Foredoomed event.

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we why-то and said their Chinese partners (who pulled-то for language, even though sober). "Nothing so Makar, you can not leave. Starts should be minimal — 100 yuan and not 7 000. But first buyers need to assign in advance. In Russia, we would have done the same". And the gloomy predictions was quickly realized. For sale made a figure. Start 70 000. In the hall of silence, interest — zero.Pause. Then start persuasion (against which we warn beginners of auctioneers). Finally making a bet conference speaker and bad-бедно saves the day. Once helped, but it is clear that so then it will not work. And then the Chinese entered the battle reserves. To the rear of the hall, to help the main facilitator came two more of the auctioneer and started the cross fire. Auction bid from three people, and it worked. Disappeared an awkward pause, began joke. "Kamchatka" from the far tables, which had previously had all the chances to escape from the attention, fell under the microphones is the leading. At the same time, the Chinese realized prices. Is 7,000 yuan (70 000 rubles) starts lowered to 1,000 yuan (10 000), there was bargaining, and reached 40 000. And even more. Slowly the hall stirred up, Torg went more quickly, almost all the lots sold. Well done. You made a mistake, the Chinese have rebuilt and corrected the situation. Well, a diagram of the three leading and does can be safely shake their heads. For large audiences it has shown high efficiency. And we have I have never seen.

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It's time to take stock.

How fair our fears of the expansion of Chinese business in our market? How many of us think? The question is difficult to understand that three days is impossible. But to share experiences can. There are several:

1. We were left with the impression that the issue of cooperation with Russia is in the first place. Rather, 16-м, in accordance with the volume of trade. On the way back the plane was carefully reading the paper: what you write about Russian. Here themes China: the problem of the trump, local poverty, local elders, government strategy solutions to environmental problems by the year 2020, the epidemic of avian influenza in ducks in the Netherlands, the situation in Aleppo (block 5 × 10 cm with no mention of Russia at all), papolos about Rosberg, the issue of sexual slavery in the United States, "energy poverty" in Spain, a Palestinian rap in Israel. A total of 24 bands — anything about Putin or about Russia. Maybe too much today, but it is what it is, were not selected.

2. We China live in similar economic and technological eras (there is no such gap, as with Japan). We have now generally all very similar. Price in Chinese stores — Moscow, real estate in most major cities — in the neighborhood of $1000 per square, machine around one million rubles, salaries are 30 000-60 000 rubles per month. Where-то better (business activity), where-то worse (service, environment, traffic). It is clear superiority is not felt.

3. Chinese — is a very determined, capable of rapid mobilization. But the rest are ordinary people, with normal level of competence, not superior to us neither in education nor in what-то phenomenal personal qualities. With the mentality, too, can learn to cope.

4. One of the most serious problems is the language barrier. English will not help us. However, the Chinese around the world work — so, we will be really able to cooperate and compete.

On the auction business, first impressions are overall quite similar.

5. There is no feeling that the Chinese will be able to quickly and successfullyto compete in our market due to improved business-процессов (i.e. technology). Here we can feel confident. Yet. And due to the proprietary Chinese reception — injection of cash into the business — to compete with us will not work: lack of money on our auction market no. Bottlenecks Russian market — is a shortage of quality supply, restrictions on import and export and some others. But not the money. If any Russian auction to inject $ 10 million, its efficiency will not increase excessively.

6. In traditional auctions of reference, the Chinese are not simpletons. Any of the Russian auctions exactly odds to give the ability to stir hall — even at the charity auction it was clear. However, in Russia the auctions in the hall, full-time, have already come to a close. And coming online levels the playing field.

7. Despite the apparent success in this business, the Chinese have also not without difficulties. They complain about high taxes (we heard about 47 %), unscrupulous buyers-неплательщиков, say "cooling" in the auction sector.

8. The reliability of Chinese statistics, despite impressive numbers (4.4 billion in auction sales in 2015), should not be overestimated. In particular, I was struck by one question in the margins: "how ARTinvestment.RU ensures the credibility of your Analytics? Why do you believe?" And add: China's own measurements trust as-то not. We thought so. By the way, we also can't fit it in my head as a work of the living head of the Chinese national Academy of arts can cost $39 million? As a masterpiece of Modigliani. In other words, a giant statistical superiority should not be a burden.

9. What the Chinese have to keep it a positive emotional attitude. Work with a smile, confidently, loudly — we have since been made. Maybe this is their secret weapon? At least one of.

it Remains to find the answer to the main question: what do all-таки take the Chinese? Why do they manage to quiet expansion why their business is growing? Due to what? This is something that we puzzled all the way home. Answer we have. But there is a hypothesis. It seemed to us that the authority of the government and the credibility level of the business in China is quite high. Why would it not be? The state does not interfere with the business, in fact, creates the conditions for its export orientation. And then everything gradually happens by itself: the business is gradually adjusted, the standard of living increases. And here it turns out that it is not necessary to be seven spans in a forehead and to have some-то particular superiority, to properly develop economically. Importantly, the system was built without tyranny. To spokes in the wheels are inserted. In this, perhaps, is today the main Chinese secret.

on behalf of the ARTinvestment.RU and myself, I thank the Chinese Association of auctioneers (CAA) for the invitation and the excellent organization of the trip to the conference.

Vladimir Bogdanov, AI
Konstantin Babulin, AI
Photos of the authors

This is what was in the case. And the unofficial "bad egg notes" on China, local Internet, food and all for a better life read in Facebook Konstantin Babulin and Vladimir Bogdanov.

* Chinese Association of auctioneers (The China Association of Auctioneers) was established in 1995. Today it isthe only national Association in the auction industry. The Association is involved in the regulation and supervision of the activities of auction houses in accordance with the auction law of the PRC (Auction Law of PRC). In the task list CAA —, the development of international relations of the Chinese auction houses, strengthening the export potential of the Chinese auction industry.