Architectural creativity an opportunity.

Areas such as design in research and development and architectural works, as well culture, media and consultation are being presented by Shanghai as new creative opportunities to bring investment to the city - and Hong Kong has a definite place to play.

The strategy embraces restructuring and upgrading of the open coastal economies. These fast-developing regions are high value-added ones, with creative industries included.

Cities like Beijing, Shenzhen and Hangzhou are all implementing strategies to promote the development of creative industries. But the central government has not been able to formulate unified policies and classification guidelines that are all-embracing.

Shanghai put forward the idea of developing creative industries in early 2005. As the economically most vibrant metropolis on the mainland, Shanghai is faced with the challenge of having to change its mode of economic growth and urban development, increase its comprehensive service functions and upgrade its industrial structure.

Since the 1990s, Shanghai's traditional industries have gradually been relocated away from the city, leaving plenty of old factory premises and industrial areas. In a sense, there is an industrial void in the city waiting to be filled.

Filling the void.

Spatial art.

Under the circumstances, the Shanghai government has been exploring new urban development paths - involving creative ones - to tap idle fixed assets and introduce new modes of industry. In the course of this development, creative industries have gone from the stage of urban manufacturing and industry to the present state.

With per-capita GDP exceeding US$5,000, Shanghai now has the basic economic conditions necessary for the development of creative industries.

Also, Shanghai has a more relaxed and open social environment than other mainland cities and has developed its unique cultural ambience. It assimilates the cultural elements of different parts of the world to provide favourable soil for the development of creative industries.

Creative clusters in situ

Clustering is one of the characteristics of Shanghai's creative industries, which began as private sector initiatives before guidance was given by the government. It refers to the geographical concentration of enterprises and institutions of related industries, which increases their competitive edge and economies of scale.

Housed in old factory premises in industrial areas, creative companies in particular fields come together under government guidance. These clusters provide a platform for similar creative companies to exchange experience, carry out brain-storming sessions and hopefully achieve industrial value-added and brand effect.

The 18 existing creative industry clusters in Shanghai cover a total area of about 32.5 hectares and have a combined floor area of 410,000 sqm. Another 16 are under construction or refurbishment, which cover a total area of some 43 hectares and have a combined floor area of 630,000 sqm.

Some 800 creative and design companies from more than 30 countries and regions, including the US, Japan, Belgium, France, Singapore and Italy, have set up business in these creative industry clusters.

Creative designs from Japan.

Italian exhibits.

Creative industries cover four major areas: creative design relating to culture, such as web media, lifestyle art, TV and film production and animations production; creative design relating to industry and architecture, such as industrial design, interior decoration and architectural design; creative design relating to consumption, such as lifestyle design, fashion design and advertising; and creative design relating to tradition, such as arts and craft design.

Creative industries in Shanghai are just at the initial stage and are confronted with all kinds of challenges posed by the less-than-perfect legal environment, upon which their healthy growth depends.

Although Shanghai has a market environment that appeals to creative personnel, they are still hard to find. The city lacks creative people with leadership capability, talent with lots of creative ideas and creative professional managers.

Government policy in play

Shanghai's government has clearly identified the development of creative industries as one of its priorities during the 11th Five-Year Plan period and has started to formulate development plans for these industries during the five-year period to provide them with all-round policy guidance and rules to follow.

The city's Creative Industries Centre, as a trade organisation under the Shanghai Economic Commission, is fully responsible for coordinating and promoting the development of these industries.

In order to strengthen IPR protection, which is crucial for the development of creative industries, the Shanghai government is actively making preparations for the establishment of the Shanghai IPR Centre, which is due to open before the end of 2006. The government will also set up a special fund to support the development of really creative industries.

Creative expo exhibit.

Expo exhibition hall.

The local government held the Shanghai International Creative Industry Week, the first of its kind on the mainland, from 30th November to 6th December 2005. Activities included the Shanghai International Creative Industry Forum, the Shanghai International Creative Industry Expo and the Shanghai International Creative Industry Design Competition.

Italy, France, the UK, Holland included creative works from their artists. After inspecting the creative industries in Shanghai, UNESCO decided to appoint the Shanghai municipal government as the sponsor of the 2007 World Creative Industries Expo, which promises to be an event to look forward to.

Based on the city's development requirements and national trade classification standards and drawing on the statistical classification standards of developed countries, Shanghai has managed to identify the priorities and directions for the future development of its creative industries.

Dutch pavilion.

The five major creative industries include R&D design, which are activities related to industrial production and computer software and forms the core of Shanghai's creative industries. It covers 10 medium categories, including industrial design, software design, fashion design and product design, and 21 small categories.

Architectural design, another new area of interest, refers to design activities relating to construction and the environment and includes the three medium categories of building decoration, interior design and urban landscaping, together with several small categories.

Culture and media refer to creation and dissemination in the fields of culture and art - covering nine categories, including creative performance, radio, TV and film production, as well as audio-visual production.

Consultation and planning represent another creative goal. This refers to the provision of consultation and planning services in business, investment, education, lifestyle consumption and other areas relating to enterprises and individuals and cover nine medium categories, including market research, securities consultation and exhibition services.

Under lifestyle consumption, industries that embody creativity and its value in people's everyday consumption, livelihood and entertainment covers eight medium categories, including leisure sports, entertainment and games.

In 2004, these five creative industries generated Rmb49.3 billion (HK$47.4 billion) in value-added terms, about 6% of Shanghai's GDP.

Hong Kong opportunities stand out

Shanghai's fashion design.

The five major creative industries were chosen by Shanghai in the light of their own characteristics and their market development potential in the city. There are indeed reasons to be optimistic about the future prospects of these industries.

But there are still some bottlenecks to break through, especially in the areas of IPR protection, personnel training, market cultivation and commercialisation of research results. These are also areas that promise infinite business opportunities for Hong Kong companies.

Hong Kong is quite mature in product design, fashion, interior and graphic design opportunities. Manufacturing enterprises in the YRD have to build up their own name, increase the value-added of their products and promote their brands. Hong Kong companies may consider setting up branches in Shanghai or cooperating with mainland design companies to tap the mainland market.

China is coming into increasing conflicts with the world on IPR issues following the development of globalisation. Hong Kong's legal sector should have a role to play in this.

Brand management and consultation calls for professional consulting companies or brand rebuilding and management companies in Hong Kong, who may consider basing themselves in Shanghai to open up the burgeoning mainland market in order to sell their creative ideas.

from Wang Nan, Shanghai Office