SWOT Analysis On Artwork Auction Industry In China

In Oct, 1992, with the support and instruction of Beijing Cultural Relics Bureau, Beijing auction market held an international artwork auction which was the first time attempt since 1950s in the mainland of China. During the following 15 years, China's artwork auction industry develops very quickly. The investment of art works, finance and real estate investment are recognized as the most important investment channels. Until 2006, the number of registered auctioneer of China was 7218, and the total sale proceeds per year were 15 billion yuan. The artwork auction industry has obtained the unprecedented development.But comparing with the rapid development, the artwork auction industry also meets some obstacles and problems. Adopting SWOT analysis matrix, this issue try to make an overall analysis on the inner and outer factors affecting the development of China's artwork auction industry, and put forward the development stratagem, which is establishing bellwether company and industrial clusters through adopting specialized operation.After the SWOT matrix analysis, this issue advances the policy implication and suggestions for promoting the development of China's artwork auction industry from three aspects. From the government aspect, the policy guidance and institution construction are very important. The artwork auction will benefit a lot from the free development environment and scientific policy support; From the CAA (China Association of Auctioneers) aspect, promotion and administration are CAA's mainly responsibilities. From the company aspect, they need to build up a reputation for sound character or quality, focus on their target market, perfect the marketing channel and strengthen the propaganda work. All these efforts will help to improve industrial competitive capacity, participate in the global competition and accelerate industry development.In additional, this issue applies Michael E. Porter's"diamond theory"to analyze the inner factors affecting the development of China's artwork auction industry. This issue's creative point lies on the effective combination of SWOT analysis matrix and"diamond theory".