Where art meets luxury shopping

  At the inauguration of the K11 art space in Shanghai last Friday, a middle-aged couple standing with tanned skin and gold teeth before installing a cascade of several million tightening their ears with their hands, face grimaced as if in pain.

A musical and multimedia 45 minutes Japanese electro-acoustic artist Ryoji Ikeda, with his sharp and frenetic lights flickering black and white techno beats, patience and torque tested hearing.

"Sound Art is very avant-garde," Adrian Cheng, president and K11 art lover said earlier in the day. "This is very new."

It is the business proposal K11 marry detail in art. Mr. Cheng, who is also the managing director of the Hong Kong-based New World Development Co. Ltd. 0017.HK +0.76% and Chow Tai Fook Jewellery Group Ltd. 1929.HK 1.54% planning, 19 of these centers build integration through commercial art

Mr. Cheng, 33, and already one of the richest men in the world by assets, is bullish, its new retail concept at a time when the economy of China is getting slower and an ominous shadow in the form of austerity more luxury consumption form.

Punishment of Luxury gift among government officials will affect sales, he said, but he warned of the luxury market in China is complex and tries to ensure that it stays. Shanghai flagship tenant K11 elegant Huaihai Road include Burberry, Max Mara, Armani watches and life concept store design Chinese designers Wang Yang Yaang.

"Luxury is very complicated," Cheng, who is the grandson of Hong Kong tycoon Cheng Yu-teng said.

"The market has the biggest hit is nothing special, but the side of the luxury or premium class," he said, adding that "affordable luxury" is good for ultra-luxury items -. Prices above 20,000 yuan ($ 3,200) - and luxury items at an average price of about 3,000 yuan are resilient, he says, but between the two, things "hurt a bit.".

However, he said that some brands, even in this area can be a good performance when they differentiate themselves from others or have strong personalities.

"Lifestyle and value added for the customer is the key to success, too," Cheng said.

Mr. Cheng, whose family owns a chain of Ferrari dealers in China, said that the cars an example of resilience ultra-luxury Ferarri Several models have a waiting list in China, because the demand for them is so high.

"Ferrari is a little different because it is a very niche market," he said.

The global impact of the economic slowdown in China and led by government austerity measures is not so important for shopping centers such as K11, Cheng said.

"Disposable income actually increases. People want to go to physical stores to communicate, connect, and build community," Cheng said. "It's just that you more sensitive to the price point for the sake of humor."

Mr. Cheng said that this has been reflected since its soft opening in January in the performance of K11. "The restaurants in the mall are packed every night," he said. The Mall will officially open its doors next month.

Some analysts warn against excessive expansion in the luxury segment and note that some segments of the luxury goods such as watches and spirits industry has been hard hit China. However, the Chinese middle class, things like handbags and jewelry always provide long-term growth for luxury makers want, said Aaron Fischer, an analyst at brokerage CLSA Asia Pacific Markets.

Next step in the deployment plan of Mr. Cheng Shenyang, a city in the north of China is experiencing an oversupply of retail space.

But again, Mr. Cheng is bullish: "We have 260,000 square feet of gross floor area of ​​work," Mr. Cheng said on Friday, wearing a blue coat Fashion Burberry trench, mustard pants and sports shoes. "We are the largest (center) in the northeastern region," he said.

Dedicated to the official start of the art commercial center of Shanghai area hope Mr Cheng is that most consumers to combine shipping costs with commercial art. The opening exhibition features 26 works by Chinese and foreign artists, to July and is entitled "Truth, Beauty, Freedom, and Money" - more melodic themes, perhaps, Chinese ears.