Fresh thinking for decision makers

China's museums
are growing | But
need expertise | In
order to become
the cultural cores
of China's cities

Maximizing
the Value of

China's Museums
Museums throughout China are
experiencing growth on an unprecedented
scale, but they have a long way to
go before they are more than just
"landmarks." Strategic positioning and
operational efciency are key to becoming
exceptional cultural institutions of high
social and economic value.

China's Museums

Museums in China are undergoing widespread revitalization. Both privately operated and
government-run museums are being established and existing ones expanded to exhibit
growing collections of great cultural value. However, many museums struggle to dene and
position themselves in terms of economic and social value, failing to repurpose themselves
as anything other than extravagant landmarks lled with antiquities. Even those museums
that have established effective strategic positioning have yet to catch up to the sophisticated
operations of their peers overseas. Roland Berger identies the unique challenges
China's museums are facing and, together with French consultancy Artemisia, provides
recommendations for public and private museum operators on how to navigate strategic
positioning and museum operations in modern China.

Unprecedented Growth and Potential

Museums in China have experienced signicant growth in the new millennium. Improved
education, greater appreciation for art, and rising interest in cultural products have contributed
to the growing popularity of culture and arts venues such as museums.
Museum construction is booming. Since 2006, the number of new museums established
each year has grown annually by an average of 11%. At the end of 2011, there were 3,415
museums across China, ten times more than in 1978 prior to China's institution of "reform and
opening up" policies.
Museum collections are increasing. China's museums are expanding existing collections and
establishing new categories. In 2011, there were 19 million collections containing 50% more
items than in 2006.
Museums themselves are growing. Along with the collections they house, museum buildings
are also becoming larger. In 2006, the total physical footprint of museums increased at a
rate 19% faster than the rate at which new museums were established, indicating that new
museums are being built increasingly larger, which reects their renewed importance in China.
Despite booming growth, China still has very few museums in proportion to its urban
populations. (Fig.1) On average, there is one museum for every 550,000 urban residents. By
the end of the current 12th Five Year Plan, China expects to have one museum per 250,000
urban residents, but there will still remain a signicant gap between the urban museum
coverage capabilities in China versus in other countries. For example, Tokyo has one museum
for every 99,000 residents, while Tianjin, a city of similar size, has one museum for every
722,000 residents. Similarly, there are far more museums in Istanbul and Moscow, both large,
developing cities, than in comparably sized Chinese counterparts.

Fig.1Number of urban residents

per museum in major Chinese
cities vs. in other cities of
comparable size (Unit:'000)
Shanghai

853

Chongqing

780

Tianjin

722

Beijing

479

Istanbul

173

Moscow

139

Tokyo

99
Average in China: 550

Demographic, social, and economic trends will shape the future of museums in China. As
urbanization presses on, China's urban populations will explode as those in rural areas
diminish; by 2020, 60% of China's population will be urban residents, up from 51% today. These
changing demographics will affect the cultural core of urban China as older elements are
torn down and replaced with new ones. Urban residents are also becoming wealthier, better
educated, and acquiring a more internationalized, cosmopolitan aesthetic in their preference
for art, performance, and other cultural activities. In many ways, China is creating a new
culture that, while highly globalized and modern, is being combined with - and sometimes
overpowering-centuries of traditional art and culture; museums are a major playing eld
of this process. In addition, state-funded historical and archaeological research is on the
rise, funneling new resources into museum development. Increased government and public
support encourages the development of cultural, creative, and service industries, resulting
in a new wave of large public architectural projects such as museums, theaters, galleries, and
stadiums. Museums are ripe for rejuvenation and repositioning as cultural core of Chinese
society.

Fig. 2Chinese museums designed

by famous architects

Unprecedented Challenges
Although there are several indicators that point to a promising future for museums in China,
they face several challenges on the path to success.

Taiyuan
Archaeological
Museum

> Ancient culture of the Shanxi area

> Architect: Paul Andreu
> Construction began in 2008

The
Suzhou
Museum

> Ancient Chinese art

> Architect: I.M. Pei
> 2006

The
Ningbo
Museum

> History and culture of the Ningbo area

> Architect: Shu Wang
> 2008

CHALLENGE 1: Impressive Exteriors, Mundane Content

Architecturally, China's museums are becoming attractive projects for globally renowned
architects from globally renowned architects. The Suzhou Museum, for example, was designed
by American "master of modern architecture" I.M. Pei in 2006. Another Pritzker Prize winner,
Chinese architect Wang Shu, designed the Ningbo Museum, which opened in 2008. That same
year, construction began on the Taiyuan Archaeological Museum, which was designed by
French architect Paul Andreu, who is known for designing the Charles de Gaulle Airport in Paris.
Despite prestigious facades, most Chinese museums suffer from relatively sparse,
monotonous content and displays. Exhibit design and organization is outdated, lacking the
interactivity and information that can pique the interest of visitors. Content-wise, China's
museums are hardly comprehensive. The collections of public history and encyclopedic
museums currently contain 15.71 million pieces, averaging 100,000 pieces for every museum
above the provincial level. By contrast, the British Museum's permanent collection contains
over 8 million pieces, the equivalent of nearly half of China's national total. Paris's Muse du
Louvre has 4 million pieces, and the Metropolitan Museum of Art in New York City and the
State Hermitage Museum in St. Petersburg house 3 million pieces each. Not only are these
collections much larger than those of China's museums, but they cover wider geographic
and historical ranges. Collections in Chinese museums tend to be limited to ancient Chinese

China's Museums

artifacts, including ceramics, bronzeware and jadeware, coins, calligraphy, and traditional
paintings. By contrast, major museums abroad maintain massive collections containing
items of every era from all over the world; the Met's exhibits cover everything from classical
antiquities of Greece and Rome to Jackson Pollock. Although some Chinese museums do have
international collections and exhibitions, these tend to be the under the sole purview of a
handful of large, state-level museums.
Compounding the issue is China's current lack of effective acquisition channels, which
hampers their ability to acquire new collections and expand existing ones. Donations of
collections by private collectors are rare, and in the absence of strong connections between
museums and corporations, social entities, and the media, that mechanism is unlikely to be
strengthened. The collections that are donated rarely consist of very valuable or historically
signicant items. Of the new collections received by museums, only 5.8% are the top-tier,
highly valuable collections that draw visitors and inuence.

CHALLENGE 2: Rich Resources, Weak Research

Nationwide, new museums occupy an average footprint of 50,000 square meters and an
average investment of over RMB 1 billion per museum, but their visitor rates are fairly low. In
a recent survey of Shanghai residents, only 10.9% of respondents indicated that they would
opt to visit museums or galleries as a leisure activity; they ranked museums 22nd out of 36
total activity options. It might be concluded, therefore, that there is a disconnect at play in
which urban residents are unaware of the existence or value of museums. This is not to say
that residents are apathetic about museums and material culture, but that the public presence
of Chinese museums is weak. If in Shanghai, which is often regarded as China's cultural heart,
museums fail to register in the hearts and minds of residents, the outlook is decidedly dim
elsewhere in China.

Fig.3Museum segments in China

and their growth rates 20062010
Comprehensive

Occupy the largest volume in China and maintain

a steady growth rate

History

Have a signicant volume and a higher growth

rate compared to comprehensive museums

Art

Public

China may be ush with new, ambitious museums, but in addition to housing lackluster
collections, these museums, particularly public ones, lag behind their global peers in offering
educational programs and training, professional consultancy, and support for academic
research. Their failure to do so has resulted in a signicant disconnect between museums and
the public they purport to serve.

Are decreasing and have a pessimist outlook

Scientic
Have a relatively smaller volume,but are
increasing rapidly

Others

Private museums are increasing signicantly

and will play an important role in the future

Private

In contrast, museums in other parts of the world play an important role in the lifelong
education of the public. In the United States, 88% of museums offer education programs for
students from kindergarten to high school. In the past ve years, 70% of American museums
have reported increased services to both educators and students. Top museums and libraries
in the United States, particularly the Smithsonian Institute, actively participate in editing
and publishing academic works and organizing events and lectures. In many countries,
museums maintain close relationships with schools and universities and play an active role in
extracurricular education. Classrooms and multimedia rooms are available for such purposes.

In France, weekly museum visits are often an integral and compulsory part of primary and
middle school curricula. These services make museums an integral part of the lives and
educations of residents, a model that is largely absent in China.

Fig. 4Ma Weidu and the Guanfu

Museum

CHALLENGE 3: Huge Market, Few Qualied Players

China's demand for cultural and educational services is surging, as is the number of museums.
However, museums suffer from low visitation and utility rates. This is due, perhaps, to a lack
of dynamism in public museums and a scarcity of private ones. Private museums are more
likely to feel a nancial pinch from low visitation rates and therefore are more willing to explore
community activities and other methods to attract visitors. Although the number of privately
owned and operated museums has increased from 3 to 43 from 2005 to 2010, they only
account for 2% of China's total. By contrast, 58.6% of American museums are private, as are
over 60% of museums in the UK.
Insufcient government support for private museums is threatening their existence, a
phenomenon perhaps best exemplied by Ma Weidu's Guanfu Museum, which was among the
rst private museums founded in modern China. Ma is one of China's most renowned collectors
of antiquities due to his "treasure rescuing" activities in the early 1980s, a time of uncertainty
during which preserving and collecting such objects was a priority of neither the public nor
the government. Ma spent years acquiring valuable artifacts and art from rural areas and in
1996 established the Guanfu Museum in Beijing to exhibit them. Ma and his collection became
well known in 2005 when he hosted a popular lecture series about identifying antiquities on
Chinese state television.
Despite Ma's reputation and high public regard for the Guanfu Museum, Ma still struggles with
operational issues. Making operations especially difcult is the absence of an ofcial denition
in Chinese legislation by which private museums can be legally identied. In an interview
in 2010 with The Beijing Post, Ma explained his conundrum: "Are we a small business? An
industrial organization? A non-prot? There is no answer. It's hard to get supporting policies
without a legal identity. We can only register as a 'small business' because the operating
costs of the museum are huge and we have to earn some money to cover expenses. But the
ridiculous thing is that, after we put in all that effort just to survive and earn a tiny prot, the
government taxes us on it."

Key Success Factors

The challenges China's museums face are many, but the rst step towards solving them is
identifying the interrelated key success factors for museums at strategic and operational
levels.

China's Museums

STRATEGIC POSITIONING
Vision and value positioning: The State Administration of Cultural Heritage recently issued
a report on the development of China's museums that concluded that "unclear strategic
positioning is a serious bottleneck to the sustainable development of museums." Vision, which
denes the mission, specialization, and character of a museum, is the core of its strategic
positioning. However, over half of China's museums are unwieldy public "encyclopedic"
museums, which are by denition broad in scope and difcult to delineate. Few ever consider
their lack of distinct character and dened values to be an issue.
Functional positioning: Outside of China, museums commonly serve as educational and
cultural facilities in addition to preserving and displaying collections. Chinese museums
tend to regard these roles as, at best, occasional activities that do not require strategic
consideration. The disinclination of most Chinese museums to take up these roles negatively
affects their channels of social inuence.
Economic and social goals: Although museums in China are proliferating in new and
expanding urban areas, they are far from being integrated socially and economically into
their communities. Both museums and local governments must nd creative solutions that
optimize the capacity of museums to fulll economic and social goals.

CONTENT MANAGEMENT
Content positioning: At a strategic level, the absence of "content positioning" is similar to
the absence of "character." It has direct implications for the success or failure of a museum.
Museums in Europe and North America take great pains to dene a distinct niche for their
collections in order to draw interested visitors, academics, and researchers. Without a welldened content position, China's museums can only compete with each other in terms of size
and comprehensiveness.

Fig. 5Key success factors for

museums
Strategic
Positioning
Content
Management

Operation Capabilities

Talent Management

1
2
3
4

Vision
Value proposition
Function positioning
Economic and social goals
Content positioning
Content development
Resources management
Exhibition & activities
Branding & marketing
Efciency
Talent recruitment
Incentive system
Expertise management

Content development: After establishing a content niche, museums must be able to develop
that content in order to maintain sustainable growth. This means that they must not only
manage their content, but also increase its value. Museums in China rarely update, expand,
or rotate their exhibits, discouraging visitors from further exploration and causing the value of
their collections to stagnate.
Resource management: Developed museums have their own "intellectual resource pools" of
professionals and experts who share information on new research, market trends, aesthetic
trends, industry developments, and news. In China, this pool is limited to members of
supervisory committees and relevant government departments, rarely admitting entry to
outside experts who can provide fresh ideas.

OPERATIONAL CAPABILITIES
Exhibitions and activities: China's museums are overwhelmingly state-owned entities that
have little interest in or capacity for diversifying their exhibitions and sponsoring special
activities for various visitor groups. In recent years, some museums have experimented with
bringing in third party teams of experts to run exhibitions and have had some success, but the
mechanism that brings third party service providers and museums together is far from fully
operational.
Branding and marketing: The challenge of branding and marketing China's museums is
related to their lack of strategic positioning. Without a clearly defined position, museums
cannot effectively build a distinctive brand. Branding is also closely related to the
strategic issue of "character." Brand positioning involves creating an integrated image of
a museum's political, economic, cultural, aesthetic, and social character. The Smithsonian,
the Louvre, and the Guggenheim, for example, all have strong brands supported by
comprehensive marketing. There are no true museum brands in China yet, with the
possible exception of those connected to world-famous tourist attractions (e.g. the Palace
Museum) and the national and state level museums that are essentially encyclopedias of
Chinese civilization.
Efciency: In China, 98% of museums are state-owned institutions, and they are prone to the
bureaucratic inefciencies typical of any state-owned enterprise. Compounding matters is the
fact that these museums are not prot-driven, and in the absence of that particular motivator,
growth and the efcient use of resources suffer.

TALENT MANAGEMENT
Talent recruitment: Museums rely on professionals who have multidisciplinary knowledge
of art, culture, history, heritage preservation, and antiques restoration and conservation,
among other subjects. However, the supply of qualied talent is insufcient in China, with only
a few schools producing a handful of graduates each year. The current skill set of museum
employees in China is expertise-oriented, meaning that very few museum professionals have
the interdisciplinary skills that are so very much in demand. Furthermore, the current career
path and compensation for museum professionals are not promising enough to attract the
best-qualied candidates.
Incentive system: Chinese society generally views museum professionals as impractical
people who eschew good salaries and prestigious careers in the self-interested pursuit of
their own scholarly dreams. Indeed, passion for museums is a prerequisite for the career,
but museum professionals are poorly compensated for their level of education, forcing them
to delay or abandon the modern Chinese pursuit of high-status jobs and the salaries that

China's Museums

accompany them. There is, therefore, little incentive for students to pursue this career path,
seriously impairing the operations of China's museums. Theft is not uncommon, and is often
perpetrated or abetted by museum employees.
Expertise management: Expertise is a resource provided not just by museum
professionals, but also by outsiders closely related to their museum industry, including
researchers, professors, auctioneers, art journalists, third party service providers,
and real estate developers. This strategic "circle of experts" is crucial to the successful
operation of any museum and arises from a healthy networking environment. Most
museums in China simply lack the opportunities and motivation to establish relationships
with a variety of experts.

China Museum Case Study: Daming Palace National Heritage Park

For most new museums in China, operational, strategic, and talent management problems
often originate at the very outset of each project. In dening vision and goals, there is often
too much emphasis placed on immediate economic benets. By neglecting the potential for
cultural, social, and other more slow-moving economic benets, new museums struggle with
relevance and long-term development.

Fig.6Daming Palace Heritage Park

economic benefits

Daming Palace National Heritage Park

The Daming Palace National Heritage Park is a good example of this dynamic. Daming
Palace, located just outside the city of Xi'an, was built in 634 AD as the imperial complex of
the Tang Dynasty rulers. Until the 10th century, it was the largest palace in the world and
served as the political center of the empire during a golden age of cosmopolitan culture.
In 2002, the Xi'an government broke ground on the Daming Palace National Heritage Park
Project. The project covered an area of 3.5 square kilometers and encompassed a range
of goals, including support for heritage protection, archaeological excavation, and tourism
development. The project has had a highly positive economic impact on the area since its
opening in 2010.
On the economic side, the site has boosted land and property values throughout the entire
area. Investment in the area reached over RMB 14 billion in 2010. Housing prices in nearby
residential areas rose more than sixfold between 2002 and 2010, to RMB 20,000 per square
meter. The area saw 2 million visitors in 2011, adding signicantly to local GDP.

0.5bn
2002

1.3bn
2005

14bn
2010

> Investment of the park reaching RMB 14 billion.

CAGR=27%
3,000
2002

7,000
2005

20,000
2010

> Housing prices rose more than sixfold

in 8 years to RMB 20,000/m2.

2.0
2002

5.0
2015

> Park visitors expected to increase tenfold

by 2015 .

On the social side, the Daming Palace project fullled certain goals of the Xi'an City Culture
and Leisure Industry Plan and greatly boosted tourism. However, there is criticism that the
project was rushed, resulting in renovations of the site without thorough archaeological
excavations, poor infrastructure, a lack of educational and cultural activities in support of the
park museum's content, and too much emphasis on real estate projects surrounding the park.

Overseas Museums Case Studies: Hong Kong and Spain

Museums outside of mainland China may offer some insight into how Chinese museums might
implement strategic positioning, especially of their content, and strengthen their operational
and planning strategies. The West Kowloon Cultural District and the Guggenheim Bilbao have
made remarkable achievements and in dening their respective cities as global capitals of
culture and tourism.

1. The West Kowloon Cultural District: Outstanding Planning Strategy

A key strategic investment of the Hong Kong SAR government is the West Kowloon Cultural
District (WKCD) project. It will, when completed, include 17 integrated arts and cultural
venues, including museums, theaters, concert halls, and parks. In addition to being of high
commercial value, the WKCD is not simply a value-enhancer for surrounding residential
buildings. The project is a dynamic, multi-functional headquarters of arts education, nongovernmental organizations, and tourism. As a project that receives sustained and effective
support from the government, the WKCD typies the best practices for how a government can
plan public cultural facilities. It is expected to cost HKD 21.6 billion and is designed to support
the long-term infrastructural needs of Hong Kong's arts and culture development. The WKCD's
objectives are:
>

>
>
>

To facilitate the development of Hong Kong's arts and culture by supporting

local creative industries and talents and promoting arts education, community
participation in the arts, freedom of artistic expression and creativity
To foster international cultural exchange and cooperation with governments, nongovernment organizations, and providers of the arts
To encourage community, commercial, and corporate support and sponsorship of
arts and culture
To strengthen the position of Hong Kong as a tourist destination

Hong Kong's Need for Arts and Culture Infrastructure

Hong Kong is best known as a global nancial hub and a shopping destination, giving rise to
complaints that the city has focused on economic development while neglecting to develop
local culture. Recently, however, preserving the former British colony's cultural heritage and
developing the arts industry has become an increasingly prominent cause as the city forges
its post-colonial identity.
The government's recent spate of cultural policies and investments reects this desire to
strengthen Hong Kong's cultural and artistic environment. These include the corporatizing
of government-sponsored cultural organizations, creating small-scale public-private
partnerships, and developing cultural districts such as the WKCD.

10

China's Museums

Emphasis on Planning and Development: New Concept, New Thinking

In order to position Hong Kong as a rst-rate cultural and artistic metropolis, the government has
invested a great deal of resources into the planning of the WKCD. It has allocated a total of USD 2.8
billion for the construction of the district and is actively building partnerships with businesses
and cultural sectors to enhance the project. The WKCD project, as an integrated cultural hub,
will open a wealth of new opportunities to overseas investors. The district was designed to
ensure that West Kowloon will become an engine of urban regeneration and municipal branding
for Hong Kong. Several policies outlined in the plan for upcoming construction phases support
this positioning, including the stipulation that investors be required to build core and cultural
facilities and operate them for 30 years. In addition, only top professionals in arts and culture
are qualied to manage these facilities. Facilities in the district will have to abide by a certain plot
ratio parameter, ensuring a consistent aesthetic and optimized layout.
Site Layout
The WKCD site covers 40 hectares of the southern tip of the West Kowloon Reclamation Area,
23 of which will remain open space for visitors. The district will include 15 performing arts
venues, an exhibition center, and a visual culture museum focusing on 20th and 21st century
art, design, architecture, and moving images. In addition, the WKCD will also include residential
and ofce developments and hotels, restaurants, and entertainment and retail facilities.

2. The Guggenheim Museum Bilbao: Impactful Operational Success

The Guggenheim Museum Bilbao in Basque Country, Spain, is an excellent representation of
cultural infrastructure that benets from successful management strategies and networks.
The Solomon R. Guggenheim Foundation, founded in 1937, is a preeminent institution for
the collection, preservation, and exhibition of modern and contemporary art. Since 1970, it
has operated a global network of museums, including the Guggenheim Museum Bilbao. The
museum is globally renowned as a masterpiece of modern architecture and houses wellknown international modern artworks alongside works by contemporary Basque artists.
Even during the global economic downturn, the Guggenheim Museum Bilbao has seen an
increase in trafc, receiving 962,358 visitors in 2011. It continues to attract international
tourists to the region, with 62% of visitors coming from outside Spain. Many consider the
Guggenheim Museum Bilbao to be most successful example of the Guggenheim Foundation's
brand internationalization strategy. Its success is the result of the Guggenheim Foundation's
centralized operational and managerial strategies.
>

Strong brand image:The Guggenheim Foundation built its prestigious brand image
on the strength of large-scale, cross-cultural exhibitions. That brand is shared
amongst its global museum network.

11

>

Stringent operating parameters:The Foundation has a rigorous set of operational

guidelines in place that dictate protocols for receiving exhibits, packaging and
transportation, exhibition display, security, accident handling, and other procedures.
These centralized operational guidelines ensure that collections are kept secure and
are properly displayed as they rotate between museums worldwide. Little expense
is spared in security; in preparation for the "China: 5000 Years" exhibition, satellites
monitored the transportation of artifacts from Bilbao to Paris.

>

Partnerships with international galleries:Through partnerships with well-known

international art organizations such as the China International Exhibition Agency,
the Guggenheim Foundation has the support and resources it needs to develop
large-scale, international exhibitions and projects.

Economic Impact: 1.3 million visitors, EUR 274 million in revenue

Fig. 10Visitors to the Guggenheim

Museum Bilbao (Unit:'000)
1307

1998
1109

1999
2000

949

2001

930

2002

852

2003

869

2004
2005
2006
2007

909
950
1009
1002

2008

951

2009

905

2010
2011

12

956
998

Since opening to the public in 1997, the Guggenheim Museum Bilbao has attracted more than
1.36 million visitors, tripling the attendance projections made prior to the museum's opening.
The museum is a magnet for international tourism in Bilbao and Spain's Basque Country. A
visitor survey showed that more than 1 million people (79% of all visitors to the city) travelled
to Bilbao primarily to visit the museum.
In 2011, the Guggenheim Museum Bilbao generated EUR 274.3 million, accounting for 0.42%
of Basque Country's regional GDP. That year the museum generated an additional EUR 42.2
million in tax revenue for the Basque treasury, 0.39% of the total amount collected. By
generating tourism, the Guggenheim Museum Bilbao creates a powerful economic "multiplier
effect," in which tourists visiting the museum spend money on hotels, food, and shopping
nearby. A survey analyzing visitor spending proles estimated that the total average
expenditure of visitors to the Basque Country for the Guggenheim Museum Bilbao was EUR
352.68 per person.
Social, Artistic, and Cultural Impact in Basque Country
In addition to its economic contributions, the Guggenheim Museum Bilbao is also a highly
successful model of public-private cultural partnership. With more than 9,000 individual
members and 100 corporate members, the museum has the largest membership program
of any museum in Spain. The membership program helps the museum to form strategic
alliances with other entities, including companies and non-governmental institutions. These
alliances facilitate the sustained development of the museum's inuence. The membership
program also creates a target customer pool for various museum-sponsored art activities. It
makes art accessible to the local population; approximately 130,000 Basque visitors (6% of
the region's population) visit each year, thanks in part to the museum's active promotion of
Basque heritage collections. The museum is also responsible for maintaining artistic spaces

China's Museums

throughout Bilbao that display 20 public artworks. Each year it provides educational programs
to 30,000 schoolchildren and 600,000 adults to foster art appreciation in the community.

Fig. 11Bilbao interior

Together with the West Kowloon Cultural District, the Guggenheim Museum Bilbao provides
examples of successful public cultural institutions that leverage government support, expert
planning, precise content positioning, and operational excellence to maximize their value.

Solutions: Reviving and Maximizing the Value of China's

Museums
Museums in China face many daunting challenges on the path to achievement in the future.
China must address several key issues for both public and private museums in order to
jumpstart their full potential:
>
>

>
>
>

>

To what extent should Chinese museums adopt the operational models of overseas
museums? Should China create its own successful but distinctly localized model?
How should Chinese museums bridge divisions in content between "ancient" and
"contemporary" and "East" and "West" in order to create global museums that
represent a plurality of world cultures? How can they position their content as both
specic and universal? How should they balance the import of outside material
culture with the export of Chinese collections?
How can museums become nancially independent without adopting fully
commercial operations?
How should museums design new spaces or adapt old ones to optimize operations?
How should they assemble professional, expert teams?
How can museums compensate for their relative lack of contemporary Chinese
art collections without depending on expensive, exclusive partnerships with other
museums?
How can museums become regionally and internationally competitive? How should
they obtain inuence and draw visitors?

To answer these questions and to maximize their economic and social value, Chinese
museums should explore a variety of partnerships between themselves, governments,
professional institutions, real estate developers, and communities. One such partnership is
already taking shape in the form of collaboration between Roland Berger Strategy Consultants
and Artemisia, a French consulting rm that specializes in solutions for private and public
collections. Roland Berger and Artemisia, each with its own specic areas of expertise,
can mobilize their respective resources to collaborate with Chinese museums on effective
solutions.

13

STRATEGY
Chinese museums occupy a unique strategic position vis--vis their overseas counterparts.
The National Museum of China, for example, exists in order to "exhibit, promote, and facilitate
the establishment of advanced Socialist culture with Chinese characteristics," a mission that
reects the spirit of a 2011 decision outlining the CPC's planned reform of China's cultural
system. As a result, it would be disingenuous for Chinese museums to adopt overseas models
wholesale. Rather than simply copy other museum strategies, China's museums must create a
new model for the 21st century that incorporates a fuller understanding of the cultural needs
of its people and the ambitions of its cities. Roland Berger's strategic expertise provides insight
into how museums can build a successful Chinese model that also functions within a fully
global scope.
Within China, a nely tuned strategic position must balance the social and economic value
of museums. Most cities in China seeking to develop museums rst need an urban planning
strategy that integrates cultural, social, and economic functions. Any museum strategy,
therefore, is best understood as an integral part of urban development and should clearly
dene its values and benets. Roland Berger Greater China's Public Services Competence
Center is well equipped to design such strategies. The Public Services Competence Center
is a market leader in providing professional and comprehensive solutions for companies,
government bodies, and organizations in cultural and creative industries, economic
development zones, and new urban areas.

ART AND CONTENT DEVELOPMENT

The artistic value of a museum is its heart and soul. It is determined by a series of factors,
including architecture, collection type, and institutional relations. A museum must dene and
develop its core artistic value by creating a cultural program that decisively distinguishes it
from other institutions. Artemisia's team of professionals specializes in building institutional
identity by incorporating architecture, exhibitions, and collections into museum programs that
remain viable and relevant for generations.

BUSINESS DEVELOPMENT
Technically, museums are not businesses, but they do share similarities. Like companies,
cultural institutions must be economically efcient and politically astute. All museums, private
and public, must develop brands that can drive nancial value and expansion. Strong branding
gives museums the power to export collections instead of just importing them and to negotiate
on an international level. Roland Berger's rich experience in working with both companies and
non-prots has allowed the consultancy to develop a unique expertise and toolkit that can
help museums to develop efciency optimization plans, budget management strategies, and
branding and marketing solutions.

14

China's Museums

OPERATIONS
As any organization knows, operational issues are rarely just "operational." In addition
to developing resources and talent, museums require a strategic external network of
relationships in order to optimize operations. A sophisticated museum operations strategy
requires both internal excellence and external links to facilitate activities and growth.
Artemisia's network of professionals (including art historians, curators, critics, galleries,
artists, architects, conservators, art shippers, and journalists) equips it to provide specialized
expertise in museum management, local and regional network-building, talent recruitment,
resource management, on-site exhibition support, and marketing activities.
There is great potential in partnerships such as that between Roland Berger Greater China
and Artemisia for China's museums. As they continue to grow, China's museums are facing
signicant strategic and operational issues requiring solutions uniquely tailored to the
Chinese market but rmly rooted in the global museum network. Roland Berger's experience
with strategic positioning of economic and social values, efciency optimization, budget
management, and marketing strategies make its partnership with Artemisia an ideal platform
for museum development projects.

Fig.12Partnership between Roland Berger and Artemisia and their areas

of expertise

Operations

Strategy
> Strategic positioning
> Economic development model
> Urban planning/real estate
strategy

Business
development

> Exhibition planning

> Network building
> Marketing

Art and content

development

> Culture program development

> Institutional identity development
> Collection value management
> Efciency optimization
> Budget management
> Branding

15

RBChina.Marketing@rolandberger.com

Beijing

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Shanghai

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Guangzhou

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Hong Kong

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Taipei

37/F, Taipei 101 Tower, 7 Xinyi Road, Section 5, Taipei, Taiwan, 110 Tel: +886 2875 82835

www.rolandberger.com.cn
infochina@rolandberger.com.cn
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