MYANMAR S ART MARKET: A WEALTH OF POTENTIAL

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1 MYANMAR S ART MARKET: A WEALTH OF POTENTIAL With the opening up of Myanmar s economy in recent years, the country s contemporary art market has hit the ground running. Large art galleries and dealers remain scarce, but the number of smaller art galleries has been on the rise, and with more foreigners visiting Myanmar each year, discovering the country s true potential in the creative industries is a must. Phway Su Aye Myanmar Research Consulting Capital Markets A burgeoning art market will not only help Myanmar with its own economic growth, but also help bolster its reputation on the international stage as a creative and diverse economy. With the new FDI law in place, Myanmar art investments are set to grow. In fact, since last year, the prices of Myanmar artworks have seen a steady increase. However, the industry still has plenty of barriers to tackle and local artists, galleries and art education providers need to be aware of the obstacles and endeavor to overcome them. art making. Because of decades of censorship and political oppression, artists, especially those with socio-political agendas, were unable to prosper. Despite limitations however, many artists taught themselves and became adept in both the Eastern and Western artistic traditions. With the lifting of censorship laws and a loosening of government control over the creative industries, artists have become more able to freely market their work and Myanmar s art business has taken a different turn. Myanmar artworks are unique not only in their subject matters, they are also distinctive in their cross-cultural influences. Landlocked between several key Asian nations, Myanmar art has benefited from the influence of its Indian and Chinese neighbors in terms of ideas and styles. Furthermore, the suppression of artistic expression has, much to the dismay of previous censorship supporters, made Myanmar art all the more complex and informed. With the country s The breadth of Myanmar art is truly remarkable. Myanmar, like most countries in South East Asia, has historically been known for its handicrafts including its lacquer ware, pottery, woodwork and embroidery. Years of craftsmanship have made the Myanmar eye wary of the finest of details and the technical skills required of traditional media have found its way into contemporary 1

2 unstable political history and economic hardships, Myanmar contemporary art has often evolved to adopt a tongue-in-cheek attitude, addressing difficult issues but cleverly lacing them in historical artistic techniques. Foreign buyers, often having little previous exposure to Myanmar art, have found the styles intriguing and unique interplays of tradition and modernity that make use of both Eastern and Western art making methods. Prominent artist Nay Myo Say, for instance, uses mix media to combine traditional Buddhist images with abstract elements, producing a clash of old and new. Contemporary artist Chan Aye has united Buddhist concepts with Western abstract art techniques to create works with widespread international appeal. Although influenced by the West, many of these artists create designs that are still unique to Myanmar. What art buyers and investors must now know is that Myanmar artists are trying new things and the picturesque Impressionist works of the past are slowly being churned into modern works with layer and depth that could truly contribute to the development of contemporary art across the world. Walking through the streets of Yangon these days, it is not difficult to spot a local art stall or small gallery. Yangon plays host to over a hundred art spaces but official galleries and art dealers catering to the international market are still rare. River Gallery is one of the few established art galleries in Yangon that specifically targets foreign buyers. Located within the Strand Hotel compound in central Yangon, its small but crucial location makes it a leading place for foreigners to explore Myanmar artworks. The gallery is owned by New Zealander Gill Pattison and possesses works from roughly artists. The range of artworks is vast, but the specialty of this gallery is that it keeps its focus minimal high-quality contemporary art with a Myanmar spin that caters to foreign customers. Prices within the gallery vary from artist to artist. Some large Impressionist paintings and unique abstract works can sell for over USD$10,000. However, most artworks within the gallery go from USD$1,000- $5,000 depending on the reputation of the artist and the quality of the paint and material used. Although these prices may sound meager compared to auction prices of pieces at large art auction houses such as Sotheby s and Christie s, they are significant in comparison to how much Myanmar artists have traditionally been paid. What art buyers and investors must now know is that Myanmar artists are trying new things and the picturesque Impressionist works of the past are slowly being churned into modern works with layer and depth that could truly contribute to the development of contemporary art across the world. Mya Mya San, one of River Gallery s managers, claims that there has been a truly growing interest in Myanmar art, from not only overseas galleries and auction houses but also private collectors from across the world. This growing interest has been encouraging for Myanmar artists who can rarely depend on their art salaries to live. Companies, individuals, and other art spaces interested in purchasing artwork can approach galleries like River Gallery directly with their briefs. The galleries then act as liaisons between clients and artists, going 2

3 back and forth, negotiating prices, assisting in contractual deals and making sure all the legalities are in place, especially as artists are still largely unaware of how these deals are made overseas. The galleries also manage the export of all artworks from packaging to delivery, ensuring the pieces are in good condition for immediate display once they arrive at their respective destinations. River Gallery makes sure that its artists use only the best canvases and materials that meet international standards, an idea that should be adopted by other artist support networks across Myanmar. River Gallery s pieces are then able to fetch high prices in comparison to local counterparts where individual sales of even USD$1000 would be unheard of. But because of the gallery s focus on high quality, pieces there are expensive, and adventurous collectors willing to explore local galleries and approach lessknown artists directly may find artworks at a fifth or tenth of the price. Nevertheless, local artwork still lacks quality control, and artists, although extremely skilled and able to produce exceptional pieces, can only afford to use the cheapest of materials. works have been displayed internationally, also hosts a range of artists. New Treasure Art Gallery, established by one of Myanmar s most popular artists, Min Wae Aung, is another art space that offers a view into the diverse range of works Myanmar artists have to offer. Lokanat Galleries is a regular art display space that holds exhibitions for local talent. It, too, offers a glimpse at the technical skills of Myanmar artists and the vast potential this art market has. Art investors and visitors to Myanmar should make it a priority to visit these local galleries as many of them are artist-owned and direct contact and negotiations can be made. One key obstacle to Myanmar s burgeoning art industry, however, is that Myanmar artworks are mainly circulated within the country and because of the small size of Myanmar s middle class, profitability for artists is still minimal. The practice of buying artworks for display within the home is rare, with only wealthy individuals, foreigners and companies in the country doing so. Artists, therefore, make do with the minor profits they receive from tourists and a few local private collectors, unable to turn to additional foreign buyers to sell their art at higher international market prices. However, prominent artists are coming on to the international scene, and the potential for the growth of Myanmar s art market is immense. As foreign buyers, museums and Along with River Gallery, other prominent contemporary art spaces in Yangon include Myanmar INK Art Gallery, Inya Art Gallery, New Treasure Art Gallery and Lokanat Galleries. Myanmar INK offers an extensive range of works in various styles from pop art and watercolors, to still lifes and surrealist works. Inya Art Gallery, owned and operated by artist Aung Myint, whose own 3

4 galleries become more aware of the diversity and depth of Myanmar art, artists will have more opportunities to showcase and sell their works overseas. Companies like VISTO Images, an international art consulting firm specializing in interior design, has already begun its market research to enter the Myanmar art scene. It aims to source the best talent that Myanmar has to offer, building a collection of works to showcase to clients in the hospitality, restaurant and interior design sectors. Although foreign interest is brewing, Myanmar s art industry has plenty of key obstacles to overcome. Myanmar needs to first develop local art networks from the ground up, increase funding for local galleries and exhibitions from both domestic and international sources. The country also needs to completely modernize the industry to make it viable for foreign investment. Speaking to local artists, the main problem within the industry seems to be that there is simply no effective art business system. The artists themselves do not understand how artworks are managed, sold and licensed, and contractual agreements to do so remain an alien concept. Many artists do business on a word-of-mouth basis, relying on trust and their previous relationships with individuals and galleries to make sure their artworks are in safe hands when taken for display or roadshows for selling. Furthermore, copyright and intellectual property laws, although existent, are still widely misunderstood. Myanmar s legal system is still in tatters and those in the creative industries work with the faith that they will not be cheated, often with no firm legal entity to back them up. Of course, institutional changes such as strengthing Myanmar s copyright and intellectual property laws will be a long time coming, but art galleries, art schools and artists themselves can become more informed. For the Myanmar art industry to grow, art schools such as the State School of Fine Arts in both Yangon and Mandalay need to offer workshops on artwork management. These schools need to teach potential artists not only the theory and technical skills behind art making, but the financial, accounting and managerial skills behind art marketing and selling. Workshops on how to value artworks, how licensing agreements work, and how to effectively market and sell art may seem foreign to art masters who pride themselves in only caring about art production and not the business portion of the matter but without incorporating these key management aspects into art teaching curriculums, the growth of Myanmar s up and coming artists will be greatly hindered. Art galleries, too, need to maintain better management of the artworks they sell, keeping accurate track of transactions and accounts, and writing annual reports for the interests of artists hosted by the gallery and potential art buyers. Not only is the business aspect of the Myanmar art market still weak, a lack of firm art education and effective bank transfer systems have stopped Myanmar artists from making true use of the country s new open market atmosphere. Speaking to Chan Aye and wife and fellow artist Phyu Mon, art education seems to be truly lacking in the country. It is not that the country s art schools fail to teach its potential artists the necessary technical skills for highly elaborate works. In fact, drawing and basic artistry skill classes definitely match international standards. However, when it comes to understanding artistic concepts, forming one s own style and experimentation with genres and me- 4

5 dia, there is a large pitfall. Phyu Mon hopes that art curriculums will come to include international art history as well as Myanmar art history and encourage students to truly think for themselves and create informed and highly conceptual works. Furthermore, although many of Myanmar s last generations of artists have missed out on this new open atmosphere, their children now have the potential to look up online art courses and download plenty of electronic books on relevant subjects. With Myanmar art education still in its development stages, harnessing the power of online learning is needed for Myanmar artists to produce more dynamic and experimental pieces that will push beyond the Gainsborough and Constable styles of realist artists in the past. Apart from improvements in art education, the strengthening of the country s financial system will be hugely beneficial to the art scene. Contemporary artists and co-manager of Studio Square gallery, Nyein Chan Su, says that it has been difficult to conduct large orders as the international payment system is still weak. In the past, when tourists could only bring in small amounts of cash, buying expensive artwork was largely improbable. With the entry of Visa services into the country and the possibility of Western Union transfers through specified banks, such as CB Bank and Kanbawza Bank, it appears that international transfer services can occur with more ease. Nevertheless, tourists should still understand that these services are oftentimes unreliable. Nyein Chan Su explains that one of his clients, having heard that Visa was accepted in Myanmar, simply brought his card for a purchase. When he went to a nearby ATM to withdraw cash, the ATM was out of service and rejected any sort of withdrawal. Artists need to become more informed about international art practices and also market themselves to potential overseas clients through the use of social media and other online platforms. Visa payments are new to the country and it will take a few years before the nation s few ATMs begin to be fully functional. Institutional changes will be slow but there is still much that local artists and galleries can do to improve their stand in the international art market. Artists need to become more informed about international art practices and also market themselves to potential overseas clients through the use of social media and other online platforms. Artists that have reliable websites with biographies, works, and contact details on display are much more attractive to foreign buyers who cannot always be on ground to purchase works. Furthermore, galleries with Facebook pages and websites can attract the same attention. People overseas interested in contacting the artist can do so with much more ease. Many local artists still lack the means to gain access to the internet, however, galleries looking to expand their artist base can look to add smaller local artists to their online databases for marketing and promotion. Not-for-profit artist networks and sharing spaces can also work to maintain well-functioning websites and contacts to ensure potential international customers know where to look and who to contact. Capitalizing on social media and the internet will be key to the expansion of Myanmar s contemporary art scene. 5

6 Art as a new asset class has been something of interest for investors looking to diversify their portfolios and Myanmar will become an interesting market in the next years if its art business can be modernized. Recent research has shown that art markets are rarely affected by economic downturns, and do not follow the same trends as stocks, bonds and other common investments. Although unpredictability of sales and a lack transparency within the market are both hindering factors to full-fledged art investments, art can offer high returns with little financial management if bought and sold at the right times. Myanmar s art market is still in a nascent stage, however, once the industry begins to establish its ground and Myanmar artists are thrust in the international limelight, investors, especially those interested in the South East Asian region should look with fresh eyes at the developing Myanmar contemporary art scene, researching artists and buying artworks before prices rise. Myanmar s art business has the potential to grow exponentially, not only because of its small start, but simply because of the wealth of skills and talents of its artists. For design companies, private investors and general interest buyers, it is a prime time to explore the Myanmar art scene and establish relations with galleries and individual artists. Prominent Myanmar Contemporary Art Galleries Pansodan Art Gallery 1st Floor, 268 Pansodan St (Upper Block), Kyauktada Township, Yangon Tel: (959) Lokanat Galleries No. 62, 1st Floor, Pansodan Street, Kyauktada Township, Yangon Tel: (951) Inya Art Gallery No. 50 (B), Inya Road, Kamayut Township, Yangon Tel: (951) , (951) River Gallery Strand Hotel Annex 92 Strand Rd, Yangon Tel: (951) /8/9 ext Myanmar INK Art Gallery No. 32/1 AlenPya Pagoda St, Mingalar Taung Nyut Township, Yangon Tel: (951) , (959) New Treasure Art Gallery No. 84 (A), Than Lwin Road, Bahan Township, Yangon Tel: (951) New Zero Art Space Room 202, United Condo, Alanpya Pagoda Road, Yangon Tel: (951)

7 Myanmar Research Consulting Capital Markets 307 Shwe Hinthar Tower B 6 1/2 Miles, Pyay Rd. Yangon, Myanmar +95 (0) info@thuraswiss.com 7