AV Magazine
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China remains the largest market in APAC (according to
AVIXA) and continues to present robust business. Adrian Pennington finds that
Chinese audio visual culture is moving from a visual-centric approach to more
sensory experiences.
China’s AV growth may have decelerated a touch (by four
percentage points to 6.9 per cent) between 2023 to 2024 – and been overtaken by
India as a result – but it remains the largest market in APAC (according to
AVIXA) and continues to present robust business.
While annual growth prospects are between 2.5 and 7.5 per
cent for most industries, Elijah Ebo, director of APAC Operations at Brompton
Technology, predicts pro AV in the country will deliver 10 per cent-plus growth
each year until 2029.
In many ways, the Chinese market is no different than the
European and US, except major and large budget projects are usually dominated
by government rather than private capital. What has changed out of almost all
recognition over the past decade or so is how the Chinese view AV.
“From having almost no AV design, we are now seeing AV
design become increasingly sophisticated; the market is in a dynamic phase,
with audio visual solutions being widely applied across various industries,”
says Feng Hanying, director, Genelec China.
He continues: “Chinese audio visual culture is transitioning
from a visual-centric approach to a more comprehensive sensory experience. As
consumer demand for holistic experiences rises, businesses and projects are
increasingly focusing on more integrated multi-sensory concepts, such as the
buzzword ‘five-senses marketing’.”
Sensory overload
In the context of sensory experiences and immersive environments, sound is
receiving increasing attention, he says. “There are also transformations in the
increasing modernisation and refinement of commercial spaces, and the growing
emphasis on sound, light, electricity, and interactive experiences in museums.”
Hanying is far from the only correspondent highlighting
China’s high-tech prowess. “Chinese AV is on the brink of a major
transformation, with groundbreaking advancements set to redefine how we
experience sound and visuals,” believes Sergio Molho, partner, director
business development at WSDG, an architectural acoustic consultant and media
systems engineer.
China’s 90,000 movie screens give it a solid domestic market
to expand feature film production. Its streaming, TV and online services
industry generated 668.3 billion yuan ($95.3 billion) in the first half of
2024, a YoY growth of seven per cent.
“This is the result of deliberate efforts in technological
innovation and increased global collaboration that have positioned China as a
formidable player on the global media stage,” says Molho.
China is the world’s largest gaming market, with nearly 700
million gamers. Industry consultancy, Newzoo projects that the country’s video
game market revenue will reach $45 billion this year, compared with $47 billion
for the US, which has about 210m gamers. Chinese tech giant, Tencent is the
world’s largest game publisher, with mobile game sales worth $25.6 billion in
2023. Leading industry analysts predict China’s gaming market will exceed $57
billion in revenue by 2027.
“The relationship China has fostered between technology and
creativity in these fields is truly remarkable, and the interaction between
Chinese animation and gaming and international markets is increasingly
evident,” says Molho.
Brompton’s Ebo is optimistic for increased demand for AV
solutions in the entertainment, corporate, and education sectors. “As the live
events industry returns to full strength, concerts are getting larger and
larger, not wanting to be outdone by the likes of the Adele residency in
Munich. These events are usually televised, which spurs on the broadcast
industry. Virtual Production will continue to see investment over the next five
years, albeit at a slower rate. In fact, one could say VP in China is still at
its infancy.”
Cultural soft power
Domestic performing arts centres and theatre installations are experiencing a
contrasting trend. Demand here has been in decline since Covid, with the
recovery expected to be slow, reports Abby Hu at Powersoft China. “Such
projects are usually government funded, and funds are now being directed
towards high-tech industries and small-to-mid size companies instead. In
contrast, live events rebounded quickly from the pandemic and is generating
more business than ever.”
AV in China is understood as a vital medium for promoting
traditional culture and showcasing the nation’s image. “Significant changes are
reshaping this culture,” says April Qin, senior sales director, Enterprise,
Christie. “Content is shifting from mass communication to segmented approaches,
with platforms such as iQiyi and Tencent Video tailoring offerings to diverse
user needs across categories that include humanities, history, and nature.
“Content has expanded from a focus on historical and
revolutionary themes to a broader spectrum of micro-narratives and diverse
genres,” she elaborates. “The integration of technology and art has made AV
works more immersive, exemplified by the 3D animation Journey to the West: The
Return of the Great Sage and the cultural variety show China in Classics.”
Museums, archaeological parks, resorts, theme parks, and
night time attractions are leveraging VR/AR, XR, holographic projection, and
naked-eye 3D to create immersive spaces. The integration of online digital
scenes such as e-sports, animation, and games with offline tourism is further
driving visitor engagement.
Immersive museums
Three museums in Guangdong province have recently been “transformed into
immersive cultural landmarks.” The Bai’etan Greater Bay Area Art Centre (home
to the Guangdong Museum of Art) Guangdong Intangible Cultural Heritage Museum,
and Guangdong Literature Museum, are now illuminated by over 50 Christie GS
Series and Captiva ultra-short-throw laser projectors. Another notable project,
the ‘Unique Dream of Red Mansions’ theatrical park in Langfang, Hebei Province,
features 84 Christie projectors.
“AV content has also become a powerful tool in international
communication, enhancing China’s global influence through documentaries and
short videos,” says Qin. “Additionally, AV works celebrate Chinese aesthetics
by refining techniques rooted in national culture and traditions.”
Aside from the implementation of new technologies and
immersive media Phil Kamp, head of sales for KLANG reports growth being driven
by a growing focus on sustainability. “All three are promoted on a government
level and asked for by consumers.”
He also reports that pro AV education is becoming more
formalised “which brings a new, diverse and highly skilled workforce into the
industry. The ability and creativity of this workforce ensures that Chinese
concepts are becoming more popular than simply adapting Western examples for
this unique market,” he says.
Government initiatives
Calling the market highly competitive and “motivated by a culture of
open-mindedness and constant innovation,” Ken Yu, sales manager, Business
Communications, Greater China at Sennheiser says: “People are always talking
about the latest products and technology, and are eager to learn about or even
create new applications.”
The “huge potential” of the corporate vertical is one
example, says Yu. “This ranges from international and local companies to
Sino-foreign JVs and government-owned corporations, each with distinct needs.
Conventionally, the government-owned companies operate traditionally. Local
companies are often price-sensitive, while international corporations
prioritise quality and innovative application.”
Despite macro-economic challenges, government initiatives
offer opportunities for growth. Policies such as the ‘Action Plan for Promoting
Large-Scale Equipment Updates and Trade-in of Consumer Goods’ and the ‘Action
Plan for Innovative Development of Smart Tourism, introduced by the State
Council, emphasise upgrading and replacing projection equipment in smart
cultural tourism and performing arts sectors. These measures provide a
favourable environment for manufacturers to meet the needs of these evolving markets.
Another growing sector is corporate, cited by Abby Hu at
Powersoft who notes that digital-first companies such as Huawei, Tencent and
Alibaba are increasing their investment in cloud-based businesses and online
conferences “making it a very active vertical.”
She adds: “Chinese manufactured conferencing and remote
collaboration products are gaining market share. Many former foreign brand
distributors and SI companies are diversifying their offerings and wearing
multiple hats.”
While Chinese sport venues are shifting from single use to
multi-purpose facilities, investment in high-end AV is increasing. One standout
project is the Xiamen Olympic Sports Centre. “This is the symbol of the culture
development in the beautiful coastal city,” says Hu. The arena has over 18,000
seats and is able to transform between an NBA-standard basketball venue and a
professional ice-hockey court.
The country has built 136 entire airports since 2001 and now
the transportation sector is undergoing a digital transformation, driven by
directives from nine national ministries to accelerate smart port construction
between now and 2035. “These initiatives encourage upgrades to outdated
equipment, creating significant opportunities for AV manufacturers,
particularly in control rooms requiring advanced technologies like projection,
LED displays, content management, and image processing,” says Qin.
Culture and tourism drive regional cities
The bustling metropolises of Beijing, Shanghai, Shenzhen, and Guangzhou are
undisputed hotspots of activity. Beijing, as the political and cultural
capital, hosts numerous film and television companies, media organisations, and
art schools, making it a hub for audio visual activities.
Shanghai, with its dynamic economy and international
culture, attracts a wide range of AV production and exhibition events.
Guangzhou, the economic centre of southern China, has a noteworthy cultural
environment and active creative industries.
However, growth isn’t solely concentrated in these areas. Yu
reports second and third-tier cities like Chengdu, Xian, Nanjing, and Hangzhou
“becoming increasingly dynamic, presenting plenty of promising opportunities.”
Abby Hu adds Changshan and Chongqing to this list: “These
cities are getting more popular because they are entertainment centres or
tourism cities with high GDP.”
Molho also cites Xiamen and Wuhan as part of a shift from
the coastal regions to inland China. “In future, we plan to increase our
projects in Southwest China with strategic collaboration with local players
based in Chengdu, a city that is set to become the new central cultural and
entertainment hotspot.”
Regions like Jiangnan Water Town and southern Fujian
Province, “known for their unique cultural and tourism appeal,” have also
emerged as significant pro AV hotspots,” says Qin. “While digitalisation and
networking have broadened the reach of audio visual activities beyond
geographic boundaries, large cities and culturally distinctive regions remain
key centres due to their advanced infrastructure, concentration of professional
talent, and rich creative resources, providing a solid foundation for the growth
of pro AV in China.”
Think local
For foreign companies looking to succeed in China, localising marketing, sales
and after-sales is the key to building trust and breaking into the
market.
“The Chinese pro AV market used to rely on personal
connections, much like in traditional Chinese culture, which is rooted in
family and close relationships,” says Hu. “While personal connections still
play a significant part in business it’s more important to have a great quality
product and brand awareness. When entering China, it’s important to make sure
the marketing strategy is localised, and that key information is easily
accessible.”
Priorities to consider
Qin thinks companies should prioritise technological innovation, address
diverse consumer needs, strengthen brand building, and leverage policy
advantages.
“Additionally, government policies promoting consumption
upgrades and cultural industry development present significant opportunities.
Companies should capitalise on subsidies, procurement projects, and other
incentives to lower entry costs and boost competitiveness.”
To best engage the Chinese market, Yu suggests sellers and
integrators pay attention to local Chinese brands. “These brands are
experiencing rapid growth and expansion, fuelling significant investments in
R&D,” he says. “With cutting-edge technologies, they are becoming
significant competitors, even on a global scale. Keeping abreast of their
activities is vital.”
Engagement
Being “digital and visible” with Chinese “keywords” is a must, advises Molho,
as is staying informed about the latest policies, programmes, and incentives.
“Engaging with government agencies and local authorities is
crucial for businesses to fully leverage the opportunities the Chinese market
offers,” he adds.
“Having a long-term perspective with an open attitude and
cultural adaptability, building strong and genuine relationships with local key
players, and collaborating on technology and innovation are the main pieces of
advice we can share.”
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