Derivative art, as a combination of art and commerce, has gone through decades of development in the West. It is now a huge industry that has churned out a number of classic works known worldwide. However, in China it is still in its infancy.

“Derivative artworks have actually existed in China longer than many people realize. For instance, the artifacts museums model on their collections and sell as souvenirs all fall into this category,” said Sun Yongzeng, curator of White Box Museum of Art, an establishment in Beijing’s avant-garde 798 Art District. “Currently, the concept of the ‘derivative’ generally refers to those based on contemporary art works. It is still in an early stage and not widely accepted by the market.”

A survey conducted by the State Administration of Cultural Heritage shows that only two museums on the Chinese mainland have exceeded RMB 5 million in their annual sales of derivatives: the Palace Museum in Beijing and the Shanghai Museum. In stark contrast, the figure for the National Palace Museum in Taipei is more than RMB 64 million every year, that for the Tate Modern in London RMB 300-500 million, and for the Metropolitan Museum in New York City RMB 500-700 million.

But this gap means that there are bright prospects for the industry in the mainland, and recent years witnessed it start to take off. In the first quarter of 2011, the sales in the Chinese art licensing market registered a tenfold increase over the corresponding period of the previous year. That year is hence believed to herald a new era in China’s art derivatives.

Arts or Bucks?

Two years ago, sculptor Xiang Jing’s Are a Hundred Playing You? Or Just One? sold at auction for RMB 6.2 million, a record price for a Chinese sculpture. Such a sum is far beyond the reach of China’s rising middle class, but at X+Q, named for Xiang and her fellow sculptor and husband, Qu Guangci, reproductions of the couple’s works and products based on them are available at more affordable prices.

X+Q is situated among international brand-name stores in Sanlitun, a popular destination for expatriates and Beijing’s affluent youth. Its displays range from various ornaments, silk scarves, purses, and iPad cases to replicas of their sculptures.

The most popular items are sculpture replicas, priced about RMB 6,000, mere pocket change compared to what their real life originals would fetch on the open market – normally no less than RMB 700,000. It draws in big names such as film director Feng Xiaogang, who recently bought a bunny girl with smiling eyes called I Have Seen Happiness as a wedding gift for an actor friend. The store’s reputation and status mean that fashion conscious women don’t cringe at the RMB 2,000 to 5,000 price tags on handbags sold there.

At the 798 Art District’s galleries and exhibitions, popular among tourists and locals alike, many well-known images of contemporary Chinese art, including Liu Ye’s cartoon idols, Zhou Chunya’s green dogs, Zhou Tiehai’s camel in traditional Chinese dress, have been interpreted into ornaments or household commodities. Sold at affordable prices and as limited editions, these items are attractive to shoppers with a refined taste but limited budget.

Yue Minjun, whose grinning man is one of China’s most recognizable images, said he enjoys producing derivatives, while painter Guo Wei regards them as pure consumer goods. “It’s very common for foreign museums or galleries to produce goods with images of masterworks. A scarf printed with a painting of Leonardo da Vinci or Van Gogh is a remembrance of masters as well as a demonstration of the wearer’s taste,” said Guo Wei. “You may not be able to afford an authentic work, but you can own it in another way. It is also a kind of promotion for artists. However, derivative artworks are still no more than keepsakes. They are not investments but pure consumer goods.”

Qu Guangci and Xiang Jing devote a large amount of time and effort to this niche industry. From the beginning, they abandoned traditional retailing channels like art shops and galleries, as they wanted to deal with a broader market. This wider target audience means that packaging is particularly important. Qu personally searches for the ideal packaging producer and lays down detailed requirements.

Though their approach has been criticized by some fellow artists who scorn them as pecuniary-motivated, Qu and Xiang are unaffected. “Art and commerce aren’t contradictory,” said Qu Guangci. “Pop art becomes popular by expressing itself in shapes and forms that appeal to the average person. Artists and merchants have to compromise and find the middle way to satisfy both sides. Q+X is not just a brand, but more like a social activity or a public art program.”

Started only a year ago, Q+A has opened four stores in Beijing and 12 distribution outlets, including one in Lane Crawford and one in the Shangri-la Hotel. Last year Qu launched its first online store in Taobao.com, China’s most popular online shopping site.