Emotional Assets | Management & Research

Newsworthy Items

Recent auction in Hong Kong breakes HK$110 Million barrier.  In November 2009 Bonham's Auction house surpasses HK$100 Million barrier for the first time with its sale of Fine Chinese Ceramics, Works of Art and Paintings, Fine Jewellery and Jadeite, Fine Wristwatches and Clocks, Fine and Rare Wines and Old and Rare Whiskies.

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Porcelain immune to the financial crisis

According to the Art Newspaper, demand for 18th-century German porcelain, in particular Meissen, has remained unchanged during the economic crisis. Prices for the finest-quality porcelain, which have increased for years, have risen even faster since the beginning of the recession. According to Herbert van Mierlo, director and expert in works of art, furniture and porcelain at Sotheby’s in London, “The market is dominated by a relatively small group of specialised, devoted collectors looking for exquisite pieces. Because of this, the market for porcelain has remained practically immune from the negative effects of the financial crisis, especially in comparison to the general art market.”

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Waterford Wedgewood is to be sold to a U.S. private equity fund for an undisclosed amount. The 250-year old ceramics maker collapsed into administration after missing a repayment deadline for its €449 million debt in early January 2009.

The administrators, Deloitte's, have been in discussions with KPS Capital Partners, who recently purchased Waterford’s American rival Lennox. KPS is expected to merge the two companies.

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Germany's Meissen, Europe's oldest porcelain manufacturer, announced in January 2009 that they are positioning themselves as a luxury brand to rival Louis Vuitton and Bulgari. Europe's china and porcelain industry has declined in recent decades due to the less traditional tastes of a younger marketplace.

During an economic downturn may not be the best time to launch a luxury product, however, this appears to be Meissen's way of adapting its product base to a younger clientele - and avoiding Waterford Wedgewood's fate. Meissen plans on expanding into the Italian and Chinese markets as well as aligning itself with watch, jewellery, pens and interior design providers.

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