The lounge and restaurant are in front, serving as the reception area during exhibitions and workshops. Two screens play footage of past Factory events. The Factory has already held dozens of events - fashion shows, art exhibitions, lectures and film screenings.

The sound recording room, with a floor-to-ceiling glass wall, is also in front. It's free for young musicians to make their first recording in the room; they pay for later records.

Dinsmore and Profero Group will also help sell recordings to the group's international clients.

"The common marking model for international brands in China uses a pop star to appeal to the local market or international stars," says Dinsmore. "But that's not working as well as before and they are increasingly interested in reaching out to young local artists to enhance the local market."

He hopes to fit and match the artists with the brands.

The Factory posts many promotions for events and exhibitions on online forums like Douban or Neocha, popular among young Chinese born after the 1980s and 1990s.

With active and continuous exhibitions and workshops, Dinsmore has met a lot of young Chinese artists during the past three months. He is already getting calls every day from young local artists who want to hold art exhibitions or record and play their music.

"We are working hard to sell their works to international brands and I plan to make a single for a young local singer, maybe followed by an album," says Dinsmore.

The music recorded in the studio are played in the lounge and bar if the artists want an audience.

There's a similar model for the visual arts section in the Factory, containing a glassed-in computer room, a fashion and crafts pod with sewing machines, an art pod and the retail section where artists sell their crafts, installations, paintings, photos and other creations.

Most of the Factory's earnings come from the restaurant, which has a California chef and a diverse and changing menu, but Dinsmore hopes the creative sections will eventually become the major source of income.

If this model is successful, Dinsmore and Profero aim to expand to Beijing and other cities, like Bangkok.

"This idea really fits in emerging markets like Beijing and Bangkok," says Dinsmore. "They are still fresh and maturing quickly."

Opening hours: 11am-11pm

Address: Bldg 4, 29 Shajing Rd

Tel: 6563-3393

(Shanghai Daily July 16, 2009)