JNA Mar 2020

市場情報 JNA Mar/Apr 2020 | 63 International Chanthaburi Festival jewellery fashion show C oloured gemstones and finished jewellery are among Thailand’s top-performing export products, accounting for a 6.99 per cent share in the country’s gross exports in 2019.  Data from the Gem and Jewellery Institute of Thailand (GIT) showed that overall gem and jewellery exports (excluding gold) rose 6.68 per cent in the first nine months of 2019 from 2018. Shipments to major markets such as Hong Kong and the US however fell by 3.93 per cent and 7.98 per cent, respectively, due to global economic and political challenges such as the US-China trade war and the social unrest in Hong Kong.  Weighing in on these developments, industry stakeholders identified major issues that could affect Thailand’s jewellery sector moving forward. Trade war The protracted US-China trade row as well as a strong Thai baht could pose further threats to gemstone traders and jewellers. Any development on this front is being monitored by the jewellery trade. Prida Tiasuwan, founder of Thailand-based Pranda Group, said a massive trade diversion will likely boost Thai exports to the US. “China has a lot of empty capacity due to business loss with the US, and will be hungry to go for other markets such as Europe, particularly for silver jewellery. What we produce for the US is very different from what’s intended for the European market. This means we have to re-evaluate our stock in terms of gemstone colour and sizes. The transition in 2020 will be immense.” Despite slower export growth in 2020 due to continued market volatility, industry leaders remain positive, citing trade redirection, particularly in emerging markets. Jeffrey Bergman of 8 th Dimension Gems said traders are optimistic about expanding their customer base in China amid the economic slowdown since there is still huge growth potential in this sector. Henry Ho, president of the Jewelry Trade Center (JTC) in Bangkok, commented, “The overall global economy is sluggish and Bangkok is no exception. The industry is going through a transformative process with increased competition and shrinkage. Creativity, innovation, technology and specialisation are key to driving stronger growth.” Lab-grown diamonds Duangkamol Jiambutr, director of GIT, noted that lab- grown diamonds, which had gained popularity among young consumers in the past year, will slowly replace demand for mined diamonds in some jewellery sectors. JTC’s Ho echoed this sentiment, saying that non- traditional stores and newcomers in the business will use lower-priced lab-grown stones over natural melee diamonds since it’s more profitable. He added that some buyers prefer “bling and affordability” and opt for fashion pieces as opposed to fine jewellery. He also said Thailand could become an alternative diamond hub in Asia owing to political challenges in Hong Kong. Tiasuwan meanwhile stated that lab-grown diamonds, which are less expensive and can be available in different colours, may also affect the coloured gemstone sector. “We should adopt the diamond industry’s approach that natural coloured gemstones are not infinite. Gemstone industry players have to come together and promote natural gemstones as a whole,” he added. Tightening supply The Thai industry now mostly relies on imported coloured gemstones. According to Chanthaburi- based gemstone manufacturer and trader Phuket Khunaprapakorn, the sector faces global shortage of raw materials. “With growing demand for rubies, sapphires and emeralds outstripping supply, customers are adjusting their buying behaviour. Many will continue to buy and hold on to their goods.” Bergman pointed out that Chinese jewellers are realising that they cannot expand their retail sales due to lack of supply unless they start promoting colour- and clarity-enhanced rubies and sapphires. Since treated emeralds are widely accepted in the trade, he said “it is only logical and practical to apply the same standards to rubies and sapphires.” Social responsibility, traceability and transparency As consumers continue to value products from responsible sources, companies are obliged to adopt fair and ethical practices to stay competitive and increase customer confidence. GIT said it will incorporate blockchain technology in its gemstone testing to provide traceability beginning 2020. Tiasuwan of Prada meanwhile remarked that many companies in Thailand have partnered with the Responsible Jewellery Council (RJC) and adopted