JNA Mar 2020

MARKET INTELLIGENCE 64 | JNA Mar/Apr 2020 a standard code of practice aimed at addressing sustainability issues. Anthony Brooke, vice president of the Thai Gem and Jewellery Traders Association, for his part, said the association is working with RJC and the World Jewellery Confederation or CIBJO to educate small and medium- sized enterprises in Thailand on social responsibility. Some however view this growing trend of social responsibility, traceability and transparency as challenging. For instance, the coloured gems supply chain is extremely fragmented and complex compared to that of diamonds, making blockchain implementation difficult. Brooke, who’s also CEO of gemstone miner Richland Resources, commented, “Blockchain is potentially good for large miners. Finding a method for small-scale miners to encompass issues such as costs and technology is a challenge.” Digital technology and online platforms Digital technology is at the forefront of transforming jewellery businesses, with a greater shift to social media and online platforms to market gems and jewellery. Technology-driven ecommerce has subsequently affected traditional retail stores, which find it hard to compete on all fronts. Omnichannel marketing will become even more important for the gem and jewellery business in the digital era, according to Jiambutr of GIT. She also emphasised using online marketing and payment to further adapt to consumers’ fast-paced lifestyles. Businesses will likewise have to differentiate themselves from the competition through unique gem and jewellery pieces that come with a story as millennials continue to search for greater personalisation. Auctions and tenders With tightening supply, tenders and auctions are likely to become an important avenue for traders to route their goods to the market. The International Chanthaburi Gems and Jewellery festival held its first seal-bid auction in 2019. Companies such as international diamond brokerage and tender house Bonas, which is currently building its credentials and expertise in the coloured gemstone sector, also held a tender in Bangkok and is scheduled to hold another one with support from the Department of International Trade Promotion of Thailand (DITP) and Asia Gem Center. DITP commented, “We expect that this activity will increase the number of new clients for both Bangkok Gems & Jewellery Fair and Bonas, and will also enhance the image of the gem and jewellery industry globally.” Novel coronavirus Amid a rosy outlook, recent events such as the novel coronavirus outbreak, which originated in Wuhan, China in late December 2019, could have potentially grave effects on the jewellery trade. Gary Roskin, executive director at International Colored Gemstone Association, said international trade shows in Hong Kong were postponed to later dates as exhibitors rushed to join alternative events to sustain sales. Airlines also cancelled flights to and from Hong Kong and China. Businesses with ties to China will still feel the impact of the coronavirus outbreak long after a cure is found, he added. Tiasuwan meanwhile cited fewer tourists in Thailand, with consumers around the world generally avoiding shopping districts. This however will bode well for online businesses. “In terms of manufacturing and export, China’s production base may be viewed as highly unstable, giving Thailand a chance to benefit from this business diversion,” he added. GIT, for its part, also raised concerns over the dwindling number of visitors from China and other countries in Thailand. Citing industry estimates, it said Thailand will lose roughly THB300 billion (around US$9.5 billion) in tourism earnings in the first half of 2020.  The number of foreign traders from China, Hong Kong and Europe, who deal with coloured stones in Chanthaburi also dropped. “Thai entrepreneurs are trying to manage their inventory and looking for ways to reduce the impact by offering mass-produced goods, cheaper prices and stocking high-value goods for possible sale in the future," GIT's Jiambutr added. Gemstones on display at the Chanthaburi Festival