MARKET INTELLIGENCE 市场情报 JNA May/June 2024 | 47 Rough and polished rubies from Veerasak Gems Co Ltd Veerasak Gems Co Ltd的红宝石原石和抛光红宝石 Coloured gemstone rings by Sofragem Co Ltd Sofragem Co Ltd的彩色宝石戒指 Growth markets A major manufacturing centre for rubies and sapphires that once counted China among its top markets, Thailand is increasingly seeing its goods heading to emerging and alternative destinations. China used to account for 35 per cent to 40 per cent of KO (Thai) Impex Co Ltd’s business. This has since shrunk to 20 per cent, according to its director Siddhant Garg. The company manufactures and wholesales rubies from Mozambique in commercial to good qualities, focusing primarily on calibrated sizes. “The Chinese market for rubies was booming before and even during the pandemic. In the last two years though, the drop in demand has been substantial due mainly to hefty price increases, at times reaching over 50 per cent,” he explained. Demand is now stronger from India, which has performed exceptionally well for the company in the last three years. Garg said his Indian clients have extremely specific sourcing requirements, favouring pink-red or red-pink rubies over extremely pink or extremely red ones. They also stick to their budget and predominantly purchase midrange goods. India is also showing much promise for Thailand’s silver jewellery sector, with exports increasing steadily in the past three years. In 2023, this reached US$208.68 million, more than double the values achieved in 2022. Limvatanayingyong said, “The Indian market currently requests for traditional Indian designs, most of which are derived from gold jewellery. There has however been a noticeable trend towards modern styles that cater to younger consumers.” BHC Diamonds (Thai) Co Ltd, which specialises in small diamonds, is examining fresh possibilities, too. Its core markets are the US, Belgium, France, Germany and the UK, with demand driven by consumer preferences for highquality gemstones in both traditional and contemporary jewellery designs. Thailand, Hong Kong, China, Vietnam and Australia likewise present significant opportunities due to rising affluence, changing consumer preferences and a growing demand for luxury goods. Further growth though lies in emerging luxury markets, shared BHC Diamonds Managing Director Bhavesh Gandhi. These include countries in Latin America; Southeast Asian nations such as Indonesia, Vietnam and Singapore; and Middle Eastern economies, namely the United Arab Emirates, Saudi Arabia and Turkey, which are experiencing rapid urbanisation and a growing middle class. “As disposable incomes rise and consumer preferences evolve, these markets present opportunities to tap into a growing demand for luxury goods, including natural diamonds,” Gandhi noted. Brand targets Changing market conditions have also led stakeholders in Thailand’s gem and jewellery industry to adjust their business strategies. Veerasak Gems, widely known for its top-quality rubies from Myanmar and Mozambique, has been expanding its client base and widening its portfolio. “Our reputation for supplying top-quality rubies stems from our ability to provide buyers with the rare gemstones they have been searching for in the market. We however offer the full range of stones, from midrange to high quality,” shared the company’s Chonlada Trirotanan. “Our Mozambique rubies are more high-end, but we also have a large variety of Burmese stones for clients to choose from.” For its part, Sofragem Co Ltd, which produces finely crafted coloured gemstone jewellery, pivoted to jewellery brands early in the pandemic when retailers, its main clientele at the time, closed down. “To survive, we quickly turned our attention to brands and were fortunate that some trusted us to develop their collections. Today, jewellery brands from Switzerland, the UK and the US are our primary customers, and business has been booming as they require consistent and steady production,” said General Manager Cedric Garnier. This year, Sofragem’s jewellery pieces for its brand clients mainly feature green and pink coloured gemstones such as emeralds, tsavorites, green tourmalines, pink sapphires and pink tourmalines. According to Garnier, jewellery brands tend to favour Thailand-based manufacturers due to the ease of production in the country. Thailand boasts skilled craftsmen, experienced goldsmiths, access to fine coloured gemstones
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