MARKET WATCH 市场观察 JNA September/October 2024 | 55 9.28B 92.8亿 Projected jewellery sales in Southeast Asia in 2024, in US dollars, according to data and business intelligence firm Statista 根据数据和商业情报公司Statista预测的 2024年东南亚珠宝销售额 PNJ store in Vietnam 位于越南的PNJ店 As of June 30, 2024, the group has seven points of sales (POS) in Singapore, seven in Malaysia, three in Thailand, two in the Philippines, two in Vietnam and one in Cambodia. Earlier this year, Luk Fook Holdings (International) Ltd (Lukfook) also expanded its retail footprint in the region with the opening of its first store in Malaysia, a Lukfook Joaillerie in Kuala Lumpur. According to Lukfook Group Chairman and CEO Wong Wai Sheung, the group is always committed to exploring markets with growth potential. “Southeast Asia, with its booming tourism industry, offers an array of potential longterm investment opportunities. The new shop will enable the group to expand its POS footprint and enhance brand awareness in the Southeast Asian market,” he remarked. Lukfook first entered the Southeast Asian market in 2010. As of February 2024, it has a presence in Cambodia, Malaysia, the Philippines, Laos and Thailand. Vietnam prospects Gold jewellery is much favoured in Vietnam, according to Le Yen, vice president of the Vietnam Gemstone Jewelry & Arts Craft Association and vice chairman of the ASEAN Gems and Jewellery Trade Association (AGJA). “Diamond jewellery is also highly sought after by Vietnamese consumers. The advent of lab-grown diamonds has however affected market confidence in the natural diamond segment, particularly since we do not have a wellestablished certification institute to distinguish between the two,” she shared. Vietnamese jewellery conglomerate Phu Nhuan Jewelry Joint Stock Company (PNJ) is also seeing solid prospects in its local market. “Jewellery demand remains high because it is suitable for investment as well as for daily use,” the company told JNA. “High-end consumers in Vietnam look for products from large and reputable brands in the market. They increasingly gravitate towards jewellery with modern, sophisticated, creative and highly artistic designs.” This customer segment also pays greater attention to the product’s narrative, in-store displays and the skill and enthusiasm of sales associates. Upmarket consumers also demand after-sales policies that are commensurate with the value of their purchase. According to PNJ, Vietnam’s jewellery retail market saw a period of consolidation after the pandemic. A challenging business environment coupled with prolonged lockdowns from May to November 2021 led many retailers to leave the market or operate at a loss. “Economic and retail slowdowns coupled with plummeting consumer confidence posed major challenges post-pandemic. Although Vietnam’s mid-range and highend jewellery market holds room for growth, particularly after two years of market fluctuation with the departure of various smaller businesses and independent shops, there remains significant hurdles,” said PNJ. The group, which had dominated the jewellery market in major cities prior to the pandemic, has since been expanding its customer base to smaller provinces. “Additionally, new shopping habits driven by the pandemic have made online channels a popular platform for Vietnamese consumers, prompting us to introduce online shopping services across different digital platforms,” said PNJ. These include free shipping, fast deliveries within three hours and promotional programmes. Philippine strategies Jewellery retailers in the Philippines have also had to shift gears during the pandemic, introducing initiatives that have turned into valuable revenue streams to this day. Fine jewellery retail chain Karat World intensified its e-commerce activities by expanding its offerings online and established counters at warehouse clubs to catch foot traffic during the lockdowns. “Selling jewellery at warehouse clubs was truly an outof-the-box concept, one that won us a local retail award for innovation. We realised during the Covid-19 lockdowns that we had to be where the people were. At the time, they could only leave their residences to buy groceries, so that is where we went,” explained Felix Gorriceta III, president of Karat World. The company started working with S&R warehouse club and established a space with three to four counters in some of their branches. This enabled Karat World to move merchandise that was otherwise just stocked in its stores. These initiatives continue to bear fruit for the company. Online sales now account for 10 per cent of Karat World’s business, and Gorriceta aims to increase this to 15 per cent over time.
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