MARKET WATCH 市场观察 56 | JNA September/October 2024 And Karat World is now present in more than 10 S&R warehouse club branches across the country, with opportunities for expansion into more locations. “The fast-moving items at these outlets are earrings, pendants and necklaces that can be worn every day. We do not sell anything more than US$500 at these locations,” said Gorriceta. Local complexities Aside from international jewellery brands, the Philippine jewellery retail sector consists mostly of family-run chain stores, local neighbourhood jewellery retailers and a unique system of resellers who sell jewellery to individuals and accept instalment payments. Live selling of jewellery is also gaining traction. The last two business models are particularly popular, as many mass and middle-class consumers still find jewellery retail stores intimidating. At the same time, the country also has upper middle-class to high-end consumers and high-net-worth individuals who favour luxury jewellery. Karat World has more than 30 branches across the Philippines, with merchandise carefully curated for market preferences in each location. It caters largely to what Gorriceta calls the “mass-tige” market – mass consumers aged 21 to 45 who want some prestige in their lives. “Our tagline is 'You Deserve It' The rationale is that everyone deserves jewellery because they worked hard for it,” he explained. The company tailors its operations and business approach to Filipino societal norms. As many consumers find jewellery stores intimidating, Karat World ensures the design of its outlets is welcoming and its staff highly accommodating. It also takes a leaf from the attractive payment terms of the well-entrenched reseller system by offering special instalment packages for credit-card payments for its jewellery. Another Karat World brand is Jewelry Box, which is available in smaller cities. The merchandise mix in these stores is less extensive than at Karat World branches and feature mostly basic and classic gold jewellery pieces as opposed to diamond jewellery. Early this year, Karat World opened a 100-square-metre flagship store in One Ayala, an upscale mixed-use complex in Makati City, the country’s main business district. These premium stores, numbering three at present, carry more one-of-a-kind pieces and designer collaborations, catering to high-end customers. For its part, Ocampo’s Fine Jewellery caters largely to long-time patrons and, often, their children aged 30 and above. It has six branches in major cities in the Greater Manila area as well as over 20 in-store displays at key branches of its popular SilverWorks jewellery retail brand. Charles Chan, consultant for Ocampo’s Fine Jewellery, said, “We have always been positioned as a heritage brand with almost 100 years of retail and expert experience in the Philippine jewellery industry.” Consumer preferences Gemstones are the best-sellers at Ocampo’s Fine Jewellery, with Chan citing steady demand for its classic diamond double halos with either a sapphire or emerald centre stone. “High-end consumers account for 50 per cent to 70 per cent of our total sales. They gravitate towards our gemstone jewellery pieces, featuring diamonds with emeralds or sapphires. Gemstones have been our main point of differentiation from other brands for almost a century,” he noted. The Philippines is a gold-loving country hence gold pieces move well across chain stores and locations. At Ocampo's Fine Jewellery, lightweight options have become popular, along with easy-to-wear, bold earrings or necklaces that can be worn as everyday jewellery. Its original gold Gen Z consumers who shopped online for small jewellery items then are now upgrading to investment pieces. – Charles Chan, consultant for Ocampo’s Fine Jewellery, Philippines PNJ store in Vietnam 位于越南的PNJ店
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