The global gems & jewellery sector is passing through one of its most challenging phases. In the last over one year or so, Covid-related headwinds had adversely impacted the demand, even as the industry is looking for ways and means to keep itself afloat. While behaviour and preference pattern of consumers is under transition, world’s two largest gems & jewellery making countries, India and Thailand, are looking to collaborate to provide right value proposition and create the much needed traction in the global market. Efforts are on to promote alternative metals to gold, as the prices of yellow metal have moved beyond the affordable levels, even as new-gen consumers are keen to try out jewellery, designed aesthetically and looking appealing.
Experts are of the view that, in the new world order, after the change in US-China trade dynamics, countries like India and Thailand can come together and set up a strong platform, which can effectively explore the opportunities emerging in the US and EU markets, where international buying houses are now increasingly looking for non-China countries to meet their jewellery requirement. They also believe that there is scope for expanding the bilateral trade between India and Thailand.
According to the data released by the apex body, Gem & Jewellery Export Promotion Council (GJEPC), the gem & jewellery exports from India in 2020-21 witnessed a decline of 28.46 per cent to $25.31 billion. Meanwhile, Thailand’s exports of gem & jewellery have also dipped over 25 per cent in 2020, following Covid-related hurdles. Both the countries have recently initiated a series of measures to arrest this trend.
The Department of International & Trade Promotion (DITP), ministry of Commerce, Thailand, in association with other local trade and industry bodies, including Thai Silver Exporters Association, is organising the 66th Edition of Bangkok Gems & Jewelry Fair (BGJF), to be held virtually this time during 22-24 June 2021. There will also be special focus on silver jewellery which in recent years has made good progress.
Following the US and Hong Kong, this time round, this special edition of virtual fair is aimed at India which is one of Thailand’s main export markets, with an export value of $143.97 million during January-March 2021. Apart from silver jewellery and accessories, the Indian market is the third largest buyer of coloured gemstones from Thailand, due to its fine craftsmanship, competitive pricing and excellent quality. Pre-Covid, Thailand’s imports of gem & jewellery from India were $300 million annually, while exports to India were $600-700 million.
An online platform
“This event will feature products with latest innovation, many up-and-coming artisans and designers, exquisite pieces of the world’s top craftsmanship and nationally-renowned manufacturing companies as well. It will serve as an online platform for gems & jewellery trading and networking, where buyers and exporters from all over the world will be able to conduct businesses and build long-term trading relationships despite the Covid-19 restrictions,” says an official with Thailand’s DITP.
“The gems & jewellery industry in Thailand offers flexibility in terms of OEM services from sourcing, designing, packaging to manufacturing,” the official adds. “Buyers are able to address their demands, quality, quantities and budget, enabling it to be a major jewellery trading hub in Asia.”
The gems & jewellery industry in Thailand offers flexibility in terms of OEM services from sourcing, designing, packaging to manufacturing
There is unanimity in opinion within the two countries that the silver jewellery industries of both India and Thailand can collaborate on various fronts for mutual benefits. During the last few years, silver has been drawing the attention of buyers because it was more affordable than its counterpart, the yellow metal, and also because of its easier availability and better jewellery designs. In fact, India’s jewellery exporters are now focussing on silver, along with lab-grown diamonds, to offset the overall demand contraction in the gem & jewellery sector.
According to the data available with the GJEPC, the Indian silver jewellery industry saw the exports more than doubling to $1.7 billion in 2019-20 – up from $832 million 2018-19 – while India’s gross exports of gems & jewellery dipped by 10.19 per cent to $35.53 billion. During the first half of 2020-21 (April-September 2020), there was an 80 per cent growth in exports of silver jewellery to about $865 million, while India’s overall gross exports of gems & jewellery during the period declined 43 per cent to $8.48 billion.
“Silver jewellery is a sector where, despite the pandemic, the recovery has been faster,” affirms Suresh Kumar, joint secretary, ministry of commerce & industry, during GJEPC’s three-day virtual buyer-seller meet (VBSM) for silver and fashion & costume jewellery held recently. “At $865 million, India’s silver (plain and studded silver jewellery) export from April to September 2020 is almost 50 per cent of what was achieved during the last one year. Silver is cheaper and so the consumers are inclined to buy more, as it is the best performing commodity.”