China, particularly its younger consumers, represents a great market opportunity for Thai-manufactured coloured stones and silver jewellery as the country recovers from the coronavirus outbreak, a senior Thai official said.
Young Chinese consumers who prefer contemporary and modern styles are a key market segment, said Ms. Jeeranun Hirunyasumlith, Commercial Consul, Royal Thai Consulate General, Shanghai.
Various businesses in China, including those in the gems and jewellery sector, are gradually reopening while the Chinese public are returning to shops.
China is the world’s second largest jewellery market after the United States.
The majority of high purchasing power consumers live in major cities such as Beijing, Shanghai, Shenzhen and Guangzhou.
Gold is the most popular form of jewellery with Chinese consumers, as it can easily be converted into cash. Products with delicate designs are popular with younger Chinese consumers.
“Coloured stones, especially rubies and sapphires, are very popular amongst certain groups of people in China’s jewellery market due to their delicate design, durability and uniqueness,” Ms. Jeeranun said.
“Meanwhile, silver jewellery products with modern designs are becoming more popular with Chinese as gifts.”
According to the China Luxury Report 2019, sales of gems and jewellery in China reached 585 billion yuan in 2018.
The three main consumer groups were: those born in the 1980s (54%), those born between 1965 and 1979 (24%), and those born in the 1990s (22%).
Each generation reflects a different taste in jewellery.
Those born in the 1960s and 1970s place great importance on brand names, while approximately half of those born in the 1990s are content to try new brands so long as the products come in attractive designs and represent great value for money.
Ms. Jeeranun said that understanding markets and consumer needs, as well as choosing the right marketing strategies, were significant factors in achieving a successful business expansion into China’s jewellery market.
China is a huge market with high competition between local operators and global brands.
“Following the COVID-19 outbreak, Chinese consumers are more cautious with their spending,” Ms. Jeeranunthe said.
According to research from the Thai Ministry of Commerce, the value of Thailand’s gems and jewellery exports to China totalled 22.9 million U.S. dollars from January to March 2020, a drop of 80% compared with the same period last year.
Of this total, leading products, such as silver jewellery, totalled 20.4 million U.S. dollars, a 61% decline.
Regarding Thailand’s jewellery industry, the Bangkok Gems & Jewelry Fair (BGJF), organized by the Department of International Trade Promotion (DITP), Ministry of Commerce, is one of the vital marketing tools to demonstrate the potential and the strengths of Thailand’s gems and jewellery industry.
BGJF is regarded as significant international trading platform gathering local and foreign jewellery players to showcase their products while creating new opportunities for entrepreneurs to meet and trade with their potential partners from around the world.
The 66th Bangkok Gems & Jewelry Fair will be held from 7-11 September, 2020 at IMPACT Muang Thong Thani, Bangkok, Thailand.