Silver or white-metal jewelry market has gain interested around the world due to the continuously increase in gold price that now become an economic investing indicator. Therefore, silver jewelry has turned to be a precious jewelry instead of gold. Moreover, the skills in producing Thai silver jewelry are agreed as a neat high quality standard for over a century
Currently, the demand of Thai silver jewelry has been increased among buyers all over the world according to the factors of our special delicate skills, high standard as comparable to the level of European design, and the advance innovative design. All things consider, Thailand has become the world leader of silver jewelry export in both plain silver jewelry and Gem set silver jewelry. In 2009, Thai silver jewelry export valued almost 1/4 of world value or about 53.072 millions US dollar. This value will still be expected to increase continuously as long as the increase of gold price. Thailand will be the leader in both US and EU markets.
Even though Thai silver jewelry exporting has been increased constantly, we still face a few strong competitors in the world market like China and India. Both countries have high competitive advantages such as labor intensive and advance technology in production, which allow them to offer cheaper products into the market. These situations are completely effect Thailand, especially in the lower end market segment. Moreover, other competitors in the middle and high end markets like Turkey, Mexico and Italy have developed their production technology and marketing strategies which will cause more pressure to Thai silver jewelry to compete in the world market.
Furthermore, Thai silver jewelry that has value over 18 US dollars per dozen (H.S. code 7113.11.50) is likely to be eliminated the Generalized System of Preferences (GSP) due to the high exporting value to US which almost reach the maximum value of 180 million US dollars. These are signs that show the decreasing in Thai silver jewelry export in the future.
However, Thailand still known and accepted as a delicated and high quality labor skills especially in the gem setting jewelry. Moreover, the high honesty in doing business is another main factor that help create higher image and reability than other competitors like China, India, and Sri Lanka.
The main factors that Thai jewelry producers need to improve are developing their own brands and designs to satisfy consumer behavior in each country, following fashion and trends, and partnering with world jewelry producers like China and India to gain competitive advantage in terms of material and labor cost.
Reference: Kasikorn Research Center, April 1, 2011