“The US is a market to watch for Thai exporters, as the country is a high-potential market with the highest total market value in the world.”
The DITP suggests that in entering the US jewelry market, Thai brands should look to cater to the younger generation, while collaborating with other designers or jewelry brands to keep things fresh and exciting.
Jewelry is making a comeback around the world. In 2017, the US imported US$59 billion of jewelry. With Thailand accounting for US$1.28 billion or only 2.2% of that figure, there is ample room for growth, especially through online sales targeted at the younger generation.
“The US is a market to watch for Thai exporters, as the country is a high-potential market with the highest total market value in the world. Moreover, the overall economy in the US has been exhibiting signs of improvement since 2017 with continued growth,” says Kwanapa Phivnil, Executive Director of the Thai Trade Center, Los Angeles.
The trade center has been promoting three highlight product groups from Thailand, which have a strong demand in the US, namely: food, focusing on innovative food products with added value such as organic food, ready-to-eat food and healthy food to penetrate millennials that will become the largest population group in ten years; fashion, such as clothing and jewelry; and entertainment and film.
“The overseas office is focusing on gems and jewelry products which is one of the fashion product categories that plays a huge part in exports from Thailand. On the other hand, Thailand is also a country with the 13th highest imports of gems and jewelry products from the USA,” Phivnil says.
According to industry reports from the US, gems and jewelry products with the highest demand are those that are easy to wear, able to match with daily outfits, and have a moderate price point. The target audience is younger buyers and workers – those with a medium-range purchasing power. With such a large population in this segment, price competition is high.
“The behaviour of US consumers has shifted from shopping at department stores to online shopping, especially on amazon.com. Many companies that sold through traditional channels have had to close down their businesses. Thus, gems and jewelry companies that are expanding to the USA must adapt to using online platforms,” says Phivnil.
She adds that another marketing technique is to collaborate with designers or jewelry brands in the US to co-manufacture products as the quality and design of Thailand’s jewelers are recognized worldwide. Companies will benefit from launching products at large trade shows such as JCK Las Vegas, one of the largest gems and jewelry shows in the US, to seek trading partners and business alliances.
Phivnil also reveals that on June 1 to 4, the DITP organized a roadshow to JCK Las Vegas to introduce the 62nd Bangkok Gems & Jewelry Fair with 50 Thai companies and brands taking part to demonstrate the strength of Thai gems and jewelry products, as well as showcasing Thailand’s gems and jewelry industry as a whole.
For more information, visit www.bkkgems.com
Words by Pimsirinuch Borsub