Tuesday, 2 August 2011

Thailands Jewellery Industry Downfall? Why?

Thailand's Jewellery Industry has been hit hard since the Economic crisis in 2007. Even though political conditions in Thailand seem to get stable and the tourism industry just bouncing back, there hasnt been such a big  improvement in the Thai Jewellery Manufacturing. Why so?

I will give you my opinions on this. In 2007, when the economics crisis came about, it hit Thailand with double blows. As in 2008 the political situation was at its heights of worst condition ever. This did not do any good to the Jewellery Manufacturing Factories as most of them closed down, as the airports closed down for 2 days, and the when resumed, the airports had no traffic. Almost zero traffic.

Thailand's Jewellery is known for High quality of Jewellery, be it Silver or Gold. But when the local Thai businesses were hit, they closed down. And started to look for alternatives. Some shifted to India, and some to Vietnam. Producing High quality Silver Jewellery in India was a tough ask, and to be able to maintain it, was even harder, simply because the labour werent trained enough. Thus, most companies from Bangkok shifted to cities like Ho Chi Min City, and Hanoi city. Here, the quality was maintained at the standards of Thailands' expectation. The labour was trained, the land prices were cheap and had good land price increases after buying, and the best of all, the labour was almost 25% lesser than of Thailand's labour cost for manufacturing of Jewellery.

Hanoi City is now used for exporting as it is very close to China and it makes it a hub because of its location on the map of the world.

Now what does the future and present forecast about the future of Thailands Gems & Jewellery industry? The future holds stability of the Thai Jewellery, especially in Silver Jewellery. The traffic has picked up since 2008 because the recent elections has calmed things down, after a controvery sorrounding the count of votes. But as more traffic comes to Bangkoks Airport, the tourists will definitely have a very interesting shopping experience of Jewellery, because Jewellery, especially Silver Jewellery is one of the main items in their shopping list. And it is mainly the tourism industry that is driving the Jewellery companies incomes.

Anyways ending on a positive note, the traffic is back, and so it should drive local gemstone manufacturers sales higher than before. The business should pick up, we leave that on optimism.

Incase, there are any inquiries or any questions please dont hesitate in contacting us at Navneet Gems & Minerals.

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