Competitive Position of Thailand’s
Jewelry Industry
Thai Farmer’s Research Center
May 2002
Competitive Position of Thailand’s Jewelry Industry
The purpose of this report is to make publicly available some charts and tables that may be
informative or helpful while formulating strategies related to the gems and jewelry industry. The
charts and tables refer to jewelry exports to different parts of the world, and focus in particular on
the United States, Japan, and major markets in Europe. The following charts show both Thai
market share over time, and growth of imports in various gem and jewelry sectors.
Each of the following graphs has two parts:
1) Market share from Thailand and her major competitors
2) The total value of imports into the importing country.
By using these two parts, the following information may be obtained.
Growth by Sector - Useful to see what sectors are growing rapidly. The graph in the upper right
hand corner of each chart shows total imports of that product over a number of years. If a certain
product, such as semi-precious gems, is growing rapidly, it will be evident in that part of the chart.
Market Share over Time – Useful for determining our competitiveness by sector, and for
designing government and industry strategy. The main body of each chart shows the market share
of exports from Thailand and from other competing countries for a given sector. Market share for
each year is calculated so that we can see whether our market share is increasing or decreasing. If
Thailand is doing well in a sector such as silver, or rubies and sapphires, it will be evident from this
section.
Imports of Thai Products – Useful for tracking the value of exports over time. By taking the Thai
market share for a given year and multiplying it by the Total Imports for that year, it is possible to
approximate the value of Thai imports of a certain sector for a certain year. So for instance, if
Thailand’s US market share for silver jewelry in 2001 was about 28 percent, and Total Imports of
silver jewelry into the US was valued at 597 million dollars, Thai exports of silver jewelry to the
US would be about: .28*597 = 167 or about 167 million dollars. In this case Thailand has a large
market share of a smallish market. The value of exports to the US from other countries can also be
calculated.
The charts are based on data from 1993 until 2001. Generally the top 10 competitors as of 2001 are
shown, but if the chart can be expanded slightly to include Thailand, the chart may contain as many
as 15 competitors.
The products covered in each chart are those given by the included HS code. For the sake of
brevity or clarity, in some cases the title of the chart refers to only the major product or products
covered under that HS code. Meanwhile, a variety of minor products may actually be included
which have little effect on the total. Although there may be some objection to this strategy, it was
felt that this would give a better feel for what the category represented.
The report is divided into three sections representing the USA, Japan and Europe. The USA section
begins with charts of the major classifications, followed by tariff information, and then detail tables
for some sub-sectors. The Japanese section is structured so that the detail tables are together with
the major classifications since longer time series were often available for the detailed data. The
European data only looks at the major classifications. There is more detailed information available
about European costume jewelry, but it was not included because of space considerations.
Competitive Position of Thailand’s Jewelry Industry
2
Summary Tables Showing Market Share in Some Broad Categories in the US
Gold jewelry is the biggest precious gem and jewelry category, and is larger than all other
categories combined. Thailand has been doing well in gold jewelry since the economic crisis, with
market share now at about ten percent, up from near 5 percent in 1998. The loss of market share
from Italy hides continued dominance in gold chains. China is growing more quickly than we are
and India is also a strong competitor.
Market Share of US Imports of Gold Jewelry, 1996-2001
Hs711319
40%
US Mil$
6,000
35%
5,000
30%
3,000
25%
1,000
Size of Market
4,000
2,000
3,338
3,837
4,312
3,245
1996
1997
1998
1999
4,876
4,704
2000
2001
0
20%
15%
10%
5%
ea
K
or
ep
R
D
om
in
i
ca
n
rk
Tu
C
an
ad
a
ey
l
g
Is
r
ae
na
C
hi
g
on
1997
K
1996
H
on
ai
la
nd
Th
di
a
In
Ita
ly
0%
1998
1999
2000
2001
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
3
Thailand has long been a market leader in silver jewelry, but the loss of GSP benefits for most (>
18$/dozen) silver jewelry has left us with merely stable market share in the US. China is an
enormous threat. Indian exports are also doing well, but they are starting from a low base.
Market Share of US Imports of Silver Jewelry, 1996-2001
Hs711311
35%
US Mil$
700
Size of Market
600
30%
500
400
300
25%
200
394
487
529
555
1997
1998
1999
621
597
2000
2001
100
20%
0
1996
15%
10%
5%
1996
ad
a
Po
C
an
la
nd
ai
n
Sp
H
on
g
K
In
on
g
di
a
a
es
i
In
do
n
ic
o
ex
M
C
hi
na
ly
Ita
Th
ai
la
nd
0%
1997
1998
1999
2000
2001
Source: TFRC, USITC
Thailand has maintained a stable presence in the US imports of gemstones with its dominance of
the ruby and sapphire markets. Indian exports are rising rapidly which is a result of dominance in
the so called semi-precious gemstones. Israel is doing well with emeralds, but not in other
categories. Colombian exports are mainly emeralds.
Market Share of US Imports of Gemstones, 1996-2001
Hs7103
30%
US Mil$
800
700
600
500
400
300
200
100
0
25%
20%
532
15%
1996
Size of Market
635
615
667
711
1997
1998
1999
2000
572
2001
10%
5%
m
y
gd
o
U
ni
te
d
G
K
in
er
m
an
l
B
ra
zi
ka
iL
Sr
itz
Sw
H
on
an
la
n
d
el
ra
er
K
g
Is
on
g
a
bi
om
In
di
a
C
ol
Th
ai
la
nd
0%
1996
1997
1998
1999
2000
2001
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
4
Costume jewelry - Thailand lately has shown high growth rates in this low value, high employment
sector. As is clear, China dominates this sector completely due to price, though jewelry with a nice
fashion sense can survive in many countries.
Market Share of US Imports of Costume Jewelry, 1996-2001
Hs7117
70%
US Mil$
700
Size of Market
600
60%
500
400
300
50%
462
464
493
546
1996
1997
1998
1999
200
619
655
2000
2001
100
40%
0
30%
20%
10%
1997
1998
ce
Ph
Fr
ili
p
an
s
pi
ne
ly
Ita
on
K
g
H
on
Th
1996
g
di
a
In
ai
la
nd
ic
o
ex
M
Ta
iw
an
ea
K
or
C
hi
na
0%
1999
2000
2001
Source: TFRC, USITC
Our diamonds are almost entirely sent to other countries for reshipment, so we barely appear on this
chart. The close relationship between the US and Israel supports the high level of diamond trade
that flows from there.
Market Share of US Imports of Diamonds, 1996-2001
Hs7102
US Mil$
50%
40%
30%
Size of Market
6,625
7,635
8,522
1996
1997
1998
Em
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
d
60%
12,093
9,929
1999
2000
10,656
2001
20%
10%
1996
ai
la
nd
Th
ad
a
C
an
nc
e
Fr
a
U
ni
te
d
A
ra
b
itz
er
la
n
si
a
te
d
Sw
R
us
m
K
in
K
g
U
ni
H
on
gd
o
on
g
a
A
fr
ic
di
a
So
ut
h
In
m
gi
u
B
el
Is
ra
el
0%
1997
1998
1999
2000
2001
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
5
Jewelry and the US GSP
Gold and silver jewelry (HS 7113) exported to the US are increasing brought in under the
Generalized System of Preferences (GSP) program designed to help developing countries.
Thai Jewelry Imports to the US with and without GSP
700
600
Not GSP
182
200
500
400
186
300
200
249
250
291
467
425
307
GSP
100
106
66
119
1996
1997
1998
0
GSP
1999
2000
No program claimed
2001
Source: TFRC, USITC
The above table hides the fact that SILVER jewelry mostly enters the US WITHOUT GSP benefits,
while GOLD jewelry enters WITH benefits. That factor alone probably explains most of why gold
jewelry is doing well while silver jewelry is not. See tables below for details.
Chinese Jewelry does not receive US GSP benefits in any category, yet is still doing well.
THAI EXPORTS - Share under US GSP Program
7103
Value US Mil$
Gemstones
7103
Grow th Rate
(free anyway)
Silver Jewelry
(lost GSP for silver > 18$/doz)
Gold Jewelry
(regained GSP for gold jewelry)
Imitation Jewelry
(cheapest types free anyway)
1996
1997
1998
1999
2000
133
147
143
153
175
2001
141
11%
-3%
6%
14%
-19%
7103
% GSP
0%
0%
4%
5%
1%
0%
7103
% Not GSP
100%
100%
96%
95%
99%
100%
7103
Market Share
24.9%
23.1%
23.3%
22.9%
24.6%
24.7%
711311
Value US Mil$
122
148
153
160
175
171
711311
Grow th Rate
22%
3%
5%
9%
-3%
711311
% GSP
80%
35%
7%
22%
22%
21%
711311
% Not GSP
20%
65%
93%
78%
78%
79%
711311
Market Share
30.9%
30.5%
28.9%
28.9%
28.2%
28.6%
711319
Value US Mil$
232
478
711319
Grow th Rate
711319
% GSP
711319
% Not GSP
97%
94%
50%
18%
14%
10%
711319
Market Share
7.1%
6.2%
5.6%
7.7%
9.2%
10.2%
7117
Value US Mil$
21
7117
Grow th Rate
7117
% GSP
7117
% Not GSP
7117
All Jewelry & Precious Stones 71
3%
208
215
332
449
-10%
4%
54%
35%
6%
6%
50%
82%
86%
90%
22
22
19
18
22
9%
-3%
-12%
-5%
18%
91%
95%
94%
91%
84%
81%
9%
5%
6%
9%
16%
19%
Market Share
4.5%
4.8%
4.4%
3.5%
3.0%
3.3%
Value US Mil$
555
557
566
704
869
840
0%
2%
24%
24%
-3%
58%
71
Grow th Rate
71
% GSP
24%
17%
26%
48%
51%
71
% Not GSP
76%
83%
74%
52%
49%
42%
71
Market Share
3.3%
3.0%
2.6%
2.9%
2.9%
3.3%
Data Source: USITC, Prepared by Thai Farmers Research Center
Competitive Position of Thailand’s Jewelry Industry
6
In the following tables, tariff rates for Thailand and some other countries are given for each Jewelry
category. A zero tariff rate may be due to the GSP or to a variety of other US trade agreements.
Competitive Position of Thailand’s Jewelry Industry
7
Details about US GSP (or other tariffs) for Jewelry from Thailand and competing
nations
HTS Number
Current
Since
Country
(7113)
Tariff (%) (at least)
Silver rope, curb, etc. in continuous lengths, whether or not plated/clad with other precious metal, suitable for jewelry manufacture
Value (US Th $) Thailand
142
World
4,785
MS Share in Year 2000
3.0%
HS71131110 Canada
0 Jan-99
HS71131110 China
6.3 Jan-99
HS71131110 Dominican Rep
0 Jan-99
HS71131110 Hong Kong
6.3 Jan-99
HS71131110 India
0 Jan-99
HS71131110 Israel
0 Jan-99
HS71131110 Italy
6.3 Jan-99
HS71131110 Korea
6.3 Jan-99
HS71131110 Mexico
0 Jan-99
HS71131110 Thailand
0 Jan-99
HS71131110 Turkey
0 Jan-99
Silver articles of jewelry and parts thereof, nesoi, valued not over $18 per dozen pieces or parts
Value (US Th $) Thailand
42,969
World
88,423
Share in Year 2000
48.6%
HS71131120 Canada
0 Jan-99
HS71131120 China
13.5 Jan-99
HS71131120 Dominican Rep
0 Jan-99
HS71131120 Hong Kong
13.5 Jan-99
HS71131120 India
0 Jan-99
HS71131120 Israel
0 Jan-99
HS71131120 Italy
13.5 Jan-99
HS71131120 Korea
13.5 Jan-99
HS71131120 Mexico
0 Jan-99
HS71131120 Thailand
0 Jan-99
HS71131120 Turkey
0 Jan-99
Silver articles of jewelry and parts thereof, nesoi, valued over $18 per dozen pieces or parts
Value (US Th $) Thailand
132,196
World
527,940
Share in Year 2000
25.0%
HS71131150 Canada
0 Jan-98
HS71131150 China
5.0 Jan-98
HS71131150 Dominican Rep
0 Jan-98
HS71131150 Hong Kong
5.0 Jan-98
HS71131150 India
0 Jan-98
HS71131150 Israel
0 Jan-98
HS71131150 Italy
5.0 Jan-98
HS71131150 Korea
5.0 Jan-98
HS71131150 Mexico
0 Jan-98
HS71131150 Thailand
5.0 Jan-98
No GSP
HS71131150 Turkey
0 Jan-98
Precious metal (o/than silver) rope, curb, etc. in continuous lengths, whether or not plated/clad precious metal, for jewelry manufacture
Value (US Th $) Thailand
567
World
65,975
Share in Year 2000
0.9%
HS71131910 Canada
0 Jan-95
HS71131910 China
7.0 Jan-95
HS71131910 Dominican Rep
0 Jan-95
HS71131910 Hong Kong
7.0 Jan-95
HS71131910 India
0 Jan-95
HS71131910 Israel
0 Jan-95
HS71131910 Italy
7.0 Jan-95
HS71131910 Korea
7.0 Jan-95
HS71131910 Mexico
0 Jan-95
HS71131910 Thailand
0 Jan-95
HS71131910 Turkey
0 Jan-95
Gold rope necklaces and neck chains
Value (US Th $) Thailand
54
World
40,190
Share in Year 2000
0.1%
HS71131921 Canada
0 Jan-99
HS71131921 China
5.0 Jan-99
HS71131921 Dominican Rep
0 Jan-99
HS71131921 Hong Kong
5.0 Jan-99
HS71131921 India
0 Jan-99
HS71131921 Israel
0 Jan-99
HS71131921 Italy
5.0 Jan-99
HS71131921 Korea
5.0 Jan-99
HS71131921 Mexico
0 Jan-99
HS71131921 Thailand
0 Jan-99
HS71131921 Turkey
0 Jan-99
Competitive Position of Thailand’s Jewelry Industry
Details about US GSP (or other tariffs) for Jewelry from Thailand and competing nations
Gold mixed link necklaces and neck chains
Value (US Th $) Thailand
676
World
70,373
Share in Year 2000
1.0%
HS71131925 Canada
0 Jul-00
HS71131925 China
5.8 Jul-00
HS71131925 Dominican Rep
0 Jul-00
HS71131925 Hong Kong
5.8 Jul-00
HS71131925 India
0 8/22/01 GSP reinstated
HS71131925 Israel
0 Jul-00
HS71131925 Italy
5.8 Jul-00
HS71131925 Korea
5.8 Jul-00
HS71131925 Mexico
0 Jul-00
HS71131925 Thailand
0 Jul-00
HS71131925 Turkey
0 Jul-00
Gold necklaces and neck chains (o/than of rope or mixed links)
Value (US Th $) Thailand
25,787
World
923,769
Share in Year 2000
2.8%
HS71131929 Canada
0 Jan-97
HS71131929 China
5.5 Jan-97
HS71131929 Dominican Rep
0 Jan-97
HS71131929 Hong Kong
5.5 Jan-97
HS71131929 India
0 22-Aug-01 GSP reinstated (Last revoked in 7/14/98)
HS71131929 Israel
0 Jan-97
HS71131929 Italy
5.5 Jan-97
HS71131929 Korea
5.5 Jan-97
HS71131929 Mexico
0 Jan-97
HS71131929 Thailand
0 Jan-97
HS71131929 Turkey
5.5 1-Jul-01 GSP Revoked
Precious metal (o/than silver) clasps and parts thereof
Value (US Th $) Thailand
567
World
33,936
Share in Year 2000
1.7%
HS71131930 Canada
0 Jan-99
HS71131930 China
5.8 Jan-99
HS71131930 Dominican Rep
0 Jan-99
HS71131930 Hong Kong
5.8 Jan-99
HS71131930 India
0 Jan-99
HS71131930 Israel
0 Jan-99
HS71131930 Italy
5.8 Jan-99
HS71131930 Korea
5.8 Jan-99
HS71131930 Mexico
0 Jan-99
HS71131930 Thailand
0 Jan-99
HS71131930 Turkey
0 Jan-99
Precious metal (o/than silver) articles of jewelry and parts thereo, whether or not plated or clad with precious metal,nesoi
Value (US Th $) Thailand
421,464
World
3,741,552
Share in Year 2000
11.3%
HS71131950 Canada
0 Jan-98
HS71131950 China
5.5 Jan-98
HS71131950 Dominican Rep
5.5 Jan-98
No GSP
HS71131950 Hong Kong
5.5 Jan-98
HS71131950 India
0 8/22/01 GSP Reinstated
HS71131950 Israel
0 Jan-98
HS71131950 Italy
5.5 Jan-98
HS71131950 Korea
5.5 Jan-98
HS71131950 Mexico
0 Jan-98
HS71131950 Thailand
0 7/14/98 GSP Reinstated
HS71131950 Turkey
5.5 6/30/98
No GSP
Base metal clad w/precious metal, rope, curb & like articles in continuous lengths, suitable for use in jewelry manufacture
Value (US Th $) Thailand
0
World
703
Share in Year 2000
0.0%
HS71132010 Canada
0 Jan-94
HS71132010 China
7.0 Jan-94
HS71132010 Dominican Rep
0 Jan-94
HS71132010 Hong Kong
7.0 Jan-94
HS71132010 India
0 Jan-94
HS71132010 Israel
0 Jan-94
HS71132010 Italy
7.0 Jan-94
HS71132010 Korea
7.0 Jan-94
HS71132010 Mexico
0 Jan-94
HS71132010 Thailand
0 Jan-94
HS71132010 Turkey
0 Jan-94
8
Competitive Position of Thailand’s Jewelry Industry
9
Details about US GSP (or other tariffs) for Jewelry from Thailand and competing nations
Base metal clad
Value (US Th $)
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
HS71132021
Base metal clad
Value (US Th $)
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
HS71132025
Base metal clad
Value (US Th $)
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
HS71132029
Base metal clad
Value (US Th $)
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
HS71132030
Base metal clad
Value (US Th $)
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
HS71132050
w/gold rope necklaces and neck chains
Thailand
0
World
57
Share in
Canada
0 Jan-99
China
5.8 Jan-99
Dominican Rep
0 Jan-99
Hong Kong
5.8 Jan-99
India
0 8/22/01 GSP reinstated
Israel
0 Jan-99
Italy
5.8 Jan-99
Korea
5.8 Jan-99
Mexico
0 Jan-99
Thailand
0 Jan-99
Turkey
0 Jan-99
w/gold mixed link necklaces and neck chains
Thailand
0
World
645
Share in
Canada
0 Jul-00
China
5.8 Jul-00
Dominican Rep
0 Jul-00
Hong Kong
5.8 Jul-00
India
0 8/22/01 GSP reinstated
Israel
0 Jul-00
Italy
5.8 Jul-00
Korea
5.8 Jul-00
Mexico
0 Jul-00
Thailand
0 Jul-00
Turkey
0 Jul-00
w/gold necklaces and neck chains, nesoi
Thailand
44
World
1,180
Share in
Canada
0 Jan-99
China
5.2 Jan-99
Dominican Rep
0 Jan-99
Hong Kong
5.2 Jan-99
India
0 8/22/01 GSP reinstated
Israel
0 Jan-99
Italy
5.2 Jan-99
Korea
5.2 Jan-99
Mexico
0 Jan-99
Thailand
0 Jan-99
Turkey
0 Jan-99
w/precious metal clasps and parts thereof
Thailand
0
World
427
Share in
Canada
0 Jan-99
China
5.8 Jan-99
Dominican Rep
0 Jan-99
Hong Kong
5.8 Jan-99
India
0 Jan-99
Israel
0 Jan-99
Italy
5.8 Jan-99
Korea
5.8 Jan-99
Mexico
0 Jan-99
Thailand
0 Jan-99
Turkey
0 Jan-99
w/precious metal articles of jewelry and parts thereof, nesoi
Thailand
420
World
11,785
Share in
Canada
0 Jan-99
China
5.2 Jan-99
Dominican Rep
0 Jan-99
Hong Kong
5.2 Jan-99
India
0 Jan-99
Israel
0 Jan-99
Italy
5.2 Jan-99
Korea
5.2 Jan-99
Mexico
0 Jan-99
Thailand
0 Jan-99
Turkey
0 Jan-99
Year 2000
0.0%
Year 2000
0.0%
Year 2000
3.7%
Year 2000
0.0%
Year 2000
3.6%
Competitive Position of Thailand’s Jewelry Industry
10
Details about Competition in the Silver Jewelry Category
In silver chain, we have GSP benefits and pay zero tariffs. Countries who must pay tariffs of 6.3%
ad valorem include Italy, Germany, and China. This category is small, almost beneath concern.
Market Share of US Imports of Silver Chain, 1996-2001
Hs71131110
80%
US Mil$
14
Size of Market
12
70%
10
8
60%
12
6
4
50%
6
6
7
1997
1998
1999
2
5
4
2000
2001
0
40%
1996
30%
20%
10%
1996
1997
1998
1999
2000
ai
la
nd
na
Th
Po
C
hi
la
n
d
y
er
m
an
a
G
Tu
B
ol
rk
iv
i
ey
ad
a
C
an
ic
o
M
ex
di
a
In
Ita
ly
0%
2001
Source: TFRC, USITC
In Silver Jewelry <18$/doz, we have US GSP benefits and China does not. Countries on this list
with duty free status include India, Indonesia, Dominican Republic, Mexico, Mauritius, Turkey.
Other countries on this list pay 13.5 percent! (Italy, China, Hong Kong) With (GSP) protection
from China we are competing very strongly, even against other countries with zero tariffs.
MS of US Imports of Silver Jewelry <18$/doz, 1996-2001
Hs71131120
60%
US Mil$
100
Size of Market
80
50%
60
84
88
81
1999
2000
2001
40
40%
20
59
49
34
0
30%
1996
1997
1998
20%
10%
1996
1997
1998
1999
2000
2001
K
on
g
ey
rk
Tu
H
on
g
M
au
rit
iu
s
o
ic
ex
M
D
om
in
ic
an
R
ep
a
do
ne
si
na
di
a
In
ly
Ita
C
hi
In
Th
ai
la
nd
0%
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
11
In Silver Jewelry >18$/doz, we do NOT have US GSP benefits nor does China. This category
accounts for most silver jewelry imports into the US. Countries on this list with duty free status
include Mexico, Indonesia, India, Poland and Canada. Other countries on this list pay 5 percent ad
valorem and include Italy, Thailand, China, Hong Kong, and Spain. Without a tariff differential we
cannot compete with China. China, however, is doing fine even with the 5% tariff against others.
MS of US Imports of Silver Jewelry >18$/doz, 1996-2001
Hs71131150
35%
US Mil$
600
Size of Market
500
30%
400
300
25%
200
348
431
464
463
1997
1998
1999
528
512
2000
2001
100
20%
0
1996
15%
10%
5%
1996
1997
1998
1999
2000
ad
a
C
an
nd
la
ai
n
2001
Po
K
H
on
g
Sp
on
g
di
a
In
In
M
do
n
es
i
a
ic
o
ex
na
C
hi
ai
la
nd
Th
Ita
ly
0%
Source: TFRC, USITC
Details about Competition in the Gemstone Category
Note the amazing fall in demand for Rubies (Size of Market) over the past four years. We are doing
very well in terms of market share for rubies with no significant competition, but the overall market
is shrinking very
Competitive Position of Thailand’s Jewelry Industry
12
quickly.
Market Share of US Imports of Rubies, 1996-2001
Hs7103910010
70%
140
120
100
80
60
40
20
0
60%
50%
40%
US Mil$
Size of Market
119
111
110
86
85
1996
1997
1998
1999
68
2000
2001
30%
20%
10%
0%
)
ia
nd
nd
ng
ar
d
om
a
a
o
l
l
n
d
m
i
I
r
K
g
n
a
e
g
in
ya
n
itz
Th
K
o
(M
d
H
Sw
a
te
i
m
n
U
ur
B
1996
1997
l
ae
r
Is
1998
ce
n
a
ly
Ita
1999
Fr
2000
iu
lg
m
e
B
i
Sr
k
an
a
an
rm
L
y
e
G
Source: TFRC, USITC
2001
Sapphires enjoy much more stable demand, but the size of the market is not growing much. Again
Thailand enjoys more than 50 percent of the market share, with the only possible threat from Sri
Lanka, where exports have been increasing steadily.
Market Share of US Imports of Sapphires, 1996-2001
Hs7103910020
70%
US Mil$
200
60%
Size of Market
150
100
50%
50
40%
95
124
123
129
1997
1998
1999
156
122
0
1996
2000
2001
30%
20%
10%
1996
ly
Ita
y
nc
e
Fr
a
m
an
m
G
er
gi
u
ar
)
B
el
el
B
ur
m
a
(M
ya
nm
ra
Is
gd
om
di
a
K
in
In
U
ni
te
d
Th
ai
la
nd
Sr
iL
an
Sw
ka
itz
er
la
nd
H
on
g
K
on
g
0%
1997
1998
1999
2000
2001
Source: TFRC, USITC
Emeralds come mainly from South America. Originally they were mostly from Colombia, and
Colombian companies still control most of the marketing. The raw materials are more likely to
Competitive Position of Thailand’s Jewelry Industry
13
come from Brazil these days. Israel has recently invented a better technology for filling emerald
cracks on a more permanent basis, which is probably why their market share is increasing.
Market Share of US Imports of Emeralds, 1996-2001
Hs7103910030
45%
250
40%
200
US Mil$
Size of Market
150
35%
217
203
100
30%
195
183
176
1999
2000
141
50
25%
0
1996
1997
1998
2001
20%
15%
10%
5%
1996
1997
1998
1999
2000
bi
a
B
el
Za
m
gi
u
m
ka
iL
an
ai
la
nd
Sr
H
on
Th
g
K
on
g
B
ra
zi
l
nd
Sw
C
ol
itz
e
rla
In
di
a
Is
om
bi
a
ra
el
0%
2001
Source: TFRC, USITC
We do not export pearls in any significant quantity. Note that Japan is rapidly losing market
dominance with flat water pearls increasingly exported directly from Australia, and fresh water
pearls increasingly coming from China, via Hong Kong. French Polynesia exports refer to the
Tahitian black pearls.
Market Share of US Imports of Pearls, 1996-2001
Hs7101
70%
500
60%
400
50%
200
US Mil$
Size of Market
300
100
40%
238
265
280
1996
1997
1998
385
391
1999
2000
321
0
2001
30%
20%
10%
ai
la
nd
pp
in
e
Th
s
y
ili
Ph
G
er
m
an
nc
e
Fr
a
a
In
do
ne
si
d
er
itz
Sw
U
ni
te
d
la
n
m
gd
o
yn
e
K
in
si
a
na
ol
K
g
C
hi
Fr
P
on
g
lia
tr
a
H
on
A
us
Ja
pa
n
0%
1996
1997
1998
1999
2000
2001
Source: TFRC, USITC
Other gems, refers to semiprecious gems, or gems that are not rubies, sapphires, pearls or emeralds.
The market for these alternate gemstones is growing very quickly in the US. Meanwhile, India is
Competitive Position of Thailand’s Jewelry Industry
14
increasing its market share in this area extremely quickly. Why can’t Thailand cut more
semiprecious stones? This is a big competitive threat which we could turn into an opportunity.
Market Share of US Imports of Other Gems, 1996-2001
Hs710399
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
300
US Mil$
Size of Market
250
200
150
253
50
217
201
100
111
125
146
1996
1997
1998
2000
an
iL
Sr
gd
o
U
ni
te
d
K
in
2001
ka
1999
m
lia
tr
a
A
us
B
ra
zi
l
Ta
nz
an
ia
1998
na
C
hi
y
m
an
er
1997
G
ai
la
nd
g
on
K
g
H
on
Th
In
di
a
0
1996
1999
2000
2001
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
15
Details about Competition in the Gold Jewelry Category
Somehow Thailand has made it to fourth in this category. Perhaps we are benefiting from Turkey’s
misfortune in losing its GSP benefits for gold necklaces. Clearly Italy continues its dominance in
this category. About half of Italy’s gold jewelry exports are gold necklaces, which are competitive,
while their gold jewelry is less competitive.
Market Share of US Imports, 1996-2001
Gold Necklaces & Chains
HS 71131929
70%
US Mil$
1,000
Total Imports
800
60%
600
50%
400
663
750
1996
1997
931
933
924
1998
1999
2000
784
200
40%
0
2001
30%
20%
10%
1996
a
es
i
In
do
n
Fr
C
hi
an
na
ce
ru
Pe
di
a
In
g
on
K
H
on
g
ai
la
nd
l
ae
Th
Tu
Is
r
rk
Ita
ly
ey
0%
1997
1998
1999
2000
2001
Source: TFRC, USITC
This small category is a favorite with countries who have lost their GSP benefits for the more major
categories. (India – mid-98 to mid-2001, Turkey – mid-01 to present)
Market Share of US Imports, 1996-2001
HS 71131925
Gold Mixed Link Necklaces
90%
US Mil$
80
Total Imports
70
80%
60
50
70%
40
59
61
1996
1997
30
60%
72
65
70
72
1998
1999
2000
2001
20
10
50%
0
40%
30%
20%
10%
1996
1997
1998
1999
2000
2001
ia
bo
d
C
am
m
an
O
a
C
ol
om
bi
or
ua
d
Ec
ai
la
nd
Th
n
Pa
ki
st
a
di
a
In
el
ra
ly
Ita
Is
Tu
rk
ey
0%
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
16
It looks like some Indians have figured out how to make gold clasps. If they can do it, can’t
we?
Market Share of US Imports, 1996-2001
Gold Clasps
HS 71131930
80%
US Mil$
40
35
30
25
20
15
10
5
0
70%
60%
50%
40%
Total Imports
29
27
1996
1997
35
36
34
36
1998
1999
2000
2001
30%
20%
10%
1996
1998
1999
2000
ru
Pe
nd
rla
itz
e
au
Sw
M
G
1997
rit
iu
s
y
er
m
an
ra
el
Is
on
H
on
g
K
Ja
pa
g
n
ey
rk
Tu
In
di
a
Ita
ly
0%
2001
Source: TFRC, USITC
India has regained GSP benefits this year for Gold Jewelry, so they may be a big threat. China has
the fastest growth on this chart.
Market Share of US Imports, 1996-2001
Gold Jewelry
HS 71131950
35%
US Mil$
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
30%
25%
20%
Total Imports
2,293
2,354
2,659
1996
1997
1998
3,148
1999
3,742
3,721
2000
2001
15%
10%
5%
M
ex
i
co
ea
K
or
ep
R
ca
n
D
om
in
i
C
an
ad
a
el
g
Is
ra
na
C
hi
g
on
1997
K
1996
H
on
ai
la
nd
Th
di
a
In
Ita
ly
0%
1998
1999
2000
2001
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
17
Gold rope, either continuous or in necklaces seems to be mostly a Latin American phenomenon.
The following two charts both show small categories, probably supported by local fashions.
Market Share of US Imports, 1996-2001
Precious Metal Rope - Continuous
HS 71131910
70%
US Mil$
160
140
120
100
80
60
40
20
0
60%
50%
40%
Total Imports
145
109
1996
102
1997
1998
89
1999
66
60
2000
2001
30%
20%
10%
A
fr
So
ut
h
M
ex
ic
ic
a
o
y
G
er
C
an
In
m
an
di
a
ad
a
ia
B
ol
iv
ly
Ita
ey
Zi
Tu
rk
bw
m
ba
Pe
ru
e
0%
1996
1997
1998
1999
2000
60
US Mil$
2001
Source: TFRC, USITC
Market Share of US Imports, 1996-2001
HS 71131921
Gold Rope Necklaces
60%
Total Imports
50
50%
40
30
56
38
38
41
40
1997
1998
1999
2000
20
40%
33
10
0
30%
1996
2001
20%
10%
1996
1997
1998
th
A
fr
ic
a
ad
a
So
u
C
an
rk
ey
Tu
a
iv
i
B
ol
an
a
sw
B
ot
bw
e
m
ba
Zi
Ita
ly
el
Is
ra
Pe
ru
In
di
a
0%
1999
2000
2001
Source: TFRC, USITC
Competitive Position of Thailand’s Jewelry Industry
Japan
18
This chart makes it clear that Thailand’s competitive position in the Japanese market is NOT about
prices, as most imports come from more expensive developed countries. Japanese consumers care
about brands and fashion which probably explains the move towards jewelry from developed
countries. The jump in jewelry last year is likely due to the low returns on other forms of
investment during the 2001 recession and concerns about potential weakness in the Yen.
Market Share of Japanese Imports
Total Imports
15%
10%
5%
1994
1996
1997
IA
IN
D
IN
A
C
H
K
O
R
EA
A
IN
SP
IT
Z
ER
LA
N
D
IL
A
N
D
.
TH
A
N
G
1995
SW
1993
U
.S
.A
O
N
G
K
E
H
O
FR
A
N
C
IT
A
LY
0%
1998
1999
2000
2001
Source: Thai Farmers
Research Center, Japan
Customs
75.9
2001
52.7
2000
49.3
53.6
1998
1999
60.4
1997
74.3
1996
20%
70.0
1993
25%
56.4
40
20
0
30%
1995
Bil Yen
66.0
35%
ARTICLES OF JEWELLERY 80
60
OF GOLD
1994
711319029
Competitive Position of Thailand’s Jewelry Industry
19
30.0
2001
23.7
23.6
1999
2000
19.3
1998
1997 12.8
1996 9.2
1995 7.1
40%
1994 5.5
1993 6.2
The market for silver jewelry has been increasing steadily, as a cheaper alternative to gold. Silver
jewelry is more important as a proportion of total jewelry than in any other major market in this
report. Brands and fashion are again important, with the US taking the lion’s share. of the market.
Thailand lost market share through the early 1990s, and now just holds steady. Interestingly, there
is little sign of Chinese silver jewelry expanding as seen in other countries.
Market Share of Japanese Imports
Total Imports
- 711311000 ARTICLES OF
40 Bil Yen
30
JEWELLERY OF SILVER
60%
20
50%
10
0
30%
20%
10%
1994
1996
1997
1998
1999
2000
2001
M
K
IN
G
D
O
K
A
R
D
EN
M
N
G
K
O
N
G
IN
A
G
R
C
H
EE
C
E
E
H
O
1995
U
N
IT
ED
1993
FR
A
N
C
SP
A
IN
IL
A
N
D
TH
A
IT
A
LY
U
.S
.A
.
0%
Source: Thai Farmers
Research Center, Japan
Customs
China dominates the imitation jewelry market as it does in almost every country. Market share
jumped especially last year. Thailand’s market share is very small but is increasing slowly.
Market Share of Japanese Imports
- 7117 IMITATION JEWELRY 20
10
Total Imports
15.9
15.2
15.8
18.5
1998
1999
2000
2001
1998
1999
2000
Ta
iwa
n
Th
ail
Un
an
ite
dK d
ing
do
m
Ca
na
da
an
y
Ge
rm
Ita
ly
tes
ite
d
Sta
ou
th
Un
Ko
rea
,S
nc
e
0
Fra
Ch
ina
30%
25%
20%
15%
10%
5%
0%
Bil Yen
2001 Source: Thai Farmers Research, Japan Customs
Competitive Position of Thailand’s Jewelry Industry
20
Market Share of Japanese Imports
10
711719090 IMITATION JEWELLERY
EXCLUDING CUFFLINKS, NO PRECIOUS 5
50%
METAL
40%
30%
20%
10%
0%
Total Imports
Bil Yen
2.6 3.4 3.0 2.9 3.2 3.9 3.6 4.5 6.6
2001
1999
1997
ING
D
HO OM
NG
KO
NG
1995
D
UN
ITE
DK
TH
ISR
AIL
AN
AE
L
N
IW
A
TA
ITA
LY
.A.
U.S
CE
AN
1994
FR
KO
RE
1993
CH
INA
A
1993
0
2000
2001
Source: Thai Farmers Research
Center, Japan Customs
Market Share of Japanese Imports
Total Imports
20
15
10
5
0
7.7
8.7
1997
2001
11.0
1996
6.6
13.0
1995
15.0
1993
20%
9.5
25%
Bil Yen
1994
711719010 IMITATION JEWELLERY
PLATED WITH PRECIOUS METAL
30%
2000
1999
7.1
1998
1999
1997
8.6
1996
1998
1995
15%
10%
5%
1995
1996
1997
1998
1999
2000
2001
N
A
TA
IW
M
K
IN
G
D
O
ED
IL
A
N
D
TH
A
A
D
A
C
A
N
N
Y
M
A
G
ER
IT
A
LY
K
O
R
EA
IN
A
C
H
.
1994
U
N
IT
1993
U
.S
.A
FR
A
N
C
E
0%
Source: Thai Farmers
Research Center, Japan
Customs
Competitive Position of Thailand’s Jewelry Industry
21
9.3
2001
10.1
2000
11.6
1999
9.7
1998
1997
1996
17.2
28.6
29.2
1995
1994
1993
40%
34.9
35.0
Thailand is the leader in the market for rubies, sapphires and emeralds with more than 50 percent of
the market. Unfortunately the market has all but collapsed with imports less than 1/3 of their 1996
level.
Market Share of Japanese Imports
Total Imports
- 710391000 WORKED RUBIES 40 Bil Yen
30
SAPPHIRES AND EMERALDS
60%
20
50%
10
0
30%
20%
10%
1995
1996
1997
1998
1999
2000
2001
BE
LG
IU
M
L
BR
A
ZI
U
.S
.A
IT
Z
IN
D
.
ER
LA
N
D
IA
E
FR
A
N
C
N
K
A
A
SR
IL
K
N
G
H
O
1994
SW
1993
O
N
G
BI
A
LO
M
C
O
TH
A
IL
A
N
D
0%
Source: Thai Farmers
Research Center, Japan
Customs
The market for semi-precious stones also fell dramatically after 1996, but has been steady for a
number of years. The leading supplier is Hong Kong, almost certainly acting as a entrepot for Thai
stones as well as Chinese ones. Our market share was increasing but has fallen in each of the past
two
years.
Market Share of Japanese Imports
Total Imports
12.3
12.5
12.6
1999
2000
2001
11.1
1998
1997
16.1
22.1
19.6
1996
25%
1995
1993
30%
18.0
35%
1994
40%
Bil Yen
16.3
25
20
15
10
5
0
- 710399000 WORKED
SEMIPRECIOUS STONES
20%
15%
10%
5%
1996
1998
1999
2000
2001
EX
IC
O
M
A
N
K
A
.
SR
IL
U
.S
.A
IN
A
C
H
M
A
N
Y
L
IA
1997
G
ER
1995
BR
A
ZI
1994
IN
D
A
R
A
LI
IL
A
N
D
A
U
ST
1993
TH
A
H
O
N
G
K
O
N
G
0%
Source: Thai Farmers
Research Center, Japan
Customs
Competitive Position of Thailand’s Jewelry Industry
22
33.0
2001
26.4
23.1
1999
2000
23.1
1998
23.8
24.2
1996
1997
19.3
1995
40%
1994
1993 13.0
20.0
What did Thailand do to lose the market for platinum jewelry? In 1993 we were the leading
supplier to Japan, with a steady and drastic decline ever since. It is most likely this is due to VAT
taxes on platinum, which makes it inefficient to work with expensive metals here. The US has been
the clear winner.
Market Share of Japanese Imports
Total Imports
- 711319010 ARTICLES OF
40 Bil Yen
30
JEWELLERY OF PLATINUM
70%
20
60%
10
0
50%
30%
20%
10%
1995
1997
1998
1999
M
ED
K
IN
G
D
O
IA
IN
D
IN
A
IT
A
LY
SW
1996
2000
U
N
IT
1994
C
H
N
G
K
SP
H
O
1993
IT
ZE
R
LA
N
D
TH
A
IL
A
N
D
O
N
G
A
IN
E
FR
A
N
C
U
.S
.A
.
0%
Source: Thai Farmers
Research Center, Japan
Customs
2001
137.0
147.3
128.9
117.6
1998
1999
2000
2001
236.2
173.8
1997
25%
1996
0
223.1
30%
1994
100
214.0
35%
1993
200
1995
NONINDUSTRIAL, WORKED
40%
240.4
The diamond import market has been decreasing for years. Japanese are buying more diamonds
directly from India, as well as from Israel, while Belgian sales are slumping. Thailand is a small
but steady supplier in this slumping market.
Market Share of Japanese Imports
Total Imports
710239000 DIAMONDS,
300 Bil Yen
20%
15%
10%
5%
1994
1995
1996
1998
1999
2000
2001
H
ER
LA
N
D
S
IA
N
R
U
SS
A
R
A
LI
A
U
ST
ER
LA
N
D
IT
Z
SW
1997
N
ET
1993
IL
A
N
D
.
TH
A
U
.S
.A
O
N
G
K
H
O
N
G
LG
IU
M
BE
IS
R
A
EL
IN
D
IA
0%
Source: Thai Farmers
Research Center, Japan
Customs
Competitive Position of Thailand’s Jewelry Industry
23
Tahitian pearls seem to be losing their lustre, while Australian south seas pearls are imported in
increasing numbers. Imports from China are down, but imports from Hong Kong’s are up, and it is
likely that the Chinese fresh water pearls are coming in that way.
Market Share of Japanese Imports
Total Imports
40
Bil Yen
20
33.9
36.5
35.2
29.1
1998
1999
2000
2001
0
Fre
nc
h
Oc
ea
nia
Au
str
ali
a
Ind
on
es
ia
Ho
ng
Ko
ng
Ch
i
Ph na
ilip
p
Un ines
ite
dS
t
Co ates
ok
Isla
nd
s
Vie
tna
m
My
an
ma
r
50%
40%
30%
20%
10%
0%
- 7101 PEARLS, NATURAL OR
CULTURED, NOT STRUNG
1998
1999
2000
2001 Source: Thai Farmers Research, Japan Customs
Competitive Position of Thailand’s Jewelry Industry
Japanese Jewelry Tariffs, 2001
Developed countries
(WTO1)
Pearls
Free
Diamonds
Free
Gems
Free
Silver Jewelry
6.2
Gold Jewelry
6.2
Imitation Jewelry
5.6
Platinum Jewelry
6.2
Less Developed
Countries (WTO2)
Free
Free
Free
5.2
5.4
3.7
5.2
24
Preferential
Free
Free
Free
2.08 or free
2.08 or free
0.74 or free
2.08 or free
Thailand falls under the Less Developed Countries (WTO2) section for all products. There is also a
5 percent consumption tax that must be paid.
Competitive Position of Thailand’s Jewelry Industry
25
Europe
Europe is the second biggest market for Thai jewelry after the US. Although data for the
European Union as a whole are available, they are not timely since Eurostat must wait for reports
from all of its member countries, and because all official documents must be issued in many
languages simultaneously. In this report data is given for the four biggest countries in Europe
separately. These four countries make up about 60% of the total European market for jewelry. Half
of the rest (20% of European imports) goes to Switzerland, but since Switzerland has quite a small
population (7 million), the majority of its jewelry imports are probably re-exported.
The tables in the Europe section are arranged as follows:
Gold Jewelry
 British
 German
 French
 Italian
Silver Jewelry
 British
 German
 French
 Italian
European Jewelry Imports from the World
Million Euro
British
German
French
Gold
1391 (86%) 515 (62%) 581 (74%)
Silver
73 (5%)
136 (16%) 56 (7%)
Imitation
160 (10%) 181 (22%) 153 (19%)
Total
1624
832
790
in 2000
Italian
235 (69%)
38 (11%)
67 (20%)
339
Source: Thai Farmers Research Center after Eurostat and HM Excise data
Notes:
** In those cases in which Sterling has been changed to Euro, the conversion rate used was
.61 GBP = 1 EUR which is approximately the exchange rate for 2000.
** In some cases, the UK appears as one of the exporting countries to itself. That is because the
United Kingdom is actually made up of four countries - England, Scotland, Wales and Northern
Ireland – so that it is possible to have international trade WITHIN the UK. This paper will consider
them as a single group.
European Jewelry Tariffs, 2001
Conventional
Pearls
Free
Diamonds
Free
Gems
Free
Silver Jewelry
2.5
Gold Jewelry
2.5
Imitation Jewelry
4.0
GSP
Free
Free
Free
< 2.5
< 2.5
<4
Thailand does NOT receive GSP benefits (since 1998), unlike many other developing countries.
Tariffs are based on the CIF value, not on the FOB value as in US. (That is, tariffs are charged on
the value of the merchandise including insurance and freight, not just on the invoice value of the
product when shipped from, e.g. Thailand)
Competitive Position of Thailand’s Jewelry Industry
Exporters to Europe should be aware of the high VAT rates which all jewelry imports must pay:
VAT rates by country are as follows:
VAT rates in the EU
Standard
VAT*
Reduced
VAT*
Austria
20%
10%
Belgium
21%
12%
Denmark
25%
Finland
22%
17%
France
19.60%
5.50%
Germany
16%
7%
Greece
18%
8%
Iceland
24.50%
Ireland
21%
10%
Italy
20%
9%
Luxembourg
15%
6%
Netherlands
19%
6%
Norway
23%
Portugal
17%
Spain
16%
7%
Sweden
25%
12%
EU Member
Switzerland
United Kingdom
4-5%
7.50%
2%
17.50%
0-5%
Source: Trade Information Center, US Dept of Commerce
Jewelry is subject to the general VAT which is applied on the CIF value of the goods PLUS any
tariffs. Reduced VAT are only for some necessities including foodstuffs, electricity, heat, lumber,
books, etc.
Domestic producers also have to pay VAT, so that the price differential between domestic
production and imports is not too great. However, the high cost for all jewelry probably
discourages consumption.
26
Competitive Position of Thailand’s Jewelry Industry
27
Gold Jewelry
Mil Euro
Gold Jewelry
1600
1400
1200
1000
800
600
400
200
0
Import Value in 2000
20%
17.7%
18%
16%
14%
12%
10%
7.3%
8.5%
8%
6%
3.6%
World
Thailand
Thai Share
4%
2%
0%
British
German
French
Italian
Source: TFRC, Eurostat, HM Excise
The British purchase by far the most gold jewelry of the major European markets. Even excluding
internal trade within the UK (20-25%) the British are clearly the leading country for gold jewelry
imports. Unfortunately, Thailand has only a small share (3.6%) of this market. Thailand is much
more successful in Germany.
The British are buying mostly from Switzerland (may include re-exports from Thailand), from the
US and from Italy. India also has a much greater share of this market than Thailand does, probably
due to post-colonial connections.
Over the past four years, Thailand’s market share has shown an overall increasing trend, except in
France where it is decreasing. The gold jewelry market is growing most quickly in France and in
Italy. Overall, the market grew 20 percent since 1998.
The market for gold jewelry in Europe is roughly 8 times as big as the market for silver jewelry, or
four times as big as for imitation jewelry. However it must be recognized that gold jewelry is much
more valuable, with gold roughly 100 times as valuable as silver. Therefore, in terms of quantity
we can estimate that roughly 12 times more silver jewelry is sold than gold jewelry. The ratio for
costume jewelry will be much higher with volumes 100s or 1,000s of times higher.
Competitive Position of Thailand’s Jewelry Industry
28
The biggest exporter to the UK is itself - an oddity which is possible because the UK is made up of
four smaller countries. Although England, Wales, Scotland and Northern Ireland use the same
passport, are considered as separate countries. The mix of big (developed country) exporters
suggest that brands may be important.
Market Share of BRITISH Imports
1999
2000 2001 Est
2000
.E.
ba
i
(U.
A
Ch
ng
K
Du
Ho
1999
)
1998
ina
862.4
Th
ail
an
d
869.2
on
g
nc
e
Fra
Ind
ia
Ita
ly
1998
1,190.7
1,134.9
Source: Thai Farmers Research,
HM Customs & Excise
Un
ite
d
Kin
gd
om
Sw
itz
erl
Un and
ite
dS
tat
es
30%
25%
20%
15%
10%
5%
0%
Total Imports
Mil UK
1,500
1,000
500
0
71131900 GOLD JEWELLERY AND
PARTS THEREOF
2001
Germany is Thailand’s best gold jewelry market in Europe. Thai market share has increased in
each of the past two years, although the overall market has stagnated. The recession in Germany
has kept demand for most categories of jewelry weak, with silver jewelry performing best.
Market Share of GERMAN Imports
458.3
492.2
514.7
409.2
1998
1999
2000
2001 Est
mi
...
Un
ite
d
Ar
ab
E
on
g
ng
K
Sta
Ma
lay
sia
Total Imports
Ho
Un
ite
d
Ind
ia
y
Tu
rke
ina
Ch
Th
ail
an
d
Sw
itz
erl
an
d
Ita
ly
40%
30%
20%
10%
0%
Mil Euro
tes
600
400
200
0
71131900 GOLD JEWELLERY AND
PARTS THEREOF
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
29
Thai gold jewelry exports to France have been increasing slowly, but not nearly as fast as the
market for gold jewelry imports overall, resulting in falling Thai market share.
Market Share of French Imports
71131900 GOLD JEWELLERY AND
PARTS THEREOF
50%
40%
30%
20%
10%
0%
1,000 Mil Euro
500
Total Imports
406.6
469.5
581.3
696.9
1998
1999
2000
2001 Est
an
y
Ge
rm
Sp
ain
Th
ail
an
d
Ma
uri
tiu
s
Vie
tna
m
Un
ite
dS
tat
es
Kin
gd
om
ina
Ch
ite
d
Un
Sw
itz
erl
an
d
Ita
ly
0
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat
Italy is the world’s biggest exporter of gold jewelry, so it is not surprising that their imports of gold
jewelry are low. Rapidly rising imports from Turkey may suggest subcontracting of gold chain
work by Italian companies. Strong trade between France and Italy in many categories suggests
similarities in fashion tastes.
Total Imports
151.4
159.2
234.6
279.2
1998
1999
2000
2001 Est
1999
2000
Sp
ain
Sta
ite
d
Un
1998
Mil Euro
Th
ai
Un
ite land
dK
ing
do
Ho m
ng
Un
K
ite
d A ong
rab
Em
i...
tes
y
Tu
rke
nc
e
Fra
Sw
itz
erl
an
d
40%
30%
20%
10%
0%
300
200
100
0
el
71131900 GOLD JEWELLERY AND
PARTS THEREOF
Isr
a
Market Share of ITALIAN Imports
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
30
Silver Jewelry
Mil Euro
Silver Jewelry
160
140
120
100
80
60
40
20
0
Import Value in 2000
60%
50.6%
50%
40%
31.1%
28.4%
30%
28.1%
20%
World
Thailand
Thai Share
10%
0%
British
German
French
Italian
Source: TFRC, Eurostat, HM Excise
Thailand is the world’s biggest exporter of silver jewelry, and is the largest exporter to each of
Europe’s four major markets. Germany, again, is Thailand’s largest customer, although market
share is highest in Britain. Market share has been roughly stable or increasing slightly in all four of
the markets.
Overall the market for silver jewelry has been doing very well, increasing significantly in all four
markets. The recession in late 2000 and 2001 may have encouraged this trend, as consumers
shifted from gold jewelry. Overall, silver jewelry imports into these four markets rose an
astonishing 76 percent since 1998, in Euro terms.
Germans are by far the biggest users of silver jewelry, with double the imports of Britain or France.
As a big exporter of silver jewelry, again Italian imports are the lowest of the four.
Competitive Position of Thailand’s Jewelry Industry
31
Thailand dominates the market for silver jewelry imports in Britain with more than 50 percent of
the market for the last four years. China’s market share is rising but with less than 5 percent of the
market, the threat seems far off.
Market Share of BRITISH Imports
45.4
48.1
1998
1999
2000
2001 Est
on
g
ng
K
Ho
Po
lan
Ge
rm
d
39.2
Sp
ain
36.9
an
y
tes
Sta
ina
Total Imports
Un
ite
d
Ch
Me
xic
o
Ind
ia
Ita
ly
60%
50%
40%
30%
20%
10%
0%
Th
ail
an
d
Mil UK
60
40
20
0
71131100 SILVER JEWELLERY AND
PARTS THEREOF
Source: Thai Farmers Research,
HM Customs & Excise
In Germany, the threat from China is much more apparent, with China approaching Thai market
share. China’s market share was growing extremely quickly until 2000, but fell off slightly last
year. Between them, Thailand and China account for about 60 percent of the German import
market.
1998
1999
2000
2001
Market Share of GERMAN Imports
71131100
40%
SILVER JEWELLERY AND
PARTS THEREOF
Total Imports
200
Mil Euro
100
83.8
106.9
136.1
145.7
1998
1999
2000
2001 Est
0
30%
20%
10%
1998
1999
2000
on
g
Sw
itz
erl
an
d
Ind
on
es
ia
Ne
the
rla
nd
s
Ho
ng
K
Ind
ia
d
Po
lan
tes
Un
ite
d
Sta
Ita
ly
ina
Ch
Th
ail
an
d
0%
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
32
In France, Italian silver jewelry is still quite popular, although market share has been falling in
recent years. Chinese market share is growing, but at about 6 percent, it is far behind Thailand’s
30+ percent in 2001.
Market Share of FRENCH Imports
71131100 SILVER JEWELLERY AND
PARTS THEREOF
Mil Euro
50
33.8
42.5
56.0
62.9
1998
1999
2000
2001 Est
1998
1999
2000
Sw ce
itz
erl
Un
an
ite
dK d
ing
do
m
Un
ite
dS
tat
es
Gr
ee
Sp
ain
Tu
nis
ia
Po
lan
d
Ch
ina
0
Ita
ly
Th
ail
an
d
35%
30%
25%
20%
15%
10%
5%
0%
Total Imports
100
2001 Source: Thai Farmers Research Center, Eurostat
In Italy, Chinese jewelry is growing very rapidly. As a fading major producer, it is very likely that
this represents outsourcing by Italian companies. At current growth rates, China’s market share
could overtake Thailand in 3 years.
Market Share of ITALIAN Imports
1999
2000
Total Imports
28.0
37.8
45.1
1998
1999
2000
2001 Est
on
g
ng
K
Ho
Ind
on
es
ia
Ma
uri
tiu
s
16.5
an
y
Ge
rm
Fra
nc
e
tes
Sta
Un
ite
d
Ind
ia
ina
Sw
itz
erl
an
d
Ch
Th
ail
an
d
30%
25%
20%
15%
10%
5%
0%
1998
Mil Euro
60
40
20
0
71131100 SILVER JEWELLERY AND
PARTS THEREOF
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
33
Imitation Jewelry
Imitation Jewelry
Import Value in 2000
200
5%
4%
3.8%
Mil Euro
150
4%
3.4%
3%
100
World
3%
2.4%
2.0%
2%
2%
50
Thailand
Thai Share
1%
1%
0
0%
British
German
French
Italian
Source: TFRC, Eurostat, HM Excise
The market for imitation jewelry in Europe is roughly twice the size in terms of value as the market
for silver jewelry. Most of the market is spread more or less evenly, between Britain, Germany, and
France. Interestingly, all of these four major markets also produce costume jewelry for export.
The costume jewelry market has been increasing well in Europe with a 47 percent increase over
1998 levels. However, exports in 2001 were not particularly higher than 2000 due to the recession.
China is by far the biggest producer of costume jewelry in the world and is the biggest player in all
but one of these markets. Thailand has shown small but growing market share in England and
Germany, stagnant market share in Italy and falling market share in France.
Competitive Position of Thailand’s Jewelry Industry
34
China dominates the UK costume jewelry market with market share now approaching 40 percent.
In second place, Korea is increasing its market share, as it its in most European markets. Thailand
has only a few percent of the market but has done well in recent years.
Market Share of BRITISH Imports
150
100
50
0
7117 IMITATION JEWELRY
40%
30%
Total Imports
Mil UK
71.7
75.0
99.3
104.9
1998
1999
2000
2001 Est
20%
10%
Ita
ly
Th
ail
an
d
Ge
rm
Cz
an
ec
hR y
ep
ub
lic
Ta
iwa
n
Ind
ia
ng
K
on
g
tes
Ho
Sta
ite
d
ou
th
Un
rea
,S
Ko
Ch
ina
0%
Source: Thai Farmers Research,
HM Customs & Excise
Austria was traditionally a key producer of costume jewelry for the European market, but now
Germany is the only country where it maintains its (diminishing) lead. Austria is losing out to
China.
1998
1999
2000
2001
Market Share of GERMAN Imports
- 7117 IMITATION JEWELRY 200
100
135.8
168.8
180.9
175.7
1998
1999
2000
2001 Est
nc
e
Fra
gd
om
Kin
Ita
ly
Un
ite
d
rla
nd
s
Th
ail
Un and
ite
dS
tat
es
Ne
the
ng
K
on
g
ou
th
Ho
Ko
rea
,S
ina
0
Ch
Au
str
ia
50%
40%
30%
20%
10%
0%
Total Imports
Mil Euro
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
35
China again. Austria second. Thailand fading.
Market Share of French Imports
- 7117 IMITATION JEWELRY 200
100
30%
25%
20%
15%
10%
5%
0%
Mil Euro
Total Imports
104.8
117.7
152.8
152.2
1998
1999
2000
2001 Est
1998
1999
2000
Ho
ng
K
on
g
Sp
ain
Be
lgi
Un
um
ite
dK
ing
do
m
Th
ail
an
d
ou
th
Ko
rea
,S
Ita
ly
an
y
Ge
rm
str
ia
Au
Ch
ina
0
2001 Source: Thai Farmers Research Center, Eurostat
The country with the most dramatic evidence of China’s ascendance in costume jewelry. The only
question is why did it take so long compared to in the US?
Market Share of ITALIAN Imports
7117 IMITATION JEWELRY
40%
Total Imports
100
Mil Euro
50
42.8
46.5
66.6
90.2
1998
1999
2000
2001 Est
0
30%
20%
10%
1998
1999
2000
tes
Sta
Un
ite
d
an
y
on
g
Ge
rm
Ho
ng
K
Sp
ain
Ind
Cz
i
ec
hR a
ep
u
Ko blic
rea
,S
ou
th
nc
e
Fra
str
ia
Au
Ch
ina
0%
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
36
Rubies, Sapphires, and Emeralds
Precious Gems
Import Value in 2000
120
50%
47.1%
Mil Euro
45%
42.9%
100
40%
35%
80
30%
60
25%
20%
40
20
World
Thailand
Thai Share
15%
10.6%
10.1%
10%
5%
0
0%
British
German
French
Italian
Source: TFRC, Eurostat, HM Excise
France is by far the biggest European importer of Rubies, Sapphires and Emeralds. Thailand does
not appear to have a large share of the French market, although it is likely that more than half of
these gems do actually originate from Thailand, and have been re-exported through Switzerland. In
fact, careful attention to the statistics show almost no precious gems coming from India and Sri
Lanka, competitors for the ruby and sapphire market. Likewise, emerald exporters such as
Columbia and Israel do not have a large market share. In sum, it is likely that more than half of this
category are rubies and sapphires originating from Thailand.
Other than in France, the precious gem market has been mostly stagnant in Europe. French demand
has grown significantly since 1998, resulting in an aggregate increase in the four biggest markets of
27 percent since 1998, but the change is almost entirely due to a single market.
Competitive Position of Thailand’s Jewelry Industry
37
Switzerland appears to be acting as a re-exporter for both the British and French markets. Thai
market share is doubtless much higher.
Market Share of BRITISH Imports
1998
1999
1998
1999
2000
2001 Est
lom
b
Sin
ga
po
re
41.6
Ind
ia
29.9
ia
45.1
Co
ng
K
Ho
2000
42.0
on
g
nc
e
Fra
Sw
itz
erl
Un
an
ite
dK d
ing
do
m
Un
ite
dS
tat
es
Th
ail
an
d
Sri
La
nk
a
60%
50%
40%
30%
20%
10%
0%
Total Imports
Mil UK
60
40
20
0
71039100 RUBIES, SAPPHIRES AND
EMERALDS, WORKED
Source: Thai Farmers Research,
HM Customs & Excise
2001
Demand for precious gems is low and has been stagnant. Germans are more likely to import gems
directly from Thailand than through a re-exporter.
Market Share of GERMAN Imports
26.2
1998
1999
2000
2001 Est
Kin
Br
lom
b
Un
ite
d
Be
lgi
um
26.6
gd
om
26.7
azi
l
29.8
Co
La
nk
a
Sri
on
g
Ho
ng
K
Ind
ia
Th
ail
an
d
Sw
itz
erl
Un and
ite
dS
tat
es
50%
40%
30%
20%
10%
0%
Total Imports
Mil Euro
ia
32
30
28
26
24
71039100 RUBIES, SAPPHIRES AND
EMERALDS, WORKED
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
38
More than 60 percent of precious stones come from Switzerland, which is not know for processing
stones itself. Is France the only place in the world where demand for rubies and sapphires is
increasing?
Market Share of French Imports
Mil Euro
1998
1999
2000
Total Imports
106.8
97.6
1998
1999
2000
2001 Est
Br
Ge
rm
azi
l
69.8
an
y
59.5
Sw
itz
erl
an
d
Th
ail
an
d
Be
lg
Un ium
ite
dS
Un
tat
e
ite
dK s
ing
do
m
Sri
La
nk
a
Ho
ng
Ko
ng
70%
60%
50%
40%
30%
20%
10%
0%
150
100
50
0
Ita
ly
71039100 RUBIES, SAPPHIRES AND
EMERALDS, WORKED
2001 Source: Thai Farmers Research Center, Eurostat
Italians appear to import their precious gems directly. Many are probably used as raw materials in
Italian jewelry for export.
Market Share of ITALIAN Imports
71039100 RUBIES, SAPPHIRES AND
EMERALDS, WORKED
Mil Euro
Total Imports
26.9
39.5
28.7
1998
1999
2000
2001 Est
Sw ia
itz
erl
Un and
ite
dS
tat
es
Au
str
ia
Ho
ng
Ko
ng
Ge
rm
an
y
Fra
nc
e
21.4
lom
b
Co
Ind
ia
el
Isr
a
Th
ail
an
d
60%
50%
40%
30%
20%
10%
0%
60
40
20
0
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
39
Semi-Precious Stones
Semi-Precious Gems
Import Value in 2000
30
25%
Mil Euro
25
20
19.9%
19.5%
20%
17.5%
15%
15
10%
9.2%
10
World
Thailand
Thai Share
5%
5
0
0%
British
German
French
Italian
Source: TFRC, Eurostat, HM Excise
Demand for semi-precious gems has been growing more steadily and more widely than demand for
precious gems in Europe. Aggregate statistics, however, do not show much difference with 27
percent growth since 1998. In terms of value, total imports of semi-precious gems are worth about
half as much as precious gems. Together precious and semi-precious gems are worth about as
much as imports of silver jewelry.
The biggest markets are Germany , Italy, and Britain in that order. It appears that only precious
gems will satisfy the French, while other countries use more semi-precious stones.
Thailand’s market share has generally been increasing in this category except for in Germany. The
swift increase in Indian exports in this category is not as dramatic as in US statistics, but India is
ahead of Thailand in most of these markets with positive change in its market share. The large
quantity of exports from Germany into other main markets suggests that Germany is acting as a reexporter in this category.
Competitive Position of Thailand’s Jewelry Industry
40
Switzerland as a re-exporter? Indian market share is increasing steadily. Thailand was doing very
well until this past year.
Market Share of BRITISH Imports
20
71039900 SEMI-PRECIOUS STONES,
WORKED
10
35%
30%
25%
20%
15%
10%
5%
0%
Total Imports
Mil UK
15.9
15.0
13.4
18.7
1998
1999
2000
2001 Est
1999
2000
ina
Ch
Th
ail
an
d
Sri
La
Un
nk
ite
dK a
ing
do
m
Sw
ed
en
on
g
ng
K
tes
1998
Ho
ite
d
Sta
an
y
Un
Ge
rm
Ind
ia
Sw
itz
erl
an
d
0
Source: Thai Farmers Research,
HM Customs & Excise
2001
Thailand fell from number one supplier this past year.
Market Share of GERMAN Imports
71039900 SEMI-PRECIOUS STONES,
WORKED
25%
20%
15%
10%
5%
0%
Mil Euro
20
25.9
24.0
28.4
29.7
1998
1999
2000
2001 Est
1998
1999
2000
ia
Sw
itz
erl
an
d
str
al
Au
ina
Ch
Ca
na
da
Ind
ia
Th
ail
Un and
ite
dS
tat
es
Ho
ng
Ko
Un
n
ite
dK g
ing
do
m
0
azi
l
Br
Total Imports
40
2001 Source: Thai Farmers Research Center, Eurostat
Competitive Position of Thailand’s Jewelry Industry
41
Thailand increasing nicely.
Market Share of French Imports
ng
K
on
g
azi
l
Total Imports
5.8
7.3
10.3
11.5
1998
1999
2000
2001 Est
Vir
Ho
Br
Sw
itz
erl
an
d
Th
ail
an
d
Ind
ia
Ge
rm
an
y
35%
30%
25%
20%
15%
10%
5%
0%
Mil Euro
Ita
gin
ly
Isl
an
ds
(...
Be
lgi
um
Un
ite
dS
tat
es
15
10
5
0
71039900 SEMI-PRECIOUS STONES,
WORKED
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat
Thailand is neck and neck with India.
Market Share of ITALIAN Imports
1998
1999
2000
2001 Est
Kin
Un
ite
d
Sta
ite
d
Un
Ke
ny
a
24.3
gd
om
26.5
tes
17.5
ina
18.3
Ch
azi
l
Br
Th
ail
an
d
Ho
ng
Ko
ng
Sw
itz
erl
an
d
Ind
ia
Ge
rm
an
y
50%
40%
30%
20%
10%
0%
Total Imports
Mil Euro
30
20
10
0
71039900 SEMI-PRECIOUS STONES,
WORKED
1998
1999
2000
2001 Source: Thai Farmers Research Center, Eurostat