Rising oil prices impact Thai gems, jewellery exports; sellers advised to adapt to changing demands

Sumed Prasongpongchai, director of the Gem and Jewellery Institute of Thailand (GIT), said though 2023 initially showed growth in Thai gems and jewellery exports, the momentum has started slowing down. This slowdown can primarily be attributed to economic recovery hurdles like surging oil prices in vital export destinations.

To overcome this, gems and jewellery sellers should adapt to consumers’ changing demands and preferences, as well as find ways to eliminate obstacles in the buying process, he said.

In July, the export value of gems and jewellery (excluding gold) stood at US$585.66 million (20.84 billion baht), marking a marginal drop of 0.38%. This can be considered stable given the global economic and trade conditions. However, if gold is included, the export value of jewellery and gems dropped by 24.26% that month.

For the January-July period this year, the total export value of gems and jewellery (excluding gold) rose 7.76% at $4.78 billion. However, when gold is included, the total export value amounted to $8.17 billion, down by 16.47%.

Key export markets have shown mixed results during this period, with Hong Kong surging by 163.58%, Japan by 8.59%, Italy by 42.11%, the United Arab Emirates by 23.14%, and Singapore by 67.62%.

On the other hand, the United States witnessed a decline of 11.06%, Germany 48.49%, the United Kingdom 11.88%, Switzerland 7.75%, and India 61.72%.

With these market dynamics, business operators are advised to create more versatile product designs, including gender-neutral concepts and multi-purpose jewellery in line with changing consumer preferences.

They should also make the most of online platforms, especially those accessible via mobile phones, as that will be the fastest and best way to access consumers, Sumed said.