Thailand’s Tempting Treasures
The variety and splendor of Thailand’s gem and jewelry industry were showcased from September 7 to 11, 2018 at the 62nd edition of the Bangkok Gems & Jewelry Fair (BGJF).
By Cynthia Unninayar
By Cynthia Unninayar
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Visiting the Bangkok fair is always a treat, as the creative variety of jewelry and gemstones is remarkable. From accessible ceramic and enameled pieces to designer silver to high-value gold, to sumptuous colored gemstone and diamond jewelry, there is always something of interest. This past September was no exception.
And, in addition to visiting the innovative jewels of Thai creators of the present day, I was among a small group of journalists invited to visit the National Museum in Ayutthaya to see some of the golden splendors of a time gone by, in addition to visiting the ruins of Thailand’s former capital. Also during the Bangkok fair, I stayed a few extra days in the city in order to attend GIT 2018, a day-long conference with a number of speakers discussing a variety of gemstone-related topics. Sponsored by the Gem & Jewelry Institute of Thailand, this event followed the one held in 2016. An Important Sector The gem and jewelry industry in Thailand is one of the most important sectors in the nation’s economy, employing more than 1.2 million people, and generating more than US$12.8 billion in 2017. A witness to the economic importance of the industry, the BGJF is organized and supported by Thailand’s Department of International Trade Promotion (DITP) under the Ministry of Commerce. “In the first seven months of 2018, from January to July 2018, exports of gems and jewelry, excluding unwrought gold, saw an increase of 6.93% compared to the same period in the previous year. Moreover, the industry is projected to continue its steady growth into the coming year,” explained Mr. Sontirat Sontijirawong, Minister of Commerce of Thailand. In 2017, high-growth products were gemstones (+12.42%), pearls (+28.34%), silver jewelry (+14.74%), precious metal and metal-plated items (+90.19%). Products that saw a negative growth were diamonds, gold jewelry, imitation jewelry, and other precious metal pieces. It should also be noted that a significant share of Thailand’s gem and jewelry industry is third-party production that Thai manufacturers carry out for many foreign brands, including a number of well-known global luxury brands. These pieces are mainly crafted in gold, diamonds and gemstones, but the nation is also the world’s second largest supplier of silver jewelry, just behind India. “The 62nd Bangkok Gems and Jewelry Fair is an important marketing tool to promote the industry’s capabilities and support Thai manufacturers, including SMEs, to expand their businesses abroad while networking and trading with partners from Thailand and other countries,” explains Mr. Sontirat Sontijirawong, Minister of Commerce of Thailand. “ He continued that the BGJF offers new brands and designers the “opportunity to showcase their unique creations to target buyers from around the world,” adding that “the number of exhibitors joining the Bangkok Gems & Jewelry Fair as well as those expressing interest in participating in the fair has been rising every year.” Sontijirawong also noted that the industry has been experiencing robust growth. “In the first seven months of 2018, from January to July 2018, exports of gems and jewelry, excluding unwrought gold, saw an increase of 6.93% (to US$7 billion) compared to the same period in the previous year. Moreover, the industry is projected to continue its steady growth into the coming year.” In 2017, high-growth products were gemstones (+12.42%), pearls (+28.34%), silver jewelry (+14.74%), precious metal and metal-plated items (+90.19%). Products that saw a negative growth were diamonds, gold jewelry, imitation jewelry, and other precious metal pieces. It should also be noted that a significant share of Thailand’s gem and jewelry industry is third-party production that Thai manufacturers carry out for many foreign brands, including a number of well-known global luxury brands. These pieces are mainly crafted in gold, diamonds and gemstones, but the nation is also the world’s second largest supplier of silver jewelry, just behind India. An Apt Theme This edition of the BGJF took place under the theme “Heritage & Craftsmanship,” with the aim of highlighting Thailand’s cultural heritage. Beautiful Thai designs with international touches shone a spotlight on Thailand’s position as a major player in the global gems and jewelry arena. One of the most spectacular examples of Thai craftsmanship was the extravagant fashion show entitled the “Queen of Jewelry.” The show was dedicated to the royal projects of Her Majesty Queen Sirikit, who dedicated her life to promoting arts and culture as well as helping her subjects generate income. The fashion show highlighted jewelry from Thai manufacturers, which showcased exquisite collections in high fashion, from gold jewelry made by artisans using ancient techniques of jewelry making to contemporary gold and silver jewelry, many including precious colored gemstones with intricate designs. Special Sections As in previous years, the “Niche Showcase” featured five niche jewelry trends: Metro Men—jewelry for the modern man as well as LGBT individuals; The Moment—jewelry for special occasions such as weddings and auspicious events; Beyond Jewelry—Lifestyle and decorative products with precious stones and materials; Heritage & Craftsmanship—jewels and products that mix heritage and craftsmanship such as those featuring reinterpreted folk wisdom of the four regions of the country into four contemporary jewelry collections; and Spiritual Power—pieces that reflect spiritual beliefs such as Thiti Jewelry combining ancient beliefs related to silver and pearl jewelry in contemporary design. A special “Jewelers” exhibition featured a number of Thai designers who participated in the Designers’ Room and Talent Project, with a range of creative products. The “Creative Jewelry Project Exhibition” showcased 40 designers of whose innovative techniques attracted much attention, as did those in the special “Innovation and Design Zone,” with products made from non-traditional elements. Finally, an expanded “New Faces” section provided an opportunity for 150 new exhibitors from 18 provinces in Thailand to show off their creative works. Some 914 exhibitors showcased their wares at the show, with 800 of those from Thailand. Many exhibitors told me that the show was slow, while others seemed happy with results, both in terms of sales and contacts made. This seems to be the new norm for trade shows these days. The busiest booths were the gem sellers. Thousands of trade visitors from around the world visited the five-day show, which was opened to the public at large during the last two days. Show officials indicated that the reason for opening to the general public was two-fold. First, it allowed local people to see the creativity of Thai (and other) exhibitors, and secondly, some 20% of sales were generated during the final two days of the show. Tax Incentives Thailand’s gem and jewelry industry enjoys several tax advantages to help its competitiveness. A number of tax-free zones, such as Gemopolis, on the outskirts of Bangkok, house production facilities, where foreign companies benefit from a strong infrastructure, easy access to raw material suppliers and a highly skilled workforce. BGJF exhibitors are also exempt from paying the value-added tax (VAT) when importing their goods for the show. VAT is paid only after the show and only for products that are sold. This greatly eases the paperwork and costs for overseas exhibitors who import and then re-export their unsold products, which remain untaxed. To attract buyers, the BGJF also offers a variety of discounts on hotels, car rentals, restaurants and other amenities in Bangkok. (bkkgems.com) |