Swarovski to make Thailand its distribution base for stones
Firm prepares to cash in on AEC, which would give it greater access to Southeast Asian region and India.
Swarovski Gems, a branded subsidiary of Swarovski, plans to promote Thailand as its centre for distributing its gemstones and created stones, which are cut and polished in Austria, to jewellery manufacturers in Asean and India.
The firm aims to cash in on |the coming Asean Economic Community (AEC), which will allow for the free flow of jewellery components within the region once it becomes fully effective in 2015.
Thailand already has a free-trade agreement with India.
Kurt Zbinden, regional director for Southeast Asia and the subcontinent at Signity (Thailand), the local sales and marketing arm for Swarovski Gems' products, said the parent firm will use Thailand as a centre to distribute to manufacturers in Indonesia, Thailand, Malaysia, India and Sri Lanka, among other places.
Zbinden said Swarovski Gems officially entered the Thai market about two years ago.
"We see Thailand as one of the most important markets for gems and jewellery. Thailand is |the largest gems and jewellery producer in the world," said Zbinden.
He said Swarovski Gems supplies genuine gemstones and created stones to all the major gems and jewellery manufacturing markets around the world, including Hong Kong, China, Thailand, Taiwan, India, the US, Brazil, Italy and France.
Zbinden said Southeast Asia and India represent Swarovski Gems' largest market in terms of sales, contributing about 35 per cent of its business.
"We have enjoyed between 7 per cent and 10 per cent annual growth in Southeast Asia, lagging behind China and India, which has shown higher growth at 20 per cent and 30 per cent respectively due to their strong domestic consumption," he said.
Zbinden said almost 90 per cent of gems and jewellery produced in Thailand are for export, including to Europe, Asean, India, Dubai and other Middle East markets.
He said Thailand remains competitive for gems and jewellery manufacturing compared to China, which has been recognised as a production base for mass silver and mass gold products.
"The manufacturing costs between Thailand and China are not significantly different anymore. Thailand, however, has highly skilled labour and very talented designers," said Zbinden.
Zbinden said the economic problems in the US and Europe will definitely impact local gems and jewellery manufacturers, as well as Swarovski Gems' business in Thailand.
"We, however, have set a strategy to deal with this global prob-lem by focusing on the launch of new innovative gemstone products, especially in cutting and design, in the Thai market to stimulate demand. At least five new colours and new cuts of gems and created stones will be launched in the market next year," he said.
Swarovski Gems last week unveiled its Gem Visions 2012 and Zirconia Diamond Colors campaigns at the Bangkok Gems and Jewellery Fair, held from Wednesday to yesterday(September 18) at the Challenger Hall 1-3, Impact Exhibition and Convention Centre, Muang Thong Thani.
