Luxury Jewellery in Thailand

2021 DEVELOPMENTS

Ongoing pandemic forces more industry players online

Luxury jewellery faced a very unfavourable scenario at the beginning of the pandemic as sales dropped substantially over the course of 2020. The main negative influence on category sales was the unavailability of the leading store-based retail channels for luxury jewellery during the lockdown that was in place between the middle of March and the middle of May.

Industry players are active in discounting and community support campaigns

Despite the issues seen in the retailing of luxury jewellery over the course of 2020, the category faced no major product shortages during the year as the COVID-19 pandemic did not result in any major interruptions to the supply chains of the category’s leading players. However, declining demand did force the category’s leading brands to review their pricing policies and marketing campaigns in order to maintain profitability at a time of flagging demand.

Prices rise for luxury fine jewellery while discounting is seen in luxury costume jewellery

Another important strategy that emerged since the onset of the pandemic as luxury jewellery brands sought to boost sales in the face of falling demand was to link sales of products in the category to various brand-related privileges. These privileges generally consisted of access to exclusive, often limited-edition products sold in various other categories of luxury goods under the same brand.

PROSPECTS AND OPPORTUNITIES

Despite growth and development of e-commerce, bricks and mortar retailing remains the mainstay for luxury jewellery players

At the end of the review period, many Thai consumers remained extremely reluctant to purchase luxury jewellery via e-commerce. This was mainly due to the risk of unwittingly purchasing fake and counterfeit items, but also due to the perceived risk of online payment fraud and the lack of confidence in delivery services.

In addition to online operations, brands engage in above-the-line marketing and minimalist product design

The unique exigencies of the COVID-19 pandemic have led many of the leading players in luxury goods to focus more on their online operations. Consumers meanwhile became less reluctant to purchase luxury jewellery online over the course of the pandemic.

Trend in environmental friendliness also seen in luxury jewellery

The growing trend towards environmental friendliness and social consciousness around the globe is also likely to be seen in luxury jewellery. For example, Swarovski has already developed bamboo-inspired jewellery launched under its “Atelier Swarovski ‘Beautiful Earth’” collection the sales of which are being donated to The Nature Conservancy, a global environmental organisation.