Sparkling and Promising The Philippine jewelry industry can shine globally once the technology factor is addressed By Delma L. Peyra
The jewelry industry in the Philippines has been around for a long
time now. In fact, there are about 250 businesses, plus thousands of
cottage type operations engaged in the industry with a pool of more
than a hundred thousand workers. But around 50% of them are small- and
medium-scale enterprises. The largest jewelry manufacturers account for
less than 25%.
It is with this reality that the government finds a
great opportunity in developing the Philippine jewelry industry. After
all, the country is blessed with an abundant supply of gold and
gemstones such as opal, jasper, quartz, and jade, among others. Add to
that a highly-skilled labor force and Philippine jewelers may very well
prepare for the bigger, global marketplace.
But the growth of the industry will have to go at a faster rate,
especially for the small industry players who need help in extending
their reach beyond the domestic market.
The Big Leagues
It took some time to get an
interview with Jewelmer, the Philippine company that produces the
famous South Sea pearls. But thanks to web-based e-mail – after a
flurry of messages back and forth - Philippine Business finally caught
up with the firm’s top officials at the International Jewelry Trade
Fair in Kobe, Japan – one of about a dozen jewelry trade shows around
the world that Jewelmer participates in annually.
“Our main purpose for attending fairs,” says Jewelmer marketing manager
Angela Poblador, “is to strengthen our competitive position with other
pearl producing countries and jewelry manufacturers.”
And compete, they must. Australia and Indonesia also produce the highly
prized South Seas (a 12-mm to 16-mm, 39-strand necklace can fetch up to
US$70,000), although those made in the Philippines come out cheaper
because of lower wages in the country. Jewelmer is probably the biggest
Philippine jewelry company – with integrated operations in pearl
farming, jewelry manufacturing and retailing. Around 85% to 95% of
Jewelmer’s operations are concentrated on exports, says Poblador.
For the second time last January 2003, six Philippine jewelers
including Jewelmer showed their gems and wares at the VicenzaOro
(International Exhibition of Gold Jewelry, Silverware and Watches) in
Italy. This fair is held thrice a year and considered the world’s top
jewelery trade fair where buyers from all over the globe check out new
designs and spot trends. The Center for International Trade Expositions
and Missions (CITEM) – the government body that helps local companies
expand their markets abroad through participation in trade fairs –
reports that some US$479,000 worth of combined orders were booked for
the country’s delegation at the VicenzaOro fair in January alone. While
only 20% of the country’s total jewelry production are being exported,
exports of precious jewelry in dollar terms have grown 30% to almost
US$21 million from 1997 to 2000.
Participating in trade fairs around the world is one of the vehicles
by Philippine jewelers to get into the lucrative export markets abroad.
The world’s consumer market for fine jewelry has already topped more
than US$40 billion in 2001, about half of which are sourced from
imports. In the United States – the top importer of fine jewelry –
sales are expected to increase six to seven percent annually in the
next few years.
Italy, on the other hand is the world’s top producer of fine
jewelry – with about 8,200 jewelry factories producing some US$6.4
billion worth of fine jewelry every year. As Europe’s fashion
epicenter, Italy’s jewelry designers unveil yearly collections of the
latest designs, shapes, color and textures.
One of the country’s top exporters of fine jewelry is Ilios
Jewellers, a Rome-based jeweler, which established a factory in 1996 at
Subic. This factory now employs about 40 Filipino workers. Doreen
Troisi, director for Ilios, says they mainly export to Italy. Other
export markets says Ms. Troisi are Sweden, United Kingdom, Chile, and
Southeast Asia.
But while Ilios exports 90% of its production – enabling it to earn
bigger revenues in dollars, thanks to its Italian connection (“We have
our own stone-cutting division, and we use the latest Italian
technology and machinery,” says Ms. Troisi) – most of the country’s old
jewellers, running small-to-medium operations need help in reaching out
to export markets.