Southeast Asia’s potential as a major jewelry consumer market is immense. Regional retail chains are expanding their footprint in this vibrant area, while local jewelers are adapting strategies to keep pace with evolving market demands.
A Booming Market
In recent years, the gemstone and jewelry industry has turned its attention to Southeast Asia, a region with 800 million people and one of the largest consumer bases in the world. According to Statista, the Southeast Asian jewelry market is projected to generate $9.28 billion in revenue in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 3.41% between 2024 and 2028.
Each Southeast Asian country exhibits a distinct and dynamic jewelry culture. For example:
- In Malaysia, 22K gold wedding jewelry is deeply embedded in tradition. Both locals and the Chinese community in the region have a strong preference for gold.
- In the Philippines, newborn girls often have their ears pierced before leaving the hospital, ingraining jewelry as a tradition from infancy.
Retail Chains Eyeing Growth
Major Asian jewelry retail chains recognize the region’s potential:
- Chow Tai Fook Jewelry Group recently appointed Gabriela Ferreira as general manager of its international division to spearhead strategic expansion in Southeast Asia and other markets.
- The group sees the rise of the middle class, anticipated economic growth, tourism recovery, and the consistent demand for jewelry as key growth drivers.
Chow Tai Fook’s managing director Kent Wong highlighted that the strategy aligns with their focus on regions where consumers understand and appreciate Chinese culture, art, and aesthetics.
As of June 30, 2024, Luk Fook Jewelry Group operates 22 points of sale in Southeast Asia, including:
- Seven stores each in Singapore and Malaysia.
- Three in Thailand.
- Two each in the Philippines and Vietnam.
- One in Cambodia.
Earlier this year, Luk Fook opened its first boutique in Kuala Lumpur, Malaysia, to expand its retail presence. Chairman and CEO Wai Cheung Wong emphasized Southeast Asia’s booming tourism industry as a driver for long-term investment opportunities.
The Market in Vietnam
Le Yen, vice chair of the Vietnam Gemstone Jewelry & Arts Craft Association, noted that gold jewelry is especially popular in Vietnam. However, she highlighted a growing interest in diamond jewelry despite challenges such as a lack of certification institutions to distinguish between natural and lab-grown diamonds.
Phu Nhuan Jewelry Joint Stock Company (PNJ), a leading Vietnamese jewelry group, shared its optimism about the local market’s stability. PNJ remarked, "Demand for jewelry remains high, as it serves both as an investment and for everyday use. High-end consumers in Vietnam seek renowned brands with designs that are modern, sophisticated, creative, and highly artistic."
PNJ also emphasized the importance of post-sale services and tailored shopping experiences to match the expectations of luxury buyers. The pandemic prompted a shift toward online shopping, with PNJ launching platforms offering perks like free delivery, three-hour express shipping, and promotional programs.
The Philippines’ Unique Approach
Jewelry retailers in the Philippines have also adapted to market changes during the pandemic:
- Karat World, a high-end jewelry chain, expanded its e-commerce operations and introduced counters in warehouse clubs, a move that earned them a local retail innovation award. President Felix Gorriceta III noted that selling jewelry in warehouse clubs broke conventions and generated significant sales during lockdowns.
Now, 10% of Karat World’s revenue comes from online sales, with a goal to increase this share to 15%. The chain also operates counters in over 10 warehouse club branches, where affordable everyday jewelry priced under $500 has proven highly popular.
Understanding Consumer Preferences
Local preferences shape jewelry offerings across Southeast Asia:
- In the Philippines, family-run businesses dominate the retail landscape. Some retailers offer installment plans and leverage social media livestreams to cater to middle-class consumers who find traditional stores intimidating.
- Karat World caters to a demographic aged 21–45, aiming to make branded jewelry accessible. Their slogan, “You Deserve It,” emphasizes that everyone should own jewelry as a reward for their hard work.
Sustainable Sourcing Practices
Karat World prioritizes ethical and sustainable sourcing, requiring suppliers to be members of the Responsible Jewellery Council. Gorriceta values long-term relationships with trusted suppliers who share their commitment to quality and environmental responsibility.