Local jewellery makers in the Philippines are undertaking various efforts, including procuring machineries that will lower their costs, to become competitive under the ASEAN economic integration targeted to be completed next year.
“Jewellers fear the upcoming ASEAN integration in 2015 because we are not ready to compete with them. Imagine what will happen if they are here already, we might just become traders. They are here selling jewellery cheaper than ours,” said Cecille Ramos, chairman of the board of the Meycauayan Jewelry Industry Association Inc (MJIA).
MJIA is an organization composed of 135 jewellers in Meycauayan, Bulacan, organized for the promotion of the country's rich jewellery-making heritage. The group is at the heart of the country’s jewellery cluster which also houses goldsmiths, designers, and raw material providers. Most of the MJIA members are retailers, although exports are being pursued more aggressively now.
One critical machine that industry players can acquire through the government’s shared service facility (SSF) project is the vacuum pressure casting machine. The SSF is provided by the Department of Trade and Industry as part of its assistance to micro, small and medium enterprises.
“This will be a big help, it will be a common service facility for jewellers with volume orders...We have to level up, we have to acquire more machines that could lower our production cost to be competitive with them,” she said.
Apart from acquiring equipment, jewellers are likewise doubling their efforts to develop unique designs.
“We are in collaboration with the Design Center of the Philippines in improving our products and also their packaging. We intend to develop packaging (for our products) making use of indigenous materials therefore, you create jobs,” she said.
Further, Ramos said the marketing efforts of the sector are becoming extensive.
“To boost our sales, we participate in all major trade fairs now because exports have been weak,” she noted.
Ramos expressed confidence that the local demand for jewellery is expected to increase by 30 percent this year amidst the country’s robust economic growth.
“Because of that, people have more money to spend for luxury items. (This,) although demand is not high for jewellery especially among the young people; their preference now are gadgets like the telephone, tablets, etc,” she added.
Philippine jewellery industry at-a-glance
The growth of the jewellery industry in the Phlippines has been fostered by an abundant supply of precious metals, pearls and gemstones. Besides an adequate source of South Sea pearls, the Philippines also supplies major gemstones including Mindoro jade, jadeite, jasper, garnet, tektite, quartz, epidote, blue and green schist, and opal.
Although fine jewellery production has been existed in the country for a long time, its trade was largely informal and underground without much government support until recently. Furthermore, imports of raw materials and equipment for the production of fine jewellery were heavily taxed. The industry did not develop as an export industry until the upsurge of world demand for gold jewellery in the 1990s when the government noted the export potential of the sector, and consequently included in its 1992 Export Development Plan. Since then the fine jewellery sector has enjoyed relatively steady growth.
Diamond jewellery set in 14-karat or 18-karat gold, pearl jewellery and silver jewellery are particularly well-received in the Philippines.
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