Fine jewelry covers articles made from precious metals and precious or semi-precious stones in various designs and material combinations. Fine jewelry sets or pieces are usually used for personal adornment The market for fine jewelry cover the full spectrum from low-end, middle-range and high-end segments.

Most firms in the industry are small to medium size enterprises with a few large firms. At present, most fine jewelry manufacturers are found in Metro Manila and in the nearby province of Bulacan. There are also some producers in Baguio City and Camarines Norte in Luzon, Cebu in the Visayas, and Davao in Mindanao. The industry is heavily oriented to the local market although a number of firms also export their products. Estimates from the Department of Trade and Industry place fine jewelry producers at about 250 nationwide, employing some 100,000 workers.

Global imports of fine jewelry was estimated at almost US$113 billion in 2006 (based on UNSD data). About two thirds of this figure is made up of unmounted or unset diamonds. The United States remains the largest market for fine jewelry, accounting for a fourth of jewelry imports in 2006. Other major buyers include Belgium, the United Kingdom and Hong Kong. World imports of fine jewelry has grown continuously since 2002, averaging a yearly growth of around 12%. On the supply side, six countries account for two thirds of global fine jewelry exports in 2006. These are Israel, Belgium, United States, India, the United Kingdom and Hong Kong. There is no single dominant supplier, the share of each of these six countries in global fine jewelry exports are close to each other.

Exports of local fine jewelry products peaked in 2005 when it reached about US$37 million. In 2006, industry exports dipped slightly to about US$36 million. The United States is still the largest overseas market for the industry, accounting for 34% of fine jewelry exports in 2006. Other major markets include Hong Kong and Italy. Jewelry made from precious metals and cultured pearls remain the biggest fine jewelry product line exported by the Philippines.

The challenge for the local fine jewelry sector at present is to sustain the growth in exports in the next few years in the face of rising raw materials prices, increasing production cost and intense competition posed by other countries. The rapid increase in prices of precious metals in recent years require local fine jewelry firms to expand their raw material sources to be able to get the best deal on quality, pricing and availability. Companies also need to improve their inbound logistics operations to minimize unnecessary inventory and ensure that required materials are procured and made available at the right time.

Aside from issues in raw materials supply, firms in the industry also have to contend with a limited pool of personnel with the needed skills and experience. Companies have to continue investing in training and skills upgrading of workers. Good training facilities are limited in the industry so firms often have to do the training themselves. To retain their trained workers, companies also have to maintain a relatively good level of compensation for their personnel.

In their manufacturing operations, fine jewelry firms need to continue improving their efficiency and productivity. Since there is limited investments in machineries due to their high cost, companies need to improve and fine tune their manual operations by applying more formal industrial engineering practices. There needs to be better plant layout, improved process flow and more systematic production scheduling and control. Tools and work facilities also have to be upgraded to enhance the personnel’s work environment. Other concerns in production that need to be addressed include inadequate R&D, lack of testing facilities and proper waste management.

In marketing, the sector lacks a cohesive marketing program that could create a bigger impact on the global fine jewelry market. Right now, the local market still makes up the larger portion of the industry’s revenues. However, the export market has greater income potential and needs to be further developed to sustain the growth of the industry. Over the short to medium term, the fine jewelry sector has to set definite market targets with the appropriate market strategy to focus its efforts and resources. The industry needs access to updated market information to develop better marketing programs and make judicious use of limited resources for market development. In line with this, personnel have to be trained extensively in international marketing to be able to perform better in trade fairs and in dealing with foreign customers.

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