The Philippines’ abundant supply of gold, silver, pearls and various gemstones fostered the development of fine jewelry manufacture in the country. In addition to precious metals, the Philippines also has adequate sources of South Sea pearls in Palawan and parts of Mindanao. Deposits of major gemstones are also available in different areas of the country. Among the gemstones sourced locally are Zambales jade and mauve, Mindoro jade, jadeite, jasper, garnet, tektite, quartz, epidote, blue and green schist, and opal.
Fine Jewelry production has been in existence in the country for a quite a number of years. However, its trade was a long time largely informal and underground. Fine jewelry products were often seen as luxury items and not given much government support until recently. Imports of raw materials and equipment for the production of fine jewelry, for that matter, were heavily taxed. Firms had difficulty bringing in materials and equipment for their operations. The industry did not develop as an export industry until the upsurge of world demand for gold jewelry in the 1990s. Government noted the export potential of the sector and consequently included in its 1992 Export Development Plan. From then on, the sector enjoyed relatively steady growth as an offshoot of the passage of various laws that aimed at boosting the industry’s viability and competitiveness in the international market.
Fine jewelry products cover items made of precious or base metals clad with pearls and precious or semi-precious stones. Gold, silver and platinum are considered precious metals, white diamonds, sapphires, emeralds and rubies are examples of precious stones. The semi-precious stones, on the other hand, include quartz, opal, topaz, amethyst and coral.
Finished fine jewelry products include ornaments like rings, bracelets, necklaces, brooches, earring, chains, tie-pins, cufflinks and other articles worn on the body or marched with clothes. The particularly diamonds set in 14K or 18K gold, pearl jewelry and silver jewelry.
There are about 250 enterprises manufacturing and exporting fine jewelry nationwide. The industry employs about 100,000 workers. Most of the firms are concentrated in Metro Manila and nearby province of Bulacan. Other producers are found in Baguio City and Camarines Norte in Luzon; Cebu in the Visayas; and Davao, Surigao and Zamboanga in Miindanao. Small and medium-scale jewelry enterprises comprise about 50% of the industry, while the top 10 largest jewelry chains and manufacturers represent less than 25%. Only few firms subcontract work. Most rely on in-house workers for production.
Finished fine jewelry products include ornaments like rings, bracelets, necklaces, brooches, earring, chains, tie-pins, cufflinks and other articles worn on the body or marched with clothes. The particularly diamonds set in 14K or 18K gold, pearl jewelry and silver jewelry.
The market for fine jewelry may be divided into three segments: high-end, medium-range and low-end. Products for the high-end market are made of top quality materials and have excellent craftsmanship and designs. As such, consumers in the high-end market are not price sensitive. The middle and low-end markets are usually more price-conscious and treat items bought as investments. Women tend to be the bigger market for fine jewelry as such products are usually used for personal adornment. Although men also purchase jewelry items, these are usually intended as gifts.
On the whole, fine jewelry is considered a passion for high income households. Most consumers buy only from trusted or well known jewelers or retailers. The business of local jewelry retailing consists of independent jewelers and chain jewelry stores. The former also carry more fashion jewelry items and feature a wider of non-jewelry gift products. The jewelry store chains focus on only a few product categories such as diamond bridal market.
Rings continue to top the list of products manufactured followed by earrings, necklace and ladies terno.
A variety of methods is used in selling jewelry products. Most manufacturers dispose their products using combination of direct selling, sales outlet and agents. Most manufacturers do not promote their products formally. Other companies have their company brochure and joined fairs and exhibits.
Marketing plans include establishing display outlets, increasing linkages, lay away plan, participation in trade fairs, going into exporting and conducting quality study. Other marketing strategies include selling on “made to order” basis, employing trusted agents, promotion through word of mouth, direct selling and after sales service and keeping trust.
Prices depend on the gold contents of the total weight of the item and the type of stone embedded in the piece. Prices can start from US$200 to US$300 for basic jewelry such as silver and gold necklaces, bracelets, rings, earrings, pendants and brooches; US1,000 for pearl and gemstone jewelry, 18 karat gold jewelry and natural pearl jewelry; US$ 1,000-US$2,500 for finer silver, gold or platinum jewelry and above US$2,000 for diamonds jewelry with the finest diamonds.
The Philippine government has no restrictions for the importation of gems and jewelry. Therefore, these products are liberalized items.
Meanwhile, the Philippine Export Development Plan prepared through the initiative of the Department of Trade and Industry included fine jewelry among the original fourteen (14) export winners with the end view of harnessing the industry’s full export potential.
Republic Act 8502 otherwise known as the Jewelry Industry Development Act of 1998 features tax and duty relief to jewelry manufacturing including importation of gemstones and raw materials components and equipment. Among the features of Republic Act 8502 are the following :
- Entitlement to a zero duty on imported raw materials which include precious metals, loose gems, gemstones, jewelry parts, accessories and supplies;
- Exemption from the imposition of excise tax;
- Entitlement to zero duty on imported capital equipment, including spare parts and tools;
- Entitlement to a deduction from taxable income equivalent to one hundred fifty percent (150%) of expenses incurred in training schemes;
- Entitlement to gold and silver sales by the Central Bank of the Philippines;
- Authority to buy silver and gold directly from other sources without specific authority from the Central Bank of the Philippines. However, this shall not include sale of gold and silver from the small-scale miners;
- Inclusion to locally manufactured products in the government’s tourist duty free shops; and
- Eligibility to other incentives provided for by other special laws.
In line with the government’s thrust to promote technology upgrading, metal working equipment were given zero tariff rates. Jewelry firms may also rent the modern equipment found in common service facilities for their own production.
Other Incentive packages are available to investors. Registration with the Board of Investments entitles a firm to have an income tax holiday and partial duty exemption for equipment whose tariff rates have not been lowered to zero.
The Philippine imports Gold in 2009 valued at US$134.713 million a decreased of 63.64% from 2008 atUS$220.450 million. Major exporting countries include Japan, Hongkong, Korea. Malaysia and Singapore. On the other hand, the country imported Silver amounting to US$0.854 million a decreased of 96% compared in 2008 US$1.675 million. Top Selling countries were Germany, Singapore, Taiwan, United States and Japan. Meanwhile, the Philippine imported Jewelry with Precious Metals at US$0.465 million in 2009 an increased of 0.5% compared in 2008 US$0.234 million. The country bought from Japan, Singapore, French, Italy and Germany. Moreso, the country imported minimal amount of articles with Pearls amounting to US$0.008 in 2009 as that of 2008 US$0.017 million and Other Articles with Precious Metals valued at US$0.006 million in 2009. The Philippines exported Gold in 2009 amounting to US$216.898 million a decreased by 84.30% compared in 2008 US$399.748 million. Major importing countries include Hongkong, Taiwan, Switzerland, Japan and Malaysia. The country also exported Silver in 2009 valued at US$19.956 million down by 7.72% compared in 2008 US$21.497 million. Big countries buyers were Malaysia, Italy, Taiwan, Thailand and Hongkong.
On the other hand, the Philippines also exported Jewelry with Precious Metal amounting to US$28.359 million in 2009 a increased by 9.2% compared in 2008 US$25.973 million. The country exported to countries such as Italy, United Kingdom, Hongkong, Japan and United States. Articles with Pearl Stones totaled to US$1.535 million in 2009 decreased by 11.07% compared in 2008 US$1.705 million. Big importing countries include Hongkong, Switzerland, Japan, United States and France.
The slowdown of the worldwide economy attributed to the decreased in the Philippine export and imports of jewelries from other countries.
The Value Added Tax (VAT) is 12% for all items of jewelry.
The Philippine’s Import Tariff rates for fine jewelry and gems stones for ASEAN CEPT (all ASEAN countries including Thailand) is 0% and Most Favored Nations Rate (excluding ASEAN countries) is 3-10%.
No trade barriers for products of jewelry and gemstones.
1. NARA INCORPORATED
29 F. Ocampo Avenue, Manuela IV Pamplona
1740 Las Pinas City, Philippines
Tel.: (632) 8729987
Fax : (632) 8722589
Email : samara@sanara.com.ph
2. IBAY’S SILVER SHOP
2nd Floor, Lions Club Building, Gov. Pack Road
Baguio City, Philippines
Tel.: (6374) 4427082 ; 4434515
Fax : (6374) 4427082
Email: info@ibay925.com
3. SUAREZ BROS. METAL ARTS, INC.
Unit 104, Sunrise Condominium,
226 Ortigas Avenue, Greenhills
San Juan, Metro Manila, Philippines
Tel: (632) 7211971 to 73
4. CHOTEK GIFTS
821 Ongpin street, Sta.Cruz Manila, Philippines
Tel: (632) 7333097
Fax: (632) 7333105
Email: ryuliong@pacific.net.ph
5. DJ DISCTINCTION HOUSE OF JEWELS
219- 2/F, Greenhills Jewelry Center, Greenhils, San Juan,
Metro Manila, Philippines
Tel: (632) 7258767, (632) 7255873
Email: krislu@mac.com
6. RAST METALOR PHILIPPINES
VFP Building 2, West Bicutan, Veterans Center
Taguig, Metro Manila, Philippines
Tel: (632) 8390036; (632) 8390026
Fax: (632) 8390029
Email: rmp.rast@gmail.com
7. MS. AURORA ESCUETA
Vice President
ASIA PACIFIC BUSINESS & INDUSTRIAL SYSTEMS INC.
549 Vergel Street Pasay City, Philippines
Tel: (632) 8425819
Fax: (632) 8445601
Mobile: (63) 9178220901
Email: bollie.escueta@yahoo.com.ph
8. MS. MA. CORAZON ANTONIO
Owner
BANMA CORPORATION
700 Shaw Boulevard Pasig City, Philippines
Tel: (632) 6314471; 5233151
Fax: (632) 6355637; 5245993
Email: aantonio@bsp.gov.ph
9. MR. DULZZI GUTIERREZ
Creative Director
SILVER WORKS
1209 Equitable Tower, ADB Avenue cor. Poveda Street, Ortigas Center,
Pasig City, Philippines
Telefax: (632) 6340097
Email: dulzzi@hotmail.com;
hr@silverworks.ph
1. Mr. Benjamin C. Yap
General Manager
BENJAMIN FAVORED SON, INC
2nd/F Shangri-La Hotel Manila Near Shanghai Palace
Ayala Ave., Makati City, 1200 Philippines
Tel. (632) 813-5009 to 10
Fax.(632) 819-38-84
2. Mr. Richmond S. Yang
General Manager
K JR JEWELRY
Stall 162 G/F Glorieta 4, Ayala Center,
Makati City, 1200 Philippines
Tel. (632) 7284881
Fax.(632) 8924578
3. Mr. Emerson A. Yao
General Manager
CRYSTAL CARAT
2nd Floor, Quad I Ayala Center, Makati City, 1200 Philippines
Tel. (632) 752-7465 or 66 / 894-0303
Fax. (632) 815-3432
E-mail Add.: info@lucernejewelers.com
4. Mr. Gabriel S. Panlilio
General Manager
FE S. PANLILIO JEWELLERS
6750 Bldg., Ayala Avenue
Makati City, Philippines
Tel. (632) 813-23-58 / 813-0075
Fax .(632) 812-9660
Mobile: 0916-6665477
Email: fspanlilio@panlilio.com.ph
5. Mr. Hans R. Brumann
General Manager
HANS BRUMANN, INC.
Legaspi Park View Condominium
134 Legaspi St., Legaspi Village, Makati City, Philippines
Tel. (632) 892-5058 / 893-1203
Fax . (632) 812-9881
E-mail Add.: brumann@info.com.ph ; hemm@compass.com
6. Mr. Abelardo A. Mondonedo
General Manager
JEWELMER INT’L. CORP.
6th Floor, National Life Building
Ayala Ave., Makati City, Philippines
Tel. (632) 810-0266
Fax (632) 818-9778 / 818-9194
Mobile No. 0917-533-3122
E-mail Add.: sales@jewelmer.com
Website: www.jewelmer.com
7. Ms. Kristine Yang
General Manager
KRISTINE'S JEWELRY
6750 Bldg., Ayala Ave. Makati City, Philippines
Tel. No. (632) 812-9725 / 812-6251 (Acctg. - Asian Mansion)
Fax No. (632) 818-8437 /810-3196
8. Mr. Mark Alexander B. Velayo
General Manager
K. VELAYO PAWNSHOP & JEWELRY,
INC.
Unit 309, First Level
Shangri-La Plaza, EDSA, Mandaluyong City, Philippines
Tel. No.(632) 634-8086 to 88
Fax No.(632) 634-8088
9. Mr. Teddy T. Ortiga
General Manager
LA ESTRELLA DEL NORTE
S1 A&B, 2nd Floor, The Gallery Bldg.
Amorsolo Street, Legaspi Village, Makati City, Philippines
Tel. Nos. (632) 844-5525 / 843-5380
Fax No.(632) 817-4268
Email: ledn@impactnet.com
10. Mr. Jean Henri D. Lhuillier
General Manager
LHUILLIER, INC.
1782 PJL Corporate Center
N. Garcia & Candelaria St. Bel-Air, Makati City, Philippines
Tel. No. (632) 899-8757 or 895-0876 / Acctg. 897-9332
Fax No. (632)899-8450
E-Mail Add.: jhl@pjlhuillier.com.ph &/or yllorca@pjlhuillier.com
11. Ms. Mercedes C. Llamas
General Manager
MERCELLE'S
2nd Floor, Quad I, Ayala Center, Makati City, Philippines
Tel. Nos. (632) 812-0496 / 815-8631 / 817-3268
Fax Nos. (632) 816-4190 / 575-24-89
Mobile Nos. 0917-536-0924
E-Mail Add.: mrcelles@skyinet.net
Website : www.mercelles.com
12. Mr. Ronnie Co
General Manager
NEW LIFE JEWELRY
924 Masangkay Street, Binondo, Manila,1006 Philippines
Tel. Nos. 245-0588 / 89 / 244-8733
Telefax No. 245-0631
E-mail Add.: newlife@netasia.net
13. Ms. Amelita A. Daez
General Manager
ORO Y PLATA
G/F, 2276 Narra Bldg.Pasong Tamo Ext., Makati City 1200
Philippines
Tel. No. (632) 893-1171 or 76
Fax no. (632) 817-0058 Beeper 150-303-131
E-mail Add.: oroyplata@mydestiny.net
Website: www.oroyplata.com.ph
14. Mr. Ernesto Ang
General Manager
PINCTADA PHILS., INC.
5th Floor, Bldg. B SM MegaMall, Mandaluyong City, Philippines
Tel. Nos. (632) 634-7581 / 633-4935 / 5098
Fax No. (632) 361-62-94
E-mail Add.: pinctada@compass.com.ph
15. Mr. Renato A. Florencio
General Manager
RECOMIRA-RAY
2nd Level Shangri-la Plaza
Mandaluyong City, Philippines
Telefax: (632) 631-1616 / 6311615 / 636-33-99
E-mail Add.: rafjewel@i-next.net
16. Mr. Daniel Villacorta
President
HIYAS JEWELLER
Unit 2A, 3rd Floor, TOPS Building, No. 3 Economia Street
Quezon City,1100 Philippines
Telefax : (632) 6345393 / 94
Email : danvilcom.corp@pacific.net.ph
17. Mr. Antonio Jr. Atienza
President
Goldenas Jewelry Corporation
145 Saluysoy, Meycauayan Bulacan 3020
Philippines
Tel.: (6344) 8407007
Fax : (6344) 8408008
Email: aza@goldenasjewelry.com
18. Mr. Emerson C. Yao
General Manager
LUCERNE JEWELLER
Shop 104, Quad III Ayala Center, Makati City,1200 Philippines
Tel. Nos. (632) 751-6974 / 894-4342 / 894-0303
Fax Nos. (632) 815-3432 / 751-6796
E-mail Add.: info@lucernejewelers.com
Website : http://www.lucerne.com.ph
19. Ms. Malu D. Unson
General Manager
STERLING GIFTS, INC
3640 P. Sanchez Street
Sta. Mesa, Metro Manila, Philippines
Tel. Nos. (632) 713-9572 to 73
Fax No. (632) 713-9573
E-mail Add.: sterling@info.com.ph
20. Ms. Ann Michelle Co
General Manager
VIE NOUVELLE BIJOUX, INC.
Shop #4, G/F The Peninsula Hotel Manila
Ayala Avenue, Makati City, Philippines
Tel. No. (632) 844-0822 / 245-0588
Fax No. (632) 245-0631
Email Add.: mish@netasia.net
1. Ms. Jennifer P. Cruz
General Manager
33 Point 3 Exports, Incorporated
M.L. Quezon Street, Casuntingan
Mandaue City 6014, Philippines
Tel.: (6332) 3448831 to 32 ; 3450449
Fax : (6332) 3440518
Email: 33point3@skyinet.net
33point3@pacific.net.ph
2. Ms. Clarence A. Sanchez
General Manager
Amarcas International Corporation
# 153 J. Rizal Street, Mandaue City 6014
Cebu, Philippines
Tel. : (6332) 3461109 ; 3445740
Fax : (6332) 3460064
Email : amarcas@cebu.pworld.net.ph
Clarence@amarcas.com
3. Mr. Alfredo Baldivas
Owner
Alcon Jewelry, Incorporated
# 2- A Lena Hills Street, Rolling Hills, New Manila
Quezon City, Philippines
Telefax.: (632) 7246391
Email : alcon@guildofphilippinejewellersinc.com
4. Ms. Gladys M. San Jose
Office Manager
Dam Good Stuff, Incorporated
2nd Floor, Corinthian Plaza, 121 Paseo De Roxas
Legaspi Village, 1229 Makati City, Philippines
Tel.: (632) 8405183
Fax : (632) 8402572
Email : admin@damgoodstuff.com ; jrallang@damgoodstuff.com
5. Ms. Gina J. Mendoza
General Manager
Distinction House of Jewels
219 — 2nd Floor, Greenhills Jewellry Center
Greenhills, San Juan, Metro Manila, Philippines
Tel.: 9632) 7255873
Fax : (632) 7258767
6. Mr. Antonio Z. Atienza, Jr.
CEO / President
Goldenas Jewellery Incorporated
# 145 Saluysoy Meycauayan, Bulacan
Philippines
Tel.: (632) 2996122 (6344) 8407007
Fax : (6344) 8408008
Email : info@goldenasjewelry.com
Website : www.goldenasjewelry.com
7. Ms. Kate Lagman
Senior Sales Officer
Jewelmer International Corporation
701 National Life Insurance Bldg.,
# 6762 Ayala Avenue, Makati City, Philippines
Tel.: (632) 8100266
Fax : (632) 8189194
Email : retail@jewelmer.com
8. Ms. Mary Ann Guevara
Marketing Director
Lanero, Incorporated
The Jewellery Greenhills Shopping Center
San Juan, Metro Manila, Philippines
Tel.: 9632) 7235028
Fax : (632) 7236280
Email : lanerojew@pacific.net.ph
9. Ms. Mercedes Llamas
Chairman
Mercelles Corporation
2nd Floor, Shangrila La Hotel Ayala Avenue
Makati City, Philippines
Tel. : (632) 8173286
Fax : (632) 8164190
Email: mercelles@skyinet.net
Website : www.mercelles.com
10. Ms. Mia Florencio
Corporate Secretary
Recomira Ray Corporation
2nd Floor, Agustin 1 Bldg., Emerald Bldg.
Ortigas, Pasig City, Philippines
Tel.: (632) 6311615
Fax : (632) 6311616
Email : miaflo@pldtdsl.net
The Industry made significant headway in the foreign market when exports of fine jewelry increased by 55% in 2006. The challenge for the sector is to maintain the momentum for this growth over the next several years. The industry needs to encourage more manufacturers to venture into the export of their products. This should increase the vase of exporters and allow the sector to expand its presence in current markets and enable more experienced firms to tap new buyers in other regions. Developing exporters can be done in a phased manner so that firms can enter the foreign market in a pace that is comfortable for them. Exporters can attend smaller fairs and then work their way up to the major international events.
In line with this effort to generate more exports, there should be an industry wide marketing program based on some distinctive features of local jewelry aimed to specific markets. The target market can be geographic in scope (i.e. Europe) with certain design and price considerations. The industry should obtain the necessary market data to help build up this program. With the target market identified and the proper image for local jewelry established, the necessary marketing collaterals can be developed and promotional efforts undertaken.
The Companies need to continue working for favorable conditions on their supply of precious metals and other materials as well as the importation of equipment and technology. The industry has to enhance their collective advocacy capability to be able to sustain efforts in working a better business environment.
A number of firms in the industry have a semi-mechanized setup in production and utilize manual means in their other activities such as material handling, quality control and packaging. Most companies find it hard to upgrade machineries due to the high taxes on equipment importation. Other concerns in production include adequate Research and Development, lack of testing facilities and need for proper waste management.
In marketing, the sector lacks a cohesive marketing program that could create a bigger impact on the global fine jewelry market. The cost of developing foreign markets is high and often takes time before significant sales are generated. This discourages more firms to get into fine jewelry exports. On the local front, firms generally rely on a traditional system of agents to sell their products although a few firms have their won retail stores. If more companies are to go into exports, they would have to review and upgrade their current marketing practices.
The challenge for the fine jewelry sector for the next few years is to sustain the growth in exports they have experienced in the past year. The sector would need to expand the base of firms that are presently exporting and continue to develop more buyers. Issues all along the fine jewelry value chain would need to be addressed to improve the competitiveness of local jewelry products in the global market.
Thai Companies of Jewelry has a potential in exporting their jewelries to the Philippines particularly the silver and gold with precious stones. Philippine consumers prefer high quality designs as well as prices for the jewelries. Meanwhile, Thai Companies can also have the opportunity to have a joint venture with Philippine Companies particularly in the manufacture of jewelries.
Source : http://www.depthai.go.th