Philippine-made fashion jewelry has gained a following in the international market, due mainly to its exquisite craftsmanship and unique designs.
The creative use of indigenous materials, as well as low minimum order requirements have enabled the Philippines to become one of the top five exporters in Asia for this line. In addition, the country possesses an abundance of shell and wood, guaranteeing a steady supply of raw materials.
In 2006, the Philippines exported more than $62 million worth of fashion jewelry, a slight increase over 2005. However, this represented a growth of 33 percent over 2004. Overseas shipments are expected to increase further as worldwide demand for reasonably priced handcrafted jewelry continues to rise.
However, suppliers in the Philippines are treading with cautious optimism as various challenges continue to threaten their margins. Rising raw material costs, an appreciating peso and intensifying competition from other countries in Asia are among the main industry issues.
Most suppliers are taking a number of steps to alleviate these problems. Some, for example, are increasing their focus on design development to maintain an edge over competitors. New models from these suppliers are made of unique materials and feature innovative and intricate designs. Many suppliers are also exploring export markets other than the US and Europeas they try to boost overseas sales.
The following are some of the key trends we see in the Philippines’ fashion jewelry industry:
• Exports in the line are expected to rise moderately in 2008, with increased demand coming mainlyfrom Europe, specifically Germany and France. Suppliers are also establishing new export markets in Asia.
• Companies will continue to release low-end to high-end designs instead of focusing on just one market segment.
• In the next 12 months, suppliers will focus R&D efforts on creating designs that incorporate less expensive materials to bring down costs.
• Many companies will increase export prices by Q3 2008 as raw material and operating costs continue to escalate. However, suppliers will keep price increase between 5 and 10 percent to remain competitive.
The above is extracted from the Executive Summary of China Sourcing Report: Philippines - Fashion Jewelry
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/philippines-fashion-jewelry
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