by Melissa Wong of JewelleryNetAsia
Total jewellery sales reached US$3.5 billion, or NT$105.5 billion, in Taiwan in 2012, posting 7-percent growth compared with the sales in 2011.
Modest consumer confidence hampered jewellery sales in late 2008 until the first half of 2010, according to leading market research company Euromonitor International. Jewellery business began to pick up growth in the following year thanks to the large number of marriages during Taiwan’s Republic of China 100th year celebration in 2011 and the Year of the Dragon in 2012, added the London-based firm.
Sales trends
Taiwan is a highly image-driven and appearance-conscious society across all age groups. Given this cultural tendency volume sales of jewellery increased significantly despite weak spending powder, and many consumers simply switched to lower-priced fashion jewellery. Sales of fashion jewellery remained strong over last few years, with major customers being young females below 25 years old.
In fine jewellery segment, gold was the most important precious metal in 2012 according to trade sources. Gold is important at weddings and on special occasions such as the arrival of babies and birthdays of the elderly. Gold accessories are essential gifts from the family to brides both as expression of value and artwork and also a popular form of investment.
Fine jewellery sales are closely related to gift-giving seasons, including Christmas, Mother’s Day, Valentine’s Day and Chinese Valentine’s Day, as well as popular marriage season which is usually between June and December. Chinese Valentine’s Day in January or February is estimated to account for 15 percent of total fine jewellery sales, with the largest consumer segment being 18 to 29 years old and the average unit price being US$165, or NT$5,000. Fashion jewellery sales, on the other hand, are often impulse purchases and are less related to occasions.
Unit price increased in 2012 thanks to stronger consumer confidence, which led to greater willingness to spend on higher-priced jewellery for better quality and more exquisite designs. Neckwear was the most common jewellery item, followed by rings.
Table 1. Taiwan jewellery sales forecast 2012-2017
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
| Jewellery (USD bn) | 3.48 | 3.55 | 3.63 | 3.72 | 3.84 | 3.99 |
| Growth | +7% | +2% | +2% | +3% | +3% | +4% |
Source: Euromonitor International from trade associations, trade press, company research, trade interviews and trade sources
Competitive Landscape
For Taiwanese, when looking into purchasing jewellery, design, price and brand are equally important.
Eighty percent of fine jewellery in Taiwan is sold unbranded while the remaining 20 percent is split between a large number of international players and a handful of local brands.
Goldenlife Gold Jewelry Co Ltd, the most important player in fine jewellery sales in 2011, had a nationwide presence with seven outlets in department stores across all major cities as well as a wide distribution network through traditional jewellery and watch specialist retailers across Taiwan. Towards the end of 2011, however, Goldenlife Gold Jewelry ceased supplying its products to traditional jewellery and watch specialist retailers.
Tiffany & Co, among the most recognized international jewellery brands in Taiwan, remained the second top player in fine jewellery thanks to its strong branding. The brand, which not only features premium-priced items but also offers a standard-priced jewellery range, appeals to females across a wide range group.
As the third largest in fine jewellery segment, local player Sophia Jewelry Co Ltd owns 19 outlets in department stores in Taiwan. The company focuses on diamonds and on using the Internet to explore the young consumer market.
Within fine jewellery, Internet and social media became important for company information but not for online purchasing. Jewellers were increasingly using social media as an online catalogue and to cultivate interest in their brands among young consumers. Internet retailing of fine jewellery remained very small. Jewellery and watch specialist retailers continued to dominate sales although there was a slow but gradual increase in demand via department stores.
Internet sales enjoyed marked growth in fashion jewellery, especially now that Taiwanese consumers, mainly those aged between 20 and 40, were strongly influenced by Korean trends including products and design featured in popular Korean dramas. Street stalls and small fashion accessory outlets remained the major channels of distribution for fashion jewellery, but there was an increasing trend to purchase branded fashion jewellery at department stores and jewellery and watch specialist retailers thanks to growing awareness of brands and of quality and design for this type of products.
As with fine jewellery, shares in fashion jewellery are similarly fragmented. Swarovski is by far the most well-known and available brand in this category.
Table 2. Jewellery company shares in Taiwan 2007-2011
| 2007 | 2008 | 2009 | 2010 | 2011 | |
| Goldenlife Gold Jewelry Co Ltd | 1.3 | 1.4 | 1.5 | 1.6 | 1.6 |
| Tiffany & Co | 1.1 | 1.1 | 1.2 | 1.4 | 1.3 |
| Swarovski Hong Kong Ltd | 0.8 | 0.9 | 1.0 | 1.2 | 1.2 |
| Sophia Jewellery Co Ltd | 0.5 | 0.6 | 0.7 | 0.8 | 1.0 |
| Chow Tai Fook Jewellery Group Ltd | 0.4 | 0.5 | 0.6 | 0.7 | 0.9 |
| De Beers Group | 0.4 | 0.5 | 0.5 | 0.6 | 0.6 |
| Chow Sang Sang Holdings International Ltd | 0.3 | 0.4 | 0.5 | 0.5 | 0.6 |
| Hearts On Fire Co LLC | 1.5 | 1.1 | 1.0 | 0.7 | 0.5 |
| Agnes B Taiwan Ltd | 0.2 | 0.3 | 0.3 | 0.4 | 0.4 |
| Fan Gov Precious Stone Co Ltd | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 |
| Others | 93.2 | 92.9 | 92.4 | 91.8 | 94.5 |
Source: Euromonitor International from trade associations, trade press, company research, trade interviews and trade sources
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