Mr Lee Yi Shyan at the Singapore International Jewellery Show 2008

SPEECH BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE SINGAPORE INTERNATIONAL JEWELLERY SHOW 2008 ON 21 AUGUST 2008, 10AM, AT SUNTEC INTERNATIONAL CONVENTION & EXHIBITION CENTRE LEVEL 4, HALL 403 & 404

Hon Dr. Sarath Amunugama

Minister of Enterprise Development & Investment Promotion, Sri Lanka

Your Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

Good Morning

Introduction

I am very pleased indeed to join you again at the opening of the Singapore International Jewelry Show (SIJS) 2008, and be back on this show only to find it has grown bigger in floor space and with more participants. I would also like to extend my warmest welcome to all our guests from overseas, especially the participants from 30 countries and a fast-growing contingent from Sri Lanka. Welcome to Singapore!

Singapore’s retail industry and jewelry sector

Employing about 4,700 workers in 700 establishments, the jewelry sector generated S$237 million of value-added in 2006. It is an important contributor to Singapore’s retail industry with sales of $1.5 billion in 2006, and averaging S$24,000/sqm. This is more than double that of the retail industry average[1].

This set of statistics is of interest to domestic audience but I think Singapore’s position as a jewelry trade and design

The recent MasterCard’s survey on the Great Singapore Sale[2] showed that Singaporeans spent US$9.8 million on jewelry, clocks, watches and silverware during the first month of the sale. This is a 23% increase compared to the same period last year. Jewelry was also one of the top three purchases of visitors, which numbered 10 million last year, after dining and department stores expenditure in 2007.

Opportunities ahead

According to a report on the global jewelry consumption by KPMG India last year, the world jewelry sales is expected to grow at 4.6% year-on-year, reaching US$185 billion in 2010 and US$230 billion in 2015. Gold and diamond trade will continue to dominate the market, accounting for 82% of the gems trade. India and China are expected to emerge as important players, with a combined market share equivalent to that of the US market by 2015. In the meantime, we are told that Middle Eastern countries and Russian buyers are picking up on their purchase of branded jewelry.

Indeed, the world’s top luxury brands, like Louis Vuitton, Fendi, Christian Dior, Bottega Veneta, Hermes and Prada, have been reporting record breaking sales this year, despite the less optimistic world economic outlook.

The International Luxury Travel Market Industry Report last year also highlighted that high net-worth individuals, with at least US$1 million in net financial assets, are estimated to spend up to 25% (or US$180 billion) of their total expenditure on travel abroad. This suggest that there is a large market that Singapore jewelers can tap into and increasingly, these high net-worth customers will hail from emerging economies such as Russia, the Middle East, India and China.

Amidst the increasing competition from established and new players in the market, how can our jewelry sector stay competitive and ride on the strong growth potential of the global jewelry market? I have two suggestions.

Leveraging on design & innovation

One, design is one of the most important product differentiators for jewelers. Our local companies have long realized the importance of this. One of our local jewelers has a team of internationally-trained designers who study the ever-changing trends and apply their knowledge to their jewelry pieces. The company also collaborated with a local fashion designer to come up with a jewelry collection. The focus on design and innovation has enabled local jewelers to move beyond Singapore and make inroads into overseas markets.

With more top-end consumers requesting for one-of-a-kind handcrafted pieces, renowned jewelers such as Cartier and Van Cleef & Arpels have been offering customized designs to meet the needs of this group of discerning customers. I therefore encourage our Singapore jewelers to build up their capabilities in design and consider customization for their customers.

Collaboration across industries – A blend of jewelry, apparel and art

Another new area that local jewelers can explore is collaboration across industries. In recent years, top luxury brands have started to promote art alongside their products. Louis Vuitton mixed art and fashion when it opened its art gallery at its flagship Paris store in 2005. At SIJS this year, Paris-based artist Thomas Diego Armonia is showcasing ten of his paintings incorporating gold and gemstones. This is an excellent marriage of art and luxury products.

Such opportunity has not gone unnoticed in our local scene. Believing that fashion and jewelry go hand in hand, a local jeweler has recently collaborated with one local bridal wear designer to launch a new jewelry collection to complement wedding gowns. This cross-pollination of ideas between Singapore jewelers with local designers and artists will serve to heighten the visibility of our retail and design players in the international market.

Conclusion

I would like to take this opportunity to commend the Singapore Jewelers Association has done in promoting the industry. The Rotary Jewelry Design Competition sponsored by the association is an excellent move for our jewelers and media to talent spot young designers so that they can be given a head start as they embark on their design careers. I urge our jewelers to build on Singapore’s established reputation of trust, quality and reliability, and bring to market more innovative products.

I congratulate the SIJS organizers on yet another successful year for this event; and I want to wish all the exhibitors and visitors a very productive and successful exhibition ahead.

Thank You.

[1] Source: DOS 2006
[2] Source: 2008