Southeast Asia – fashion accessories retailing blossoms

A vibrant scene can be observed in the fashion jewellery and accessories market in Singapore and Thailand. They not only welcome giant international brands, but are also eager to support local labels. The development of both markets is set to scale new heights in the near future.

Accessories retail scene soars in Singapore

According to the Singapore Department of Statistics, sales of watches and jewellery goods and department stores in October 2009 had decreased by between 2.4% and 4.7% over October 2008. However, the good news is the economy is recovering, allowing sales to increase by between 5.3% and 8.2% in October 2009 over September 2009. In addition, GDP for wholesale and retail trade in the third quarter of 2009 reached US$10.534 billion, a rise from the US$9.653 billion recorded in the second quarter and almost at the level of US$11.619 billion reported in 2008. This proves that Singaporeans' purchasing power continues to recover.

Customers have also become more fashion-savvy. VivoCity, the largest retail and entertainment mall in the country, housing more than 300 shops, has attracted international brands such as Cotton On, Diesel, Esprit, Forever 21, Lacoste, Levi's, Mango, Topshop, Topman, Marks & Spencer, Zara and Guess Accessories. Together with the local jewellery and accessories brands, with more than 30 shops, this sector took up a rather impressive 10% of the mall last year. General manager of VivoCity, Chang Yeng Cheong, said, "The fashion retail industry in Southeast Asia has become more vibrant over the decade. With more local designer brands gaining recognition nationwide and globally, we believe more opportunities will be seen for growth." He also highlighted the strong demand for fashion jewellery and accessories in the local market.

Singapore's customers seemed slightly conservative during the last decade, fond of fine precious stone- or diamond-set jewellery; yet, with more international fashion brands flooding in, fashion jewellery pieces appear to be the new and chic baubles among teenagers and young independent working women. According to Mr Chang, despite there being no discernable purchasing pattern among customers [in fashion jewellery items], VivoCity has noticed that fashion jewellery and accessories in the medium to high price range from well-known labels seem to be more popular.

Regarding local brands, Singapore is quite well-known for endeavouring to nurture local design talents. Its Textile & Fashion Federation has been benefiting the local fashion retail business by boosting the local fashion industry through organising events such as Singapore Fashion Week and Singapore Fashion Designers Contest. As for VivoCity, VivoCity Fashion Showcase, a special fashion showcase and fair in which it collaborates with local designers, was launched during its Great Singapore Sale period. "More international labels are expected to venture into this market, which will further boost the creativity of local talents. We look forward to seeing a more prosperous development with an exciting mix of local and global brands," Mr Chang continued.

Thailand enjoys a booming scene

Thailand is also enjoying its boom in fashion retailing as tourists come to this country for recreation and shopping. According to the 2009 World Fact Book of the Central Intelligence Agency of the United States, in 2008, Thailand's GDP at purchasing power parity had reached US$548.7 billion, ranking it number 35 among 190 countries. It indicates clearly the strong spending power of the people. Despite the country having been at one time badly hit by the crisis, the economy has been gradually recovering.

"The fashion retail industry has changed a lot over these ten years in terms of customers' purchasing power and preferences, and the variety of product choices. Moreover, more international brand names have appeared in the Southeast Asian countries, particularly Thailand. People are more open-minded and interested in new things, which has attracted relatively more global brands to invest. And that places them a little ahead of other countries," Isareit Chirathivat, marketing manager of CentralWorld Plaza, commented. The Plaza features hundreds of fashion brands like Vivienne Tam, Miss Selfridge, Topshop, Sinequanone, Folli Follie, Dorothy Perkins, Kipling and Morgan along with local designers' labels, meeting every customer's needs. Fashion jewellery and accessories stores currently account for 8% of all shops in the mall, compared with a mere 5% four years ago. CentralWorld Plaza believes the sector is still growing under the strong demand for such jewellery. Since the crisis began, sales of fashion jewellery were at one point down by from 10% to 16%, compared with 10% to 15% for fine jewellery; yet luckily, since fashion jewellery is always reasonably priced and more affordable, it quickly recovered from that fall.

Mr Isareit further explained that Thai customers' purchasing preferences are very diverse: they like well-known names, but they also appreciate local labels with intricate details and sophisticated workmanship. Generally, customers prefer colourful items – colourful stones with diamond settings, for example – and diamonds with intricate designs. For fine jewellery, they are fond of small to medium-sized items, but they like oversized or chunky pieces for fashion accessories.

Large-scale one-stop shopping malls with international brands have expanded in number in the region in the last five to six years, revealing that Thai customers welcome international fashions and trends more than before. They now prefer mixing high-end fashion with street fashion, creating their own unique character. The Plaza will house the fashion label "Gap" from early March 2010 (the first-ever launch of Gap in Thailand), allowing customers a greater variety of stylish choices. "Fashion jewellery and accessories are now very popular, even among men. They tend to be more metrosexual and are very open-minded. Fashion jewellery and accessories like rings, bracelets, necklaces and handbags, whether famous names or local labels, are key elements in their daily life. Their function is just as important as that of any piece of fashion apparel. Demand in this category has been growing constantly over past years, and this growth has been in line with that of other fashion categories such as ladies wear, leather goods and watches," said Mr Isareit.

Thailand abounds with plentiful natural materials such as colourful and beautiful shells and stones. Any type of sophisticated jewellery can be made out of these resources; and talents are then nurtured and embraced. CentralWorld Plaza cooperates with Elle in holding the "Elle Fashion Week" every year to inspire, encourage and nourish local designers. In early November 2009, the four-day show altogether displayed a wide array of designs aimed at leaving a stunning impression with people and boosting designers' popularity in the country. This fashion week is quite important for young designers who need recognition to get into the fashion industry.

Finally, Mr Isareit hopes to see Bangkok become a world-class fashion capital of Asia in the future. Just as in Tokyo, Hong Kong and Paris, international brands will mingle easily with local designers' labels. Via a process of synergy, local designers' brands will become internationalised, and together both will reinforce the city as a flourishing capital of fashion.

Source: Asia's Fashion Jewellery & Accessories Review