Skilled Labor, Lower Taxes & How to Streamline Your Jewelry Business
Learn How Manufacturing Your Jewelry in Thailand Can Lower Your Costs and Benefit Your Jewelry Business.
When you’re first starting out, it’s challenging to find a manufacturer that you can trust. If you’re looking for a new manufacturer after a bad experience, or just looking to shift focus strategically in your business, the same is true. It is challenging to find a manufacturer that provides goods that you can count on at a good price, and that you can trust to do what you need them to do.
In this article, we’ll tell you why finding a wholesaler in Thailand is a great move for your jewelry business, and we’ll even tell you exactly what company to use.
It’s clear that brands need a dependable wholesaler and manufacturer who can provide high quality goods at a good price.
Choosing where your jewelry business manufactures its goods is a huge decision. Beyond pricing and quality, which of course you will be looking for, it’s important to know that you can sleep at night knowing the conditions where people work in the factory you choose are safe and ethical. It would be a PR and morality nightmare to be caught in a sweatshop scandal like H&M.
As you look for the manufacturer that is going to collaborate with you, know that Malaysia, Indonesia, Thailand, India and Vietnam are “The Mighty 5” in manufacturing, as China moves to more high-tech manufacturing.
Among the Mighty Five, Thailand is emerging as the leading manufacturing destination. According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, Thailand’s manufacturing exports were worth US$167 billion in 2014. While this puts it slightly behind India, it is it well ahead of Malaysia, Vietnam and Indonesia.
Due to a highly literate and skilled workforce, Thailand has achieved this high level of output and productivity despite relatively high labor costs as the average monthly wage is US$383. These relatively higher labor costs (in comparison to other countries in the Mighty Five) are a good thing because this means that the employees who are working on your jewelry will be well-paid for their work and you may even go so far as to share with your customers were and how your jewelry is made because you are proud of your Thai team
A jewelry wholesaler located in Thailand is a great choice because there have recently been many measures passed to promote Thailand as the world’s jewelry hub. They are increasing exports in Thailand to stimulate the jewelry industry and the economy. Your company could be a part of this explosive growth!
For example, imported jewelry duties are exempt on raw materials, semi-finished, and finished goods. That means that you won’t need to pay a tax on the goods that Thailand is exporting to you.
Thailand has recently been increasing the skilled labor salaries and wages which in turn raises the quality of goods. The labor skills that the labor force possesses is also improved because companies are valuing their employees more and investing in their businesses including getting loans to improve and upgrade their machinery and improve productivity. Your jewelry will be made with the most modern techniques on the most modern machinery, making it high quality.
As Thailand puts attention on enhancing labor skills, they are able to inform and educate smaller producers about production processes and technology that large-scale operators and foreign experts have. Although places like China have been manufacturing for a long time, as they shift to more high-tech goods, Thai people will be learning the techniques and skills that those in foreign factories have perfected.
Thailand is also investing in establishing specialized institutes to promote and develop craftsmen and skilled workers to preserve Thai heritage. While you may have specific designs that you want to create for your silver 925 jewelry business, you can be sure that the craftsmen and heritage of Thailand are being preserved through working on your jewelry account.
In turn all of these policy changes stimulate related businesses, tourism, and the general economy of Thailand. These changes have been commended globally, In fact, in 2014, the World Bank rated Thailand 18th overall in terms of the dollar value of its manufacturing output. In 2016, Deloitte promoted the country to 14th place based on the same criteria, a position it is expected to maintain until at least 2020.
Although the Thai jewelry industry is still growing and emerging, the Minister of Finance asserted that it has strong potential of Thailand.
As a jewelry business owner, this is great for you because it’s clear that the infrastructure is present for you to succeed in your business dealings with Thailand. With the reduced taxes and duties, the increase exports, the better work environments and wages for employees, you can feel good about working with a Thai jewelry wholesale supplier like ELF925.
Thailand also has relatively well-developed infrastructure with six deep sea ports and two international river ports. It is also developing its highway system to connect every province and offers rapid access to neighboring countries like Laos, Cambodia, and Vietnam. Additionally, plans are complete for a high-speed rail network that will serve the four corners of Thailand, and it will also provide a direct freight link to southern China.
This makes it easy to come and visit if you wish. You’ll be able to get where you need to go for business and leisure. It also inspires confidence around shipping. You will be able to receive your shipments smoothly and easily with all of the infrastructure that is now built and being built in Thailand.
Manufacturing Overseas
As a U.S. or E.U. business, there are many advantages of manufacturing in Thailand, including lower manufacturing costs than domestic, and with ELF925, a one-stop service that makes it easy for you to choose your silver jewelry, order in bulk, and receive your goods easily.
The disadvantages of manufacturing overseas are mostly moot when you look at what ELF925 offers. Some perceived disadvantages could be lower quality, lower labor standards and manufacturing standards, language barriers, and less payment security.
You won’t have any of those issues with ELF925. First of all, the quality of our jewelry is what we pride ourselves on. All silver jewelry (if it’s not silver it’s surgical steel) is 925 stamped silver jewelry. We only carry high quality products, our jewelry is all nickel- and lead-free and hypoallergenic, and we always source from conflict-free areas and conform to international, EU, and US regulations.
You never have to worry about payment security because we have secure payment with Paypal and 2CheckOut, and if what you ordered wasn’t what you had in mind, we are return and exchange-friendly. We also give you all the information you need to track your package and make sure that you get what you need.
There is no language barrier because we have an international sales team that can work with your needs.
We also don’t have a minimum order quantity, something that often especially holds back new jewelry businesses from ordering from new manufacturers. Instead, we have a minimum order value of $99 which is beyond manageable for most jewelry businesses even if you are just starting out, and your order will be ready within 48 hours.
The Politics of Imports
Recently the 45th American Presidential Administration proposed a 20 percent tax on all Mexican goods to pay for a wall on the southern border of the U.S. between the U.S. and Mexico. While Mexico does make beautiful 925 sterling silver jewelry, a 20 percent tax on those goods for jewelry importers and businesses could cause the price of U.S. consumer goods produced in Mexico to skyrocket.
Although Mexico is one of the biggest trading partners with the U.S., this kind of tax would force American jewelry businesses to look elsewhere for reliable sources where they can import jewelry from for their businesses.
Thailand is an excellent choice for those shifting from Mexican jewelry imports to another wholesale jewelry company. Like Mexico, Thai jewelry wholesalers will provide great prices and very high quality goods. With the ELF925 shipping and ordering process, you will also receive your jewelry orders quickly and easily.
Conclusion
Ordering your wholesale jewelry from a Thai company like ELF925 checks all of the boxes. You’ll get the quality you’re looking for at the right price. You’ll receive your order fast from people who really care about your products, and you’ll sleep at night knowing that you’re doing business with an ethical company. We can’t wait to hear from you.