Malaysian jewellery maker OE Design is to close its retail stores and focus on wholesaling.

The company, which operates jewellery stores under the OE Fine Jewellery brand, has been retailing for 17 years.

It currently has a store in KLCC which will close by the end of the year, and another in Straits Quay, Penang, its home city, which will close in February.

GM Ong Li Dong said the global jewellery market is shrinking.

“The effort we put into market our jewellery products under the OE brand name has not yielded the desired results, especially in light of the escalating cost of doing business, the competition from online businesses and the changing consumption patterns of consumers.

“Furthermore, it has become extremely difficult to hire skilled labour for production.

“We thought that it is best to dismantle the old production system, take a break and possibly launch a different business model later,” Ong said.

The company will continue to sell from its wholesale office in Penang for customers loyal to the brand who wanted to buy direct.

OE Design was founded in 1974 and exports to about 40 countries worldwide. Many of its products are manufactured for sale under other jewellery brands.