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Pandora Says the Time is Right to Unlock Potential in Japan
Sep 12, 2014 1:58 PM
By Jeff Miller
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RAPAPORT...
Pandora Jewelry
signed an agreement to take over the majority of
Bluebell's Pandora-related assets in Japan in a non-cash transaction with the deal taking effect on January 1, 2015. Currently, Bluebell owns and operates one concept store and seven shop-in-shops.
The
agreement is subject to certain conditions, however, Pandora expects it will accelerate its own store roll out in Japan, enhance expansion
and make significant marketing investments in that market. Bluebell will contribute to deal with its
knowledge and insight into the retail and real estate markets and the Japanese consumer.
Allan Leighton, the CEO of Pandora, said, “The Japanese market is a very attractive market both in
terms of size and growth opportunities and holds a great potential for Pandora. Bluebell has done
a great job in creating awareness around our brand in Japan and we believe the
timing is right to
join forces with our partner, to unlock the full potential in the market.”
As a
starting point, the term of the
agreement is five years. Upon termination of the agreement, Pandora will take over the full
distribution of jewelry in Japan. The total amount to be paid to Bluebell will depend upon
actual revenue in 2019 and
will be in the range of $9 million and $27 million (DKK
52 million to
DKK 156
million). The full amount will be transferred to Bluebell upon termination of the agreement.
The two company's relationship goes back to April 2013, when Pandora authorized Bluebell's
exclusive distribution rights in Japan.
The Japanese jewelry market had a value of about $9 billion (JPY 961 billion) in 2013,
up 6 percent from 2012, according to Pandora.
Bluebell
was founded in France more than 60 years ago and specializes in
distribution
and sales of
international branded goods, including fragrances, beauty, fashion, accessories,
jewelry and watches. Bluebell has more than 400 points of sale across Asia and turnover of more than $1 billion.
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Tags:
bluebell, Japan, Jeff Miller, Jewelry, Pandora
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