Alignment with Bluebell aims to accelerate Pandora store roll-out.
Pandora has announced that it has signed a distribution deal with Japanese company Bluebell to “accelerate store roll-out” and enhance the Danish company’s visibility in the region.
The joint distribution partnership will commence from January 1 2015, with the overall aim to enhance retail focus and make significant marketing investments in the Japanese market.
Bluebell will contribute with its in-depth knowledge of the Japanese market; including the nature of consumers and the real estate market.
Currently, Bluebell owns and operates one concept store and seven shop-in-shops.
Pandora chief executive officer Allan Leighton, commented: “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 part of the agreement with Bluebell, Pandora will purchase the majority of the assets in Japan from Bluebell in a non-cash transaction from January 1 2015.
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 its jewellery in Japan.
The total to be paid to Bluebell will depend on the realised revenue in 2019 and is expected to be in the range of HKD 74-220 million (£5.8m-£17.4m).
Pandora originally entered into an agreement in April 2013 with Bluebell, giving Bluebell the exclusive distribution rights to in Japan. The brand has been available in the region since 2011.