Pandora has announced that it has signed an agreement with Hong Kong-based company Oracle Investment Limited to ensure the joint distribution of Pandora jewellery in China.
The deal will start from July 1 2015 and will continue until December 31 2018, at which point Pandora will take over full distribution of its jewellery in the region.
Pandora plans, through the cooperation, to accelerate store roll-out, enhance a branded retail focus and make significant marketing investments in the Chinese market.
Oracle will contribute with its in-depth knowledge of the retail market and the Chinese consumer as well as their insight into the Chinese real estate market, which will aid Pandora in securing the most attractive locations.
Pandora chief executive officer Allan Leighton, said: “China is a huge opportunity for Pandora. It is the largest Jewellery market in the world, and our business there today is tiny. With this new collaboration with Oracle we gain direct access to and control over this highly attractive market, which will enable us to ramp up our presence there significantly over the next few years”.
On 1 July 2015, Pandora will purchase the majority of Oracle’s assets in China. The initial payment to Oracle is expected to be approximately HKD 120 million (or approximately £9.9m). The total payment will be in the range of HKD 200-500 million (or approximately £16.8m – £39.6m).
Oracle is Pandora’s existing distributor in China and was originally granted distribution rights to its jewellery in 2011.
Currently, Pandora has 30 concept stores and 19 shop-in-shops in China.
The Chinese jewellery market is the largest jewellery market in the world and in 2013 had a value of HKD 705.5 billion (£58bn), corresponding to an increase of 23% compared to 2012.