The jewelry company announced yesterday that it has made an agreement with Carrera Corp. to acquire its Pandora store network in Taiwan as of Jan. 1, 2019. The deal will give Pandora complete ownership of the brand in greater China, a territory that includes mainland China, Hong Kong, Macau, and Taiwan.
Pandora will pay approximately HKD 120 million in cash for the assets (roughly $15 million). The sell-out revenue in Taiwan was HKD 240 million in 2017. Carrera Corp. has held the distribution rights for Pandora in Taiwan since 2010.
As part of the agreement, the company will add five concept stores and 14 shop-in-shops to its retail network. Store staff in Taiwan, which numbers around 100 employees, will also move under Pandora’s umbrella.
The acquisition is part of the brand’s strategy to increase the owned-and-operated retail footprint in key markets.
“For many years Taiwan has been an important market for us,” says Kenneth Madsen, Pandora’s president of Asia Pacific. “We see attractive expansion opportunities. Having complete ownership in greater China will support our growth and development strategy in the entire Asia Pacific region.”
The company announced new leadership for its Chinese business just a couple of days ago; JCK news director Rob Bates reported on the appointment of Geena Tok as managing director of China for Pandora.
And just a few weeks ago, the company made a change to its U.S. leadership, naming retail executive Sid Keswani, CEO of a Texas grocery chain, president of its North American division.
Tok replaced Anthony Asinas, who transitioned into the role of managing director for Pandora’s Hong Kong and Macau markets. Before jumping to Pandora, she headed up Nike’s Chinese retail and e-commerce stores.
It makes sound financial sense that the brand is focusing on Asia. Pandora has seen its revenues in greater China grow by double or triple digits every year, even as it faces roadblocks in the U.S. and other Western markets. Earlier this month the brand reduced its financial guidance, which resulted in a steep stock drop.
Top: Pandora bracelet (courtesy of Pandora)
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