Jewellery maker Pandora has signed an agreement with Bluebell for the joint distribution of jewellery in Japan from January 2015.

The cooperation aims to accelerate store roll-outs, enhance the retail focus and allow significant marketing investment in the Japanese market.

Bluebell will contribute with its in-depth knowledge of the retail market and the Japanese consumer as well as its insight into the Japanese real estate market. Currently, Bluebell owns and operates one concept store and seven shops-in-shops.

“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,” said Pandora CEO Allan Leighton.

As part of the agreement, Pandora will, on January 1, 2015, purchase the majority of the assets in Japan from Bluebell in a non-cash transaction. 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 Pandora jewellery in Japan. The total amount to be paid to Bluebell will depend on the realised revenue in 2019 and will be in the range of HKD74-220 million (or approximately DKK 52-156 million). The full amount will be transferred to Bluebell upon termination of the agreement.

Pandora originally entered into an agreement in April 2013 with Bluebell, giving Bluebell the exclusive distribution rights to Pandora jewellery in Japan. Pandora has been available in Japan since 2011.