As reported by Jeweller last month – and following much speculation – Chamilia will be closing its Sydney office and effectively ending its product offering in Australia and New Zealand on 30 April 2013.
Judy Cameron of Cameron's Fine Jewellers in Swan Hill, Victoria, said she was shocked to hear of Chamilia’s decision to close. She said she would have liked the company to continue its operations through wholesaling in a similar way to when it was introduced initially in Australia by supplier Arctic Wolf.
Cameron’s Fine Jewellers had been stocking the jewellery brand since 2007 – which was when the range was first made available to the local market. Cameron said she had no intention of replacing Chamilia with another bead company at this stage.
“Chamilia only ran at 5 per cent of our turnover and so it is not going to impact on us a great deal. As we have never been Pandora stockists, we have aimed to grow our business without relying on one product. We have had consistent growth over the last 15 years by deliberately not allowing one product/brand to run more than 5-10 per cent.”
Cameron said her major concern at the moment was honouring warrantees on existing stock. The retailer will provide cash refunds and repair items in-house, where possible.
Other suppliers weigh in
Competing in the bead and charm market space is Trollbeads. The brand was introduced in Australia in 2006 and is now locally distributed by RJ Scanlan.
RJ Scanlan marketing manager Chris Scanlan told Jeweller that although he had received increased interest for Trollbeads from former Chamilia customers, some were still apprehensive about working with another beaded jewellery brand.
“Yes, we have signed new accounts for Trollbeads and have had many more enquiries regarding our brand. However, there are also many retailers who, after the last couple of years of experiences dealing with Pandora and Chamilia, are rightly ‘gun shy’ about opening an account with another bead brand,” Scanlan said.
He added that the news of Chamilia’s closure came as a complete surprise. “We were shocked that a company could desert their retailers in this manner, particularly after their strong pitch to the market to open accounts.
“We were particularly sorry for the stores that had committed to Chamilia after losing Pandora. These retailers are entitled to feel very bitter about the experience.”
In terms of what Chamilia’s exit signified for the charm and bead market in Australia, however, Scanlan believed it was more a reflection on the jewellery brand’s management and priorities rather than the market for bead and fashion jewellery ranges in general.
New opportunities
While not competing directly with Chamilia, other suppliers offering fashion jewellery brands with similar bracelet and pendant/charm pieces may be able to leverage new business opportunities.
Danish jewellery brand Story by Kranz & Ziegler – locally distributed by Story Jewellery Co – was launched in Australia earlier this year. Its marketing and product development manager Lida FitzGerald believed that Chamilia’s closure would present new opportunities for suppliers and retailers.
“Chamillia stockists are amongst many retailers looking for fresh alternatives. They can continue to build on the luxury fashion jewellery market, which is clearly here to stay, while moving away from the traditional beaded jewellery,” FitzGerald said.
“There will be a gap in the market that Chamilia stockists will want to fill and the calls we’ve had suggest that Story may fit that gap.
“It is also an opportunity for the Story team to introduce our brand to stockists who weren’t aware they needed something new until now or weren’t aware this quality product was now available in Australia.”
Chamilia is currently holding a “50 per cent off” inventory liquidation event for its existing Australian and New Zealand customers now through to 29 March.
More reading:
Chamilia shuts up shop in Australia