Beads, more than a jewellery fad?

Ever since the bead and charm “craze” began its meteoric momentum around five years ago, industry pundits have predicted its demise; however, the sector appears to be as strong as ever with a growing presence of different brands from around the world.

 

High profile German jewellery brand Thomas Sabo recently entered the market with its own range of beads, showing confidence in the love affair that women, including those in Australia and New Zealand, have with the pieces.

 

Duraflex Group Australia managing director Phil Edwards and local Thomas Sabo supplier, told Jeweller he believed it was time for retailers to adjust how they viewed jewellery beads. 

 

“The bead market in Australia has been an exceptional product line for jewellery retailers, to the point that it needs to be considered a category in it’s own right,” Edwards said.

 

With strong sales over a sustained period of time, Edwards said retailers should have the confidence to expand their range.

 

“I don’t believe that a lot of retailers are making a big effort to find additional bead product outside a few select product lines and I think they could be missing out,” he added. 

 

“Some retailers have been focused on one range, be it for convenience, or for fear that beads were perhaps only going to be around for a short period. But the figures are clearly saying that it’s not just a fad. It is it’s own category, and like any category it will continue to evolve and grow in its own manner.”

 

Edwards suggested retailers should start to treat beads in the same manner that they would watches. He does warn however, that stores should be selective in the items they choose to stock.

 

“Many stores carry multiple brands of watches and I believe the same business model can be applied to beads. The market is there for jewellers to look at additional collections but, just like watches, the bead collections need to have a point of difference to be considered.”

 

Some of Edwards’ confidence comes from the early interest in the new Thomas Sabo Karma Beads collection, which was launched in Australia in early February. 

 

“In Australia, the Karma Beads haven’t been in the stores long enough to measure any immediate sales impact; however, we are exceptionally pleased with the response and feedback we have received from retailers and consumers. 

 

“In Germany, we do have sales reports from the first six weeks and they are very pleasing and encouraging. The first set of figures since the beads were launched showed an average increase in sales of 14 per cent, with no cannibalisation of other categories in the stores.

 

“That’s a very promising sign for the first six weeks of a new category.”

 

The Karma Beads collection, described as a “completely new offering”, is a line entirely dedicated to beaded jewellery. It adds to Thomas Sabo’s existing Glam & Soul and Rebel at Heart ranges as well as its charms and watches offering.

 

Many industry members credit the proliferation of the beads and charms trend in Australia and New Zealand to Pandora. Since launching in 2004, the business has continued to increase sales year-on-year, with the latest results showing a 10.2 per cent rise in revenue for 2013 and a record profit.

 

As Edwards commented however, the market extends further with local retailers also stocking brands such as Trollbeads, Lovelinks by Pastiche and – up until it closed its doors in March last year – Chamilia.