While Designa Accessories (DA) general manager Justin Veil said he was excited to represent the brand, known for its beaded jewellery, he added it would not come without difficulties.
It’s widely recognised that Trollbeads has had an “unsteady” run in Australia and New Zealand, having previously had two suppliers and since December last year, when R J Scanlan & Co decided to cease its local distribution, product has been supplied directly from Denmark to local stockists.
Additionally its new range, X by Trollbeads, was caught up in the unexpected closure of its local supplier House of Brands (HOB) before it could gain traction in the market.
Veil stressed that a great deal of consideration and research was undertaken before signing the deal with Trollbeads and his commitment to the brand was evidenced by DA creating a new jewellery division within the business.
The Sydney-based supplier will begin re-introducing the brand slowly under a limited distribution policy – something that could be afforded as the Danish company also recognised some brand rebuilding needed to be undertaken.
“We believed if we were to take the brand on a long-term distribution contract, we could get the market to believe in Trollbeads again. We know the concept in Australia has been loved before. It is [the concept] incredibly well understood by retailers here; personal purchases and repeat purchases is what it’s all about and we know we have a massive corporate competitor out there but we know we are different in our designs and our philosophies,” Veil said.
“They [Trollbeads] told us to build the brand’s distribution correctly and slowly and with the right partners who believe in the Trollbeads and know what it can do. We’re not about forcing people to take it,” he explained.
Veil added that retailers would have greater confidence in the product due to the backing of DA and the fact the business had operated in the industry for nearly 30 years. He also stated that “we’re going slow and we’re not trying to build it overnight and we want to gain their [retailers’] confidence in the brand again and that’s a fact”.
Extensive due diligence
It’s understood that Trollbeads conducted extensive due diligence before making a decision about the brand’s local distribution and the strategy for X by Trollbeads.
It first approached a number of local suppliers in March to sound them out about distribution rights for the Australian and New Zealand markets, and then a senior company representative travelled to Australia for a number of meetings with potential distributors.
After indentifying a short list and seeking “references” from major retailers, DA was identified as the most suitable “partner”. Les Veil, managing director DA, then visited Trollbeads in Copenhagen after BaselWorld in April to ensure there was synergy between the two companies and a mutually acceptable marketing strategy could be agreed.
Following further negotiation and discussions, Justin Veil travelled to Denmark two weeks ago to sign a formal distribution contract.
Veil was excited about the deal saying there was a lot of commonality because Trollbeads, like DA, was still a family business.
“They loved the fact that we’re a family-run company like them. They also called many industry leaders such as Myer and Prouds for opinions. What impressed me about them [Trollbeads] is the passion for design, and their passion for doing something they believe in – they just don’t pump out beads.”
Veil added he was also impressed by the history of the company and the fact that the bead category was “created” by Trollbeads.
“Every bead has a story and that’s not a marketing slogan. Every single bead they do has a story behind it and they have 15 to 20 different designers.”
Veil confirmed that in addition to the core bead product, DA would also distribute the brand’s X by Trollbeads range.
The innovative X by Trollbeads collection – a concept based on allowing the wearer to create their own unique bracelet and necklace from a range of different links – underwent a simultaneous worldwide release in September 2013. It was initially launched in the local market by HOB, however, the product’s acceptance was harmed by the sudden closure of the business in March.
Veil explained that its focus for the distribution of X by Trollbeads might differ from the core Trollbeads offering.
“While our focus for jewellery stores is the Trollbeads normal [core] business, when it comes to X by Trollbeads we might look to expand its distribution into other areas.”
New jewellery division
DA has held the Guess watches distribution rights in Australia and New Zealand since 1986 and while it has been responsible for Guess jewellery, its core focus has traditionally been watches.
However, the company signalled a shift in early 2013 when it secured the UK-based jewellery brand, Hot Diamonds. Adding a second high-profile jewellery brand to the DA stable has allowed the company to create a jewellery division.
“Designa now has a jewellery division with Guess jewellery, Hot Diamonds, Emozioni by Hot Diamonds and [now] Trollbeads. We have someone managing that whole side of the business; meaning we’ve separated them from the watch business.
“We think they [all jewellery brands] fit well together and that’s the reason we have created the whole new division in our company that just looks after the jewellery,” Veil explained.
Veil said he was now busily planning and designing various stands for the upcoming JAA International Jewellery Fair in Sydney.
“We will be showing the brands [Trollbeads and X by Trollbeads] at the Sydney jewellery fair and hopefully get people to give them a chance again and to believe in the brand. Hopefully people know that Designa is not a flash-in-the pan type of company. We’ve been here for a long time, so the trust in Designa is what we hope retailers will believe in and take into account when it comes to a relaunch of Trollbeads in Australia.”
DA watch brands include Guess, GC, Maxum, Timex, Nautica, and UNLTD.
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While Designa Accessories (DA) general manager Justin Veil said he was excited to represent the brand, known for its beaded jewellery, he added it would not come without difficulties.
It’s widely recognised that Trollbeads has had an “unsteady” run in Australia and New Zealand, having previously had two suppliers and since December last year, when R J Scanlan & Co decided to cease its local distribution, product has been supplied directly from Denmark to local stockists.
Additionally its new range, X by Trollbeads, was caught up in the unexpected closure of its local supplier House of Brands (HOB) before it could gain traction in the market.
Veil stressed that a great deal of consideration and research was undertaken before signing the deal with Trollbeads and his commitment to the brand was evidenced by DA creating a new jewellery division within the business.
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