Jewelry stores have struggled for several years due to a weak economy, high gold and silver prices, and competition from cheaper Asian manufacturers. Chamilia, a designer and manufacturer of personalized accessory jewelry, has positioned itself as a savior to jewelry stores, reports the Star Tribune. The company has experienced 70 percent year-over-year growth and annual sales exceed $100 million thanks to jewelry stores like Bergstrom, who have added Chamilia’s products to their mix of traditional gold and diamond jewelry.
Chamilia’s products have increased foot traffic to the store by more than 20 percent. According to Steve Moore, a partner with consumer private equity firm Brentwood Associates, “While a traditional shopper might only visit a store once, maybe twice a year to buy one high-ticket item, fans of companies like Chamilia and Pandora will frequently return to buy more beads and charms for their bracelets and necklaces. Chamilia gives customers a real reason to build on the product.”
Brentwood Associates is a major investor in Chamilia. Just recently, Austria-based retailer Swarovski bought a stake in the company and is rolling out Chamilia merchandise throughout its stores to help boost its lagging sales, and it seems to be working. “We’re quite happy with the results,” says Sandro Brodbeck, vice president of business development for Swarovski.