If Agoa falters: jewellery exporter makes plans

Luxury South African brand thrives in the US, but it is wary of the possibility of sanctions

Luxury jewellery brand Pichulik is one of the thriving local companies at risk of losing preferential US market space if South Africa is excluded from the African Growth & Opportunity Act (Agoa) arrangement.

Billions of rand in trade with the US flows in South Africa’s direction under Agoa; it gives certain companies tariff-free access to the US market, and constitutes about 30% of total sales. But because of this country’ssupport for Russia in its invasion of Ukraine, it is in danger of losing these benefits. The Agoa arrangement is up for consideration again in 2025.

Tracey Chiappini-Young, joint CEO and commercial director of Pichulik, is already considering alternative markets in case Agoa goes or the US sanctions South African companies.

The potential setbacks come at the time when the business has doubled in size since before Covid. It was selected by media company CondéNast as a brand partner for the opening of a new Atlantis Royal hotel in Dubai, when 2,500 of Pichulik’s signature “Between Us” Joy bracelets were bought for guests.

“To deliver that in a four-week turnaround was testament to effective supply chain management,” Chiappini-Young says.

The business was also a retail brand partner with LVMH for its Starboard cruises, and it’s been named by the fashion organisation Institut Français de la Mode in Paris one of the top emerging African design brands.

The company was started a decade ago by Katherine-Mary Pichulik, who is creative director and joint CEO.

She and Chiappini-Young own the business and have restructured operations to ease supply and demand shocks and accelerate growth.

Part of that is a disciplined approach. Payment is upfront, in cash. The company does not accept 60-day post-delivery payment, even if it means turning awaybusiness, Pichulik says. In most cases, she says, customers have agreed to this.

“We’re a small South African boutiquebusiness. We’re not pretending to have the balance sheet and resources to play in a space we can’t operate in. The customers who want to work