Pandora reportedly mulls delaying brand relaunch in China

Danish jewellery maker Pandora reportedly mulls delaying its country-wide brand relaunch in China as customers' demands has yet to recover to pre-pandemic levels.

According to Reuters, Pandora's chief executive Alexander Lacik said earlier that the middle-income earners in China are much more careful as they are coming back to the market versus what the company saw in Europa and in the U.S.. Lacik added that the company still has a long way to go in terms of the traffic volume when compared to pre-pandemic levels.  

While the country only accounts for 3% of Pandora’s revenue, Pandora sees significant growth opportunities as China is one of the world’s largest jewellery markets. As of now, the brand has approximately 1,200 employees in China, with around 200 concept stores, owned and operated by Pandora across more than 70 cities in China, according to its website. 

MARKETING-INTERACTIVE has reached out to Pandora for a statement. 

Don't miss: Pandora and Keith Haring's latest collaboration goes beyond imagination

According to its annual report in 2022, China still falls in Pandora’s top seven key markets. Yet, when compared to 2021, its share of revenue dropped from DKK1,126 million (US$166m) to DKK737 million (US$109m) (-2%). The brand’s performance in China was significantly impacted by the widespread of COVID-19 restrictions.

Hence, the brand has postponed its investment to transform its business in China until market conditions stabilise. Regardless, Pandora still claims that China “remains of high strategic importance” to the brand.  

Although Lacik is satisfied with the outcome of 2022, he is still concerned of the prospects for 2023. The company expects that the year could bring anything from a negative organic growth of -3% to a positive organic growth of 3%. “We have started 2023 well with resilient growth and solid margins. Our investments in lifting the brand are paying off with good performance in our Moments base business and strong results from the newer platforms, Timeless and Pandora ME. It’s clear that we are increasingly the jewellery brand of choice, particularly for gifting occasions. The macroeconomic outlook remains uncertain, but we are confident in our ability to adapt and thrive as we’ve proven over the past few quarters,“ said Lacik.

Looking back, Pandora took its first step to reposition the brand in the fourth quarter in 2021 by among others increasing media investments. For instance, the brand launched a new store concept named “Evoke” in Guangzhou’s Grandview Mall in 2021 to build direct relationships with its consumers. By providing a personalised shopping experience while showcase its jewellery in an innovative way, it aims to draw Chinese consumers, especially Gen-Z consumers while standing out from its strong competitors. In 2021, the brand also appointed the popular singer Henry Liu Xianhua as its brand ambassador in 2021. 

Related articles:
Pandora partners UNICEF to unveil 'We Can Do Anything' charm for IWD
Case Study: How PANDORA engaged younger audiences to celebrate individuality
Pandora's Q1 financials hit amidst marketing tests for brand re-launch