Interpretation: Why Is The "Pandora" Of Denmark Growing Against The Trend Of High Consumption?

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And jewelry consumption is weak now, Danish light luxury jewelry.

PANDORA has been growing against the trend.

Its fast

The brand positioning and personalized marketing routes have helped them climb the peak of sales.

Fast fashion brands such as ZARA, H&M and others create "fast new", "price friendly" and "keep up with the trend" business philosophy. They are spreading to other fields, such as jewellery.

The Danish jewellery brand PANDORA (plated by Pandora) is a typical example of the quick fashion and successful counter attack.

Unlike traditional jewelry, PANDORA splits the ornaments into separate items such as bracelets, string ornaments and so on, and maintains 7 new rates per year according to different seasons and festivals. At the same time, aiming at the rising young consumers, it encourages them to freely choose thousands of different styles of pendants and Beaded Beads on the basic bracelet.

It is this design idea and sales idea that let consumers participate in the PANDORA to boost the sales peak. Since the first retail store was founded in Denmark in 1982, it has more than 11 thousand counters in more than 90 countries, with an average annual sales volume of 65 million and a 36% increase in the first quarter of 2016.

In the face of the weakness of luxury and jewellery consumption, how can PANDORA profoundly analyze the demand of fashion and personality of consumers and create "light luxury" jewelry that ordinary people can afford? What inspiration does the marketing logic behind it bring to us?

Fast fashion, clear brand positioning

In 1982, in the Danish capital of Copenhagen, a couple founded PANDORA. At first, it was a small workshops, inspired by the ancient Greek mythology, the "Pandora box", which was constantly tempting to open.

In 2010, PANDORA listed on NASDAQ and extracted the core of its own brand: "praise each woman's independent spirit and intrinsic value, help them find every memorable moment in their lives".

However, in the subsequent brand positioning, PANDORA has also gone through some detours.

In 2011, in order to move closer to big brands, PANDORA blindly increased the price of products, trying to upgrade to luxury level.

The move seems to be effective in raising gross margins, but it is also inappropriate for young jewelry brands that are fashionable and lacking in story elements.

The consequent loss of its original customer base was that its share price also plummeted by 66% on the day of price adjustment.

After the management of the big exchange and strategic adjustment, PANDORA finally decided between high-end jewelry and cheap jewelry "light luxury" positioning.

The first step in creating "light luxury" jewellery is price discrimination.

Unlike high-end jewellery that costs tens of thousands of dollars, PANDORA pricing is very close to the people. A set of custom Bracelet sold in China is priced at around 3000 yuan, which is a price acceptable to ordinary urban white-collar workers.

Just as its value orientation: the fast fashion brand, such as ZARA and silk, will create a luxury jewelry that ordinary people can afford, attracting young women in the middle class, taking into account their dual needs for good quality and first-line design.

In fact, like its Nordic party H&M, PANDORA's strength lies in knowing how to effectively integrate resources from all over the world in the context of globalization.

PANDORA CEO Massimo Basei of Italy has said that PANDORA completed in Italy, which specializes in jewelry design, and then produced in Thailand with relatively low labor costs and eventually sent to shops in more than 90 countries around the world.

It is clear that the "fast fashion" route similar to H&M and ZARA is clear. For PANDORA, further strengthening of brand labels is particularly important.

According to Basei analysis, when consumers are shopping, they do not know whether a brand decides whether they will go to that store, or whether they recognize whether a brand value added decides whether to buy it or not.

Just like when someone asks you the brand of your clothes, you answer "ZARA" confidently. When you ask the brand of your jewelry, you can also answer "PANDORA" without hesitation.

You know, any fast fashion brand wants consumers not to feel "down" or even to have a sense of pride.

So in advertising, PANDORA also mimics the fashion of fast fashion brands.

For example, the goods are displayed directly in the advertisement and the price is marked naked in the film.

"Is this picture familiar?" H&M did the same on street billboards, and in the store, consumers could not feel the solemn and solemn atmosphere in luxury jewelry shops, because our shopping guide would not be dressed in suits to receive customers, but to make the atmosphere as relaxed as possible.

Basei said so.

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Bring personalized customization to the extreme.

Throughout the 2015, many international luxury brands encountered the same predicament: Tiffany spent 11 years in the world, and its net profit fell by 10%; the high-end jewelry brands such as Cartire and Van Cleef & Arpels, which came under the name of the group, also declined to varying degrees.

By contrast, PANDORA's performance has been improving. In 2015, sales in all the world markets increased by two digits, of which the Asia Pacific region grew by 58.5%.

There is a view in the industry that the reason why PANDORA has been able to achieve an uptrend comes from its consumer led customization mode to the extreme: first, it can increase consumer participation and enable them to take the initiative to add emotional value to the purchase of hand strings; two, after buying them for the first time, they can constantly change pendants and beads according to the changes of festivals and mood, forming a long tail effect, and have the opportunity to get the lifelong value of consumers.

In the sales strategy, take the PANDORA core product, the hand string series as an example, it will split the string into basic bracelet, beads and pendants.

The basic bracelet is divided into two categories: gold and silver texture and leather rope.

In addition to the slightly higher gold base chain price, other materials are not more than 1000 yuan, the secret lies in its "Charm" beads, a basic chain can be linked to a maximum of 17 "Charm", representing each hand string owner life in 17 unusual commemorative moments.

After buying the basic chain, consumers will buy all kinds of "Charm" one after another and carry out DIY on their own.

Although a single "Charm" is not expensive, the entry cost is only 198 yuan, but it needs to form a complete string and replace it at any time.

At this time, PANDORA, like open Pandora treasure box, attracts consumers who pursue the trend to buy them one by one. The word "unfortettable moments" under the string of hands, "those moments you can't forget," is more like the opium poppy. When it is time, it reminds the owner to update different combinations according to his mood and experience.

In order to meet the needs of more free collocation, PANDORA has been developing new products. At present, more than 1800 different jewelry designs have been completed, and there are more than 600 kinds of light beads.

In 2014, Disney was awarded the right to cooperate. The series of beads launched by Disney once helped its sales volume rise sharply.

And the reason why products sell well is that PANDORA also embodies a consistent idea of "consumer standard" in design.

Unlike the luxury brand "design guided consumption" mode, PANDORA breaks the rigid template designed by the brand side, and widely collects consumer feedback and makes recommendations as a reference for product improvement.

For example, it surveys more than 8000 consumers every year, innovates at the origin of consumer demand, and designs targeted products according to different festivals or folklore characteristics of different countries.

After the completion of the design, the product will be tested in a small batch. If the sales volume is not good, it will be sold again after collecting consumer feedback and revisions. If the third trial sale is still failed, it will eventually be processed.

Satisfying unique psychological appeals

Luxury goods have always been the existence of "few people, most people yearn for", but young people do not buy it.

On the contrary, their pursuit of luxury LOGO is becoming weaker and weaker. What they value is the expression of their individuality. At this point, if the brand wants to succeed in capturing young people, they must put aside their shelves and get an in-depth understanding of who they are, what they like and what they prefer, and such an in-depth understanding can only be achieved in real interaction.

PANDORA, the main market for young people, is well aware of this.

Compared with the traditional jewelry brands like to create dreams for young people, PANDORA is keen to warn them to dare to face the reality.

If Tiffany's advertisement is characterized by warmth, such as: nestling in a small blue box hidden behind a warm dining table behind lovers, or carrying a blue shopping bag under four snowflakes.

PANDORA advertisements depict audiences more widely. These scenes include: the girl in love suddenly received the personal letter from the romantic country, and thought it was finally a confession, but the fact was a letter of rejection. The heroine thought that she received a Santa Claus gift, which was actually a joke of a frog.

The last thing to remind people is, "wake up! Life is not like a laugh you imagined."

Therefore, PANDORA hopes that every woman should have the courage to face up to the various scenes encountered in life, whether good, bad, or full of expectations, or even do not want to face them, and be good at turning them into memorable memories.

"PANDORA is not just a simple accessory. It has long been pformed into a desire for women to continue to expand. They are independent and confident, value their intrinsic values, and are always eager to express their individuality."

PANDORA Charisse Ford, chief marketing officer of the Americas explains.

In order to better gather the mainstream consumer groups of the new generation, PANDORA is widely used in social media such as micro-blog, Instagram and Facebook, which are popular among young people.

Its official website and brand online monthly will also release numerous trend information and collocation guides at the same time.

Take the design tool of hand strings and rings, which was launched by China's official website in 2015, for example, it encourages consumers to match, browse and share their design works online. In the first 11 months of 2015, the number of visits reached 104 million.