Why Has Pandora Grown So Fast In Recent Years?

Compared with Tiffany Tiffany and other jewellery

In the performance setback, Pandora is like a dark horse, which successfully convinced consumers to believe that the Pandora you bought is the only product in the world.

The picture shows one of the stores.

Denmark jewelry brand

Pandora's brand is inspired by Greek mythology, and its growth in recent years has become a myth of the industry.

In the weak market environment of luxury and jewellery consumption, Pandora has achieved two digit growth over the past four years, and its profits have maintained double-digit growth on average. The company's share price has increased by more than 3 times since its listing in 2010.

In the second half of this year, the group's market value exceeded 100 billion yuan.

It is noteworthy that the group has also become the first, third, fourth largest supplier of jewelry to SWAROVSKI after globalization, and the other is SWAROVSKI, Tiffany and Cartire.

Up to now, Pandora has rapidly developed into the third largest jewelry brand in the world.

Pandora was founded in 1982 by goldsmith PerEnevoldsen and his wife Winnie in Copenhagen, Denmark.

At first, the couple often went to Thailand to look for imported jewellery. As the demand for product orders increased, they gradually began to turn Thailand jewelry to wholesale Danish customers.

In 1987, after several years of wholesale business, two couples raised a huge sum of money. The company also moved to a bigger venue and ushered in the first jewelry designer.

Since then, Pandora has begun to focus on creation.

Their own unique jewelry.

In 1982, Danish goldsmith PerEnevoldsen and his wife, Winnie, opened a jewelry store in the simple capital of Copenhagen.

In 1989, the company decided to start factories in Thailand to produce jewellery.

In 2000, Pandora launched the first concept of charisma Bracelet in Denmark, and was actively inspired by the market reaction, and encouraged by the growth of consumer demand, the group began to enter the global market area.

Pandora officially entered the US market in 2003, and then extended to Germany and Australia.

Over the next few years, Pandora quickly became the third most important distributor in Thailand and the international marketing and retail platform with strong productivity.

In order to further increase its capacity, Pandora built a six storey manufacturing plant in Thailand in 2005. In fact, it is also a moat for Pandora profit growth because its cost is very low in Thailand, where cheap labor is concentrated in Southeast Asia.

With the fast fashion mode, Pandora has more than 700 unique bracelets and pendant styles.

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Why did Pandora grow so fast in recent years? More frankly, how did Pandora buy the addicts of female consumers? Some analysts believe that the important reason for their success is the participation of Pandora products. The secret of Pandora is to make their products the media that interact with consumers, that is, their products themselves have a sense of participation, so they have received the warm pursuit of consumers.

The most amazing thing about Pandora is that through your unique marketing means, the Pandora bracelet you buy will be unique throughout the world.

Pandora has introduced a distinctive patent concept, which can choose pendants and bracelets and personalized personalized bracelets.

The design of the Pandora pendant bracelet is to enable female consumers to achieve a kind of personality that can still be highlighted in the crowd, so that they can participate in the design of their jewelry and express their own aesthetic.

In the design concept of Pandora jewelry, the opportunity to provide personalized jewelry for customers is a very important part.

Consumers can arrange two combinations of beads with different combinations of beads, because people will choose different beads according to their preferences and significance behind them.

Apart from a unique personality, each bracelet pendant has its own meaning behind it, such as the date of your birthday, the heart shape representing love, the commemorative day expressed by numbers, the mother of the baby carriage, and so on.

The slogan of Pandora is UnforgettableMoments (unforgettable moment), just like someone who wants to retain some memory to tattoo, these beads symbolize all kinds of commemorative days, so that women like the instinct to buy jewelry because of commemoration, and give meaning to the product itself, so that the pendant of Pandora will be favored.

In economics, goods are actually divided into four stages: product, commodity, service and experience.

For consumers, uniqueness is the most special experience. Consumers are willing to pay a premium for something unique.

Why is Starbucks's product so expensive? Because it sells not coffee, but a customer experience.

Unlike other jewellery brands that sell pendant bracelets, Pandora focuses on making bracelets, so when referring to DIY's Pendant Bracelet, consumers first think of this brand. This brand association has virtually increased brand cohesion.

Pandora has more than 700 unique bracelets and pendant styles.

Consumers can also freely match different styles of bracelets on different occasions.

A basic chain attracts female consumers to buy Pearls on the top.

In addition, according to the trend of fashion, Pandora uses the fast fashion operation mode, and almost every month has a new listing to stimulate the fashionable female consumers.

Last year, Pandora and Disney reached a cooperation agreement to introduce Disney's classic animation into their jewelry design, boosting sales growth.

In order to launch these new models, Pandora official website will do online magazines every month, introducing new products and combining fashion trends to convey a fashion concept.

Let online become brand experience shop

As a jewellery brand, Pandora has a lot of action in digital marketing.

The jewelry brand is more noble and colourful in the consumer's impression, but Pandora shows an affinity. It can see the interaction and communication between Pandora and consumers on micro-blog, Instagram, Facebook and other social networks.

In addition to the role of communication, the online platform provides consumers with experience functions.

Because there are too many options, when consumers first enter the Pandora retail shop, it does feel a bit overwhelming.

Where do we choose to start? What is the color theme? The best seller's letters, symbols and numbers can be used in the official website by the consumers themselves online, which is also an important driving force for consumers to enter the store.

When consumers design their Bracelet online, it will be easier to deal with these big and small problems.

On the Internet, you can try some crazy and bold designs freely, and also have time to choose the ornaments and change the original intention slowly.

Reviewing the development course of Pandora is actually a great change in the psychology of consumer choice in the past decades.

Consumers purchase a commodity, from the earliest functional consumption to the later brand consumption, to the popular experiential consumption in recent years.

The participation of consumers can meet the psychological needs of the participants and stimulate the consumption appeal of individuality.

Whether in the experience store or on the official website, choosing pendant and bracelet is the process that consumers participate in the design and tailor for themselves, and such a special Pandora bracelet is also gradually expanding its influence on the brand.

According to the world clothing and shoe net, in Europe's luxury fashion brands except Italy, the fastest growth in profit before tax depreciation and amortization in the first half of this year was Pandora, up to 37.2%, followed by LVMH's record of 21.9% and parent company Inditex of Zara 20.2%.

In the third quarter, Pandora performance continued strong growth, sales recorded 4 billion 600 million Danish kronor, profit margin before tax depreciation and amortization was 39%, higher than previously expected 38%, net profit was 1 billion 400 million DKK, last year's data was 1 billion DKK, exceeding analysts' expectations.

The new autumn products launched by Pandora in October, including the Pandora rose series, contributed a lot.

During the period, about 50% of turnover was generated from products launched in the past 12 months.

It is noteworthy that Pandora consumers are very sticky, especially for female consumers.

Up to now, Pandora has more than 2000 independent stores in more than 100 countries around the world.

Group CEOAndersColdingFriis said earlier that the expansion of global store network has led to sales growth. In the past year, Pandora has added 405 concept stores and 118 stores, and has greatly reduced its cooperation with multi brand retailers.

By 2018, the group plans to add 200 to 300 stores a year, of which 20% is located in the Asia Pacific region. This year, Pandora is expected to add 275 stores more than previously estimated 250.

Although Pandora is not directly comparable to Tiffany, Pandora's strong growth suggests that the most common driving force for jewellery consumption is changing compared with the gloomy performance of Tiffany in the past year.

Generally speaking, style, gem color and high price are the main purposes for people to buy jewelry. Pandora has changed the conventional way, combining the unique style design, exclusive customization and meaning. The most important thing is the meaning.

The goal of Pandora is to become "the most beloved jewelry brand in the world", and the way to achieve this goal is to create every souvenir into a special souvenir in the life of consumers. Giving gifts to others is most appropriate.

Some industry analysts pointed out that the reason why Tiffany failed was due to the fact that the same old products were sold to young consumers who are seeking fresh and new products. More and more millennials feel that Tiffany is getting old.

The millennials now prefer new brands.

EdwardJones analyst BrianYarbrough said high-end fashion retailing is becoming more and more difficult and department stores are struggling. Young consumers are constantly pursuing new tastes instead of having the same product that everyone has. That's why they prefer Pandora now because they can wear thousands of different bracelets on their hands, and you can't have them in Tiffany.

According to PamelaDanziger, an analyst at UnityMarketing, a market research firm, Pandora and AlexandAni, the two brands are dividing the market share of Tiffany, and more importantly, they offer customized jewelry services that attract young consumers.

From the global market perspective, Tiffany is almost in a state of overall setback.

In the third quarter of this year, it recorded the slowest growth in 5 years except in other parts of China.

According to the latest financial report of the group, Pandora has not yet fully opened up the market of China's largest jewelry consumer country. As of now, there are less than 100 stores. In order to expand the Asia Pacific market, in January this year, Pandora repurchased 15 conceptual stores and 5 shops in Singapore and Macao at the cost of $22 million, and reclaimed Philippines's distribution rights at the cost of $22 million. This strengthened the brand's recognition in the fastest growing Asia Pacific region.

Pandora is the largest market in the United States and Europe, while China's Pan Pacific region is only about 10%.

But China's sales growth is staggering, which is two times that of other markets. In October 28, 2016, Pandora's official flagship store in Tmall entered China's online market. There is reason to believe that Pandora will bring more surprises to the industry after the mainland market is fully opened in the future.

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