Uniquely HK

Brand Story

Pandora: A charmed success

A decade ago, nobody had heard the name. Today, Pandora is almost a household name, and its rise from anonymity one of the more remarkable success stories in recent times. Its boom can be credited to a highly successful marketing campaign, an aggressive expansion of branded sales channels, and at the root of it all, a product that resonates with customers…

The concept is simple enough: a charm bracelet of silver, gold, gemstones and glass. Customers are given free rein on how to craft it – they can start with one charm and complete a bracelet over the course of months, or they can assemble a complete, unique piece in one purchase.

This reminds me of that Christmas I spent in Vienna, she might think as she plays with the snowflake-shaped amulet on her wrist. This is exactly why Pandora is so popular: it resonates with customers’ emotions, memories and need for self-expression.

Pandora began life in 1982 as a small jewellery shop in Copenhagen. Danish goldsmith Per Enevoldsen and his wife Winnie often travelled to Thailand in search of jewellery for importing. After establishing a good contact in Thailand, Enevoldsen began arranging to have his own designs produced. When sales continued to increase, he decided to establish his own manufacturing operation in Bangkok and moved to Thailand in 1989. Today, Pandora operates and manages a vertically integrated business model from in-house design and manufacturing to global marketing and direct distribution. The result: a business that has grew spectacularly over the last decade, and a brand whose awareness and followings are increasingly global. Pandora jewellery is sold in more than 80 countries on six continents, employing over 11,000 people.

From a modest turnover of around US$4.5 million in 2002, the company enjoyed high double-digit growth almost every year, racking up an impressive US$1.6 billion in sales in 2013, making it one of the largest and certainly the fastest growing jewellery companies in the world.

Craftmanship

Pandora’s spectacular success can be attributed to a relentless emphasis on controlling each aspect of its product’s value chain to ensure consistent promotion of its core brand values: affordable luxury, contemporary design, and personal story telling. A key element of the business model is the aggressive expansion of its branded sales channels, comprising a combination of Pandora Concept stores, shop-in shop and Gold stores. Today, more than 80% of its sales are moved through these stores.

Another remarkable attribute of Pandora is the appeal of its product to a wide demographic base which range from 15 to 80 years old. The fact that a beginner Pandora collector can start with a modest budget to purchase the bracelet as a starter set and can purchase one of its pieces for around US$50 and do it incrementally, certainly helps to broaden its appeal. Charm bracelets remain by far Pandora’s primary product group, bolstered by the introduction of its Essence Collection in 2013 to augment its mainstay Moments series; However Pandora has been busily diversifying its product range from rings to watches, hoping to horizontally cross-sell to its ever growing customer base.

In Asia, not surprisingly, the company is looking to expand rapidly, taking advantage of many of the world’s largest and fastest growing emerging economies. After establishing its initial presence in Hong Kong -opening its first store in 2010, the company has expanded to other markets including Malaysia, Singapore, South Korea, Taiwan, and of course, Mainland China. Given its fantastic track record elsewhere, expect Pandora to do likewise here in Asia- the room for growth is limitless.