On 1 November, Pandora’s Q3 2021 report announced a disappointing 35% drop in sales across China, despite a 14% global organic growth year on year. In an effort to turn this around, the jewellery maker is set to invest 199 million RMB ($31 million) into the Chinese market, launching a transformation plan including more cooperation with social media celebrities and enhancing its marketing strategies.
As the world is recovering from the Covid-19 pandemic, Pandora is ramping up in its global sales, as more people are allowed to gather socially and therefore show their new jewellery.
As the US and European markets reopen, consumers quickly resumed their exploration in the jewellery world. For instance, lab-made diamonds in the UK were immediately popular amongst young people for their sustainable features and lower prices. These markets opening and such innovations as lab-made diamonds have accounted for the 14% growth the company has made, however, things are a bit different in China.
During the pandemic, over 70 of Pandora’s Chinese stores were forced to close whilst the remaining stores saw few customers. This came as a result of 75% of Chinese people reducing the budget or postponing their shopping on apparel, due to an increased pessimism about the economy.
In comparison to 2019’s first six months of sales, Pandora’s have reduced by 32% this year, a sharp decline and reason for their latest investment. Whilst these figures are obviously poor, there is room for optimism here, due to the loss of revenue an external issue that is on the path to being resolved.
In fact, Pandora is one of the most well-known and beloved jewellery brands in China. After entering the Chinese market in 2015, Pandora rapidly increased its store numbers to 240 in less than 4 years, highlighting the immediate success they had within this new market.
It is particularly famous for beaded products. However, by the same token, this has caused Pandora issues, with this becoming their only product in a lot of Chinese consumers eyes, who have in turn neglected their larger product range, contributing to their poor sales performances.
As Pandora’s global market reboots, now is the right time for the jewellery giant to push further into the Chinese market and cheer it up from the pandemic hibernation.