Cbs Case Competition GLOBAL 2022

CBS CASE COMPETITION
GLOBAL 2022
CBS CASE COMPETITION GLOBAL 2022 2
Legal Disclaimer
The information presented within this case is the responsibility of the writers
alone. Pandora is subsequently not responsible for any statements, data or
citations put forward in this case. This document cannot be used as a supporting
source outside of CBS Case Competition 2022 and may not be publicly quoted
without the written consent of the authors.
ACKNOWLEDGEMENTS
Case Writers
Amandus Witt Brückner, CBS Case Competition 2022
Ray Ga Ming Li, CBS Case Competition 2022
Christian Endres, CBS Case Competition 2022
Josephine Amalie Mærsk-Møller, CBS Case Competition 2022
Special thanks to
Pandora Group
Torben Indahl, Manager, Strategy & Business Development Advisors
Agnese Montagner, Project Manager, Strategy & Business Development Bianca Pollock, Bain & Company
Thomas Adner, SVP Strategy & Business Development Aram Griens, Bain & Company
Kate Walsh, SVP Omnichannel Retail
Raul Duque Ruiz, SVP GBU New Style & Upstream Innovation Case Testers
Mads Twomey-Madsen, VP Corporate Communications & Sustainability Laura Hönig
Marissa Saretsky, Director, Corporate Sustainability Charlotte Reeves Jensen
Victoria Eliseeva, Director, Digital & Technology Strategy Mette Mathiasen
LETTER FROM
THE CEO
I am happy to announce Pandora as the case compa- At Pandora, we believe there is still plenty of poten- to find a way to establish long-lasting relationships
ny for GLOBAL CBS Case Competition 2022. tial to grow our core business. This can be achieved with these groups, which requires new perspectives
by both strengthening our position in the affordable from talented individuals like yourself.
Since our founding in 1982, Pandora has grown from jewellery market, as well as in the countries where
being a small jewellery shop in modest surroundings we have established strong operating units. We This is our challenge and, therefore, I would like to
in Copenhagen to being the world’s best-known strive to make clear and focused choices in what the ask for your input on how we, at Pandora, can reach
jeweller. Pandora established a global foothold with next step for Pandora should be. In order to exploit even more Millennials and Gen Z consumers, as
the launch of Pandora’s charm bracelet line, which the high growth levers, we are highly selective and these are vital consumer groups for us to expand in.
to this day still makes up the core of Pandora’s only invest in financially sustainable propositions. We have set ambitious goals for this next chapter
business. Furthermore, we want to ensure that each big ven- of our journey. The destination has been set, but we
ture has the sufficient resources to succeed and is need help to get there.
2021 has been a great year for Pandora Group. We aligned with the entire value chain. At the end of the
have recently launched our new strategy, which day, we know that excellence in execution is what We, at Pandora, hope that this case will challenge
concludes the end of a big organisational transfor- truly matters. you and we are eager to hear your perspectives on
mation and welcomes a new chapter of growth for this challenge, which will hopefully aid us in our jour-
Pandora. With our new strategy Phoenix, we aim to During our turnaround, we have recognised that ney forward. Thank you for your effort. We wish you
push Pandora towards being the most desirable Pandora still has work to do to cement our place in the best of luck.
brand in the affordable jewellery industry. We be- our customers’ hearts. Going forward, one of the
lieve this is possible by leveraging our strong brand key priorities in this endeavour is to connect with
awareness, our broad distribution network, and our and stay relevant to consumers across the Millen-
strong manufacturing capabilities, while also looking nials and Gen Z, which is vital for remaining at the
beyond our core assets, which will ultimately aid us forefront of our agenda of being the most desirable ALEXANDER LACIK
fuel our brand desirability. brand in the affordable jewellery market. We need CEO & President of Pandora
SETTING THE
STAGE
Over the past decade, Pandora has built the world’s improve production costs and inventories. Despite Pandora has set clear goals and recognised many
biggest affordable jewellery brand, measured both COVID-19 related disruptions, the two-year strategy opportunities worth exploring, yet we are unclear
by number of jewellery pieces sold to consumers was completed in 2020 and the company is well on on how exactly we will get there. And this is precisely
around the world and by consumer awareness of the its way to entering the next growth phase. why you have been tasked to help Pandora on its
Pandora brand. journey onwards. As a result, your challenge will be
Over the next four years, Pandora will move into the following: How can Pandora grow its customer
Over the last couple of years, following a period of the next chapter of growth with the objective of base within Millennial and Gen Z consumers and
revenue stagnation in 2018 and 2019, Pandora has becoming the largest and most desirable brand in achieve an annual revenue growth of 6 to 8% in line
executed a successful turnaround by going back to the affordable jewellery industry. As part of this with the targets set in the Phoenix Strategy?
its core DNA of personal expression and collectable growth journey, Pandora has launched its new strat-
jewellery. The company has worked to restructure its egy ‘Phoenix’ to drive long-term sustainable and Your team now has 24 hours to develop a recom-
business under the strategy “Programme NOW” with profitable growth across its existing core business- mendation that can support Pandora in its next
initiatives to re-establish its competitive position- es. One of the success criteria in this strategy is to phase of growth. Your recommendation should
ing, strengthen the relevance of the brand to con- successfully target new groups of shoppers to fuel be scalable across regions (potentially globally) to
sumers, and stabilise the top line while maintaining their brand desirability and reach. The future of the enable Pandora to deliver on its targets. This will re-
industry leading margins. affordable jewellery industry will increasingly consist quire innovative thinking, as we encourage you to be
of Millennials and Generation Z (Gen Z) consumers, creative and not be restricted by Pandora’s current
A new operating model has resulted in significant as they will make up 60% of the market by 2025, trajectory. Additionally, a successful proposal must
benefits. Since August 2019, the company has seen making it crucial for Pandora to both reach these be a valid business case and in line with Pandora’s Remember to take a
an impressive recovery under a new management consumers and establish meaningful and lasting purpose and ambitions. look at the accompany-
team. In the two years since the launch of Pro- relationships. ing Excel workbook for
gramme Now, Pandora has turned itself around after Your recommendations will be evaluated equally on additional information
successfully halting the decline in revenue. Further- “Our objective is to be the largest and most desira- the following criteria: on store development,
more, Pandora has achieved sustainable profitability ble brand in the affordable-jewellery market, and we • Creativity of the solutions and bold ideas revenue split, financial
by reducing costs in day-to-day operations, specifi- have a strong foundation to deliver on that objec- • Feasibility of implementing the recommendations statements, selected
cally in production, stores, IT, and administration, as tive.” – Alexander Lacik, CEO & President of Pandora • Validity of the business case demographics and
well as by simplifying their portfolio of products to • Visualisation of presentation and storytelling other data points
5
CONTENTS
INTERNAL EXTERNAL
6
INSIDE
11
STRATEGY
34
THE JEWELRY
PANDORA INDUSTRY
12 Phoenix Strategy
7 Timeline 13 Core Markets 35 The future of the affordable jewelry industry
8 Purpose & strategic objective 14 Design 36 Branded vs. Unbranded jewelry
9 Organization and key capabilities 15 Personalization 36 Emulating fast fashion
10 The business model at a glance 16 Brand 37 Moving sales and communication online
38 The competitive landscape
17
CAPABILITIES
26
UNDERSTANDING
39
CONSUMERS TRENDS
OF PANDORA PANDORA’S
40 Consumer behavior and attitudes
CUSTOMER BASE
18 The Pandora network 41 Outlook for Millennials and Gen Z
20 Building for a digital future 42 Consumer attitudes in North America
27 Enduring Concept Platforms (ECP)
25 Product portfolio 43 Consumer attitudes in Asia Pacific
30 Sustainability initiatives
31 Snapshot of Pandora’s financials
32 Distribution and communication
44 Closing statements
45 Appendix
46 From idea to finished product
47 Unaided brand awareness across core markets
48 Roll out of digital initiatives
6
INSIDE
PANDORA
7 Timeline
8 Pandora’s Purpose & Strategic Objective
9 Organization and Key Capabilities
10 The Business Model at a Glance
TIMELINE
The Pandora story all started in 1982 in a small jew- In 2000, Pandora’s charm bracelet concept was Today, Pandora is a leading, global jewellery man-
eller’s shop in modest surroundings in Copenhagen, launched in the Danish market. Consumers em- ufacturer and has become the signature brand for
Denmark, and was founded by Danish goldsmith Per braced the concept and in the following years, its production of Danish jewellery and for its charm
Enevoldsen and his wife Winne Enevoldsen. From the driven by growing demand, the company began to bracelets. Pandora’s products are available in more
very beginning, they would often travel to Thailand expand internationally, entering new markets such than 100 countries on six continents through more
in search of jewellery to import. As demand for the as the United States, Germany and Australia. In the than 7,000 points of sale, including around 2,600
products increased, their focus gradually shifted following years, Pandora both rapidly expanded its concept stores.
towards wholesale to clients in Denmark. market presence to an international sales platform
as well as increased its own production capacity,
opening four production facilities in Thailand.
1982 - Per and Winnie 2003 - Pandora enters 2008 - Danish Private Equity 2010 - Third and fourth production facility is inaugurated 2017 - New crafting facility
Enevoldsen found the American and Cana- firm, Axcel, acquires 60% of in Thailand. Public listing on the NASDAQ OMX Copenhagen opens in Lamphun, near Chiang
Pandora dian markets Pandora. Pandora inaugu- stock exchange. Pandora launches Black Crown Diamond Mai in Northern Thailand
rates its second production Watches. Pandora enters new, large markets including Russia,
facility in Thailand. Pandora Italy, and China. Pandora acquires full ownership of its distri-
launches LovePods bution in Australia and Central Western Europe
1989 - Company starts 2005 - Pandora opens its 2012 - Pandora celebrates 2014 - Pandora signs a stra- 2019 - Pandora kicks off
manufacturing its first large scale, fully owned its 30th anniversary. New tegic alliance with The Walt global brand relaunch
jewellery in Thailand production facility in Gem- pavé products are launched Disney Company. Ring sales
opolis, Thailand. Pandora reach 10% of Group revenue
establishes its presence in
the UK and in Spain
1987 - First in-house 2004 - Pandora enters 2009 - Subsidiaries are established 2013 - Pandora ESSENCE Collec- 2016 - New Lockets concept
designer joins Pandora new, large markets, in the UK, Hong Kong, and Poland. tion is launched. Concept store is launched. Concept store
including Australia and Pandora launches Liquid Silver no. 1,000 opens no. 2,000 opens
Germany
2000 - Pandora 2007 - Pandora 2011 - New necklace concept is launched. Pandora takes over 2018 - New Leadership in 2020 - Pandora launches its
introduces its charm launches its Compose direct distribution in France. Pandora opens store number Energy and Environmental Digital Hub close to its global
bracelet earrings concept 100 in Asia. Company appoints its first Chief Creative Officer. Design (LEED) Gold crafting headquarters in Copenha-
+1 million Pandora fans on Facebook, +2 million Pandora Club facility is inaugurated in gen, Denmark
members Gemopolis, Thailand
8
PANDORA’S PURPOSE
WE GIVE A VOICE
TO PEOPLE’S LOVES
PANDORA’S STRATEGIC OBJECTIVE
TO BE THE LARGEST AND

MOST DESIRABLE BRAND
IN THE AFFORDABLE
JEWELLERY MARKET
ORGANISATION AND
KEY CAPABILITIES
Entering new markets early on in the company’s his- Corporate authority is shared between the board
tory was largely brought about through third party of directors and executive management, which exist Board of Directors
distributors, which allowed for rapid expansion. In independently of each other. The board outlines the
2020, with the completion of Programme NOW, overall visions, strategies and objectives of Pando-
Executive management
Pandora was reorganised to move closer to con- ra’s business activities and supervises the perfor-
sumers. Local markets were brought closer to the mance of the executive management. The members Alexander Lacik
Global Office by dismantling three regional organi- of the executive management are appointed by the CEO
sations and, instead, setting up two global business board. The executive management is responsible for
Erik Schmidt Anders Boyer
units with product responsibility across the full day-to-day management and for the execution of CHRO CFO
value chain. The Moments & Collaborations Global Pandora’s strategy. The members of the executive
Business Unit is responsible for the core products, management team are responsible for the day-to- Jeerasage
Stephen Fairchild Puranasamriddhi
CPO
including Pandora Moments, Charms and collabo- day operations of their respective business areas, CSO
rations, while the Style and Upstream innovation while also being part of the overall management of
David Walmsley Martino Pessina
Global Business Unit drives development of newer Pandora. CDTO CCO
product categories and innovations. The new units
are responsible for concept development, design, Carla Liuni
CMO
execution, and marketing plans across the full value
chain. The organisational restructure has enabled
Pandora to move more towards own-operated retail
stores, allowing for greater control, and to stream-
line channels globally.
Among other benefits, the reorganisation has

enabled faster decision-making and better collab-
oration in the company. It has also improved supply Global Business Units Clusters
chain management and merchandising, and led to
Northern
higher conversion rates. North America Latin America Pacific China Europe
Moments & Style & Upstream
Collaborations Innovation
Southern Western Eastern British Isles
Europe & MEA Europe Europe
THE BUSINESS MODEL

AT A GLANCE
Pandora operates and manages a vertically inte-
grated business model, from-in-house design and
crafting to global marketing and direct-to-consumer
distribution in most markets.
KEY RESOURCES LEVERAGING KEY RESOURCES TO CREATE VALUE VALUE CREATED
Brand Design Consumers

Pandora is known by more consumers than any other Building on deeper consumer insights and trend re- In 2019 and 2020, Pandora had more than 650 mil-
jewellery company. search, the design team provides the creative inspi- lion yearly visits to their physical and online stores.
ration for the launch of more than 400 new design Consumers wear their affordable luxury to express
Employees variations each year themselves and share their passions.
26,000 talented employees work across a fully inte-
grated value chain. Crafting Community
Pandora’s crafting capacity is the largest in the industry Pandora directly sustains tens of thousands of jobs
Data & technology and provides flexibility and scalability, enabling the at Pandora and their franchise partners. By spend-
In-house digital capabilities enable Pandora to company to craft hand-finished jewellery from pre- ing billions on goods and services, Pandora creates
create an exciting and personal shopping experience cious metals at affordable prices. growth and jobs among their large network of sup-
across all channels. pliers. Pandora pays corporate tax in the countries in
Marketing which it operates and ranks consistently among the
Stakeholder relationships Pandora uses data to reach specific audiences with ten largest taxpayers in Denmark.
Pandora’s relationships with customers, business customised messages across multiple channels. This
partners, suppliers and franchisees are key to the results in unmatched brand awareness and high con- Employees
business. version rates. Pandora offers its employees a great and safe place
to work and focuses on creating rewarding careers
Financial resources Brand Access with high satisfaction and motivation.
Strong margins and high cash generation constitute Consumers connect with Pandora through more than
a robust financial position. 7,000 points of sale, 16 regional online stores, social Investors
media and other platforms - by far the largest distribu- In 2019 and 2020, Pandora paid an ordinary dividend
tion network in the industry. of DKK 1.8 billion and 825 million and generated a to-
tal shareholder return of 16% and 145% respectively.
11
STRATEGY
12 Phoenix Strategy
13 Core Markets
14 Design
15 Personalization
16 Brand
PHOENIX
STRATEGY
“We are very pleased to confirm that

Pandora is back on the growth track. We have
vast untapped opportunities in our existing
core business and these will drive long-term
As Pandora is entering its next chapter of growth sustainable and profitable growth. Our ob-
with significant value creation potential, the com- jective is to be the largest and most desirable
pany has introduced a new strategy, Phoenix, which brand in the affordable jewellery market.”
is built on Pandora’s unique brand promise and the - Alexander Lacik, CEO & President of Pandora
significant potential to grow in Pandora’s core busi-
ness and markets, while attracting new consumers
to the brand.
WE GIVE The strategy is built on leveraging some of the com- an EBIT margin that is expected to increase to 25-
A VOICE TO petitive advantages Pandora possesses, including its 27% in 2023. Pandora partly bets on sell-out growth,
PEOPLE’S manufacturing capability, global distribution net-

work, and existing brand awareness. As a part of the
growing reach and quality of network, with forward
integration to achieve this growth.
LOVES Phoenix strategy, Pandora has set out to achieve an
annual revenue growth of 6-8% from 2021-2023 and The Phoenix strategy is based on four growth pillars,
aimed at delivering sustainable and profitable
revenue growth over the foreseeable future by
Guidance Target horizon leveraging its Core Markets, Design, Personalisation
2021 2022-2023
and Brand.
Phoenix time horizon
“We have a lot of ammunition to drive top line
growth, but exactly which of the elements of the
2021 2022 2023 2024 2026 four growth pillars will drive growth remains to be
Today seen.” - Anders Boyer, CFO
CORE MARKETS
Grow our core markets with particular In China, Pandora is currently developing a plan cen-
focus on the US and China tred around consumer, brand, marketing, product,
Pandora sees significant opportunities to grow in retail and digital insights. The primary priority is
existing markets, rather than expanding into new brand, as the unaided brand awareness of Pandora
geographies. In particular, Pandora will focus on in China stood at only 19% in 2020, which is signif-
untapped opportunities in the US and China – icantly lower than in other key markets. Consum-
markets where Pandora’s brand penetration is still ers are therefore less familiar with Pandora’s key
low. The US and China represent more than 50% of attributes, such as collectability, personalisation and Be aware that China
the global jewellery market, and they will continue affordability. Pandora is planning to increase media and the US are high-
to increase in importance with a significant part of investments as well as introduce market-specific lighted here as prime
the absolute market growth driven by these two products built for its unique calendar to align with targets for growth,
markets. As such, Pandora plans to invest over-pro- Chinese consumer preferences. but they are just two
portionally in the US and China. of seven key markets
In the US, Pandora has recently developed a growth (China, US, France,
plan, leveraging the company’s strong commercial Germany, Italy, UK,
traction by further driving brand awareness via in- Australia). In the long
vestment in media as the unaided brand awareness term, Pandora also
3X 2X of Pandora stands at 26%, which is likewise lower
than in other key markets. The company also plans
recognises growth
avenues beyond the
LONG TERM OPPORTUNITY LONG TERM AMBITION
on expanding its consumer base, including winning Phoenix strategy, such
with Gen Z, and to further drive network expansion, as potential M&A op-
as current concept store penetrations in the US are portunities, geograph-
lower than in other core markets and unevenly bal- ical expansion and new
Revenue growth ambitions in China and the US anced, being strongest in the northeast and weakest product segments
are long-term and versus 2019 figures in the west. (platforms).
DESIGN
Create customer-centric innovation With the introduction of the “Launch & Leverage”
Pandora sees significant potential to both grow its concept, Pandora aims to create new platforms
biggest platform, Moments, and launch new com- without disrupting or cannibalising its existing
plementary platforms around their core proposi- platforms, such as ME and Brilliance. Management’s
tion of collectability and self-expression. Designs ambition is to launch new platforms in the future
will be crafted by fusing robust consumer insights on the existing infrastructure, which will be tested,
and strong creative expression. To ensure that new adjusted and scaled (or stopped). A platform needs
product platforms become successful and add in- to account for at least 5% of total revenue to be
cremental volume, Pandora will use these insights to meaningful and therefore have the potential to
design for different needs and target groups. drive growth going forward.
CREATE NEW
PLATFORMS NEXT
Other platforms
TO MOMENTS
Moments
30%
Other platforms
Moments
30% 70%
2021 FUTURE
70% TODAY AMBITION

PERSONALISATION
Personalised customer experience PILLAR 02

offers, particularly across their concept stores. This
Pandora is a global brand with a direct relationship
with millions of consumers. This connection pro- PERSONALISATION
is also typically where co-creation with the custom-
er takes place. With more than 75% of all trans-
vides rich insights that can help the company offer actions being direct, the aim is to provide a more
a better and more personalised service throughout relevant and customised omnichannel shopping
the whole customer journey. A significant part of journey to bridge offline and online channels.
this experience is the personalised service Pandora
OBJECTIVES:
USE DATA AND ANALYTICS TO OFFER A TRUE OMNI

BRAND
D
Fuel brand desirability and reach offers, particularly across their concept stores. This
Pandora is a global brand with a direct relationship is also typically where co-creation with the custom-
with millions of consumers. This connection pro- er takes place. With more than 75% of all trans-
vides rich insights that can help the company offer actions being direct, the aim is to provide a more
a better and more personalised service throughout relevant and customised omnichannel shopping
the whole customer journey. A significant part of journey to bridge offline and online channels.
this experience is the personalised service Pandora
ES:
DRIVE A HOLISTIC
NCREASE BRAND WIN WITH GEN Z & DRIVE A HOLISTIC
17
CAPABILITIES
OF PANDORA
18 The Pandora network
20 Building for a digital future
22 Product portfolio
THE PANDORA NETWORK

The 100+ markets in which Pandora operates are
grouped into 9 clusters, each headed by a General
Manager based in the largest market in the cluster.
Regional cluster offices are set up around the globe,
bridging the global team and local markets. The
cluster offices also develop and manage Pandora’s
franchise system. The franchisee enters into an
agreement with Pandora and, in operative matters,
mainly deals with the local Pandora Retail Manage-
UK
ment. By paying a franchise fee, the franchisees can
CONCEPT STORES IN 211
sell the Pandora product range, apply their trade-
TOP 7 MARKETS
mark, and utilise Pandora’s operating model. 2021 Q3
Concept stores
Even though Pandora has reduced its number of Germany China
franchised stores, they are still a big part of its 135 219
business and so it is always looking into new, great
opportunities for network expansion.
Shopping in a physical Pandora store has become

much more than a standard shopping experience: it
is now meant to provide a personalised immersive
experience for each customer. Pandora currently has
around 2,600 concept stores, of which 800 are fran-
chisee-owned and 500 are managed by a third-par- Australia
ty distributor. Pandora estimates significant white France 123
122
space for more stores in the markets where there is
still tremendous potential for them. The benefits of
franchising are that it is EBIT margin accretive, usual-
ly with a short payback period of about one year. Existing
United States Italy crafting
Pandora expects a ~1-2% p.a. network expansion, 386 146 facilities
which includes 100-150 net concept store openings
from 2022-2023. The focus would mainly be in the US
and China.
Crafting at scale small number of suppliers. Most of their product Brand

Approximately half of the 26,000 employees suppliers are based in and around Thailand. Pandora is the most recognised jewellery brand in
are craftspeople trained in-house to work at the Pandora supports and aligns its approach with the world. According to in-house studies, Pandora
crafting facilities in Thailand. This makes Pandora a the OECD Due Diligence Guidance for Responsible craft more jewellery than any other brand in the
unique production company. Since its foundation, Supply Chains of Minerals from Conflict-Affected industry while also being the most recognisable
Pandora has produced jewellery at wholly-owned and High-Risk Areas. All the gold and silver grains jewellery brand in the world. However, there are
production facilities located in Bangkok and Chiang Pandora buys are certified according to the London considerable variances in awareness from market
Mai. From a skill-set and cultural perspective, Thai- Bullion Market Association (LBMA) “Good Delivery to market.
land has a strong history in fine jewellery crafting. List” or the Responsible Jewellery Council (RJC)
Pandora has leveraged this early decision and built Chain-of-Custody Standard.
TOP CATEGORY DRIVERS OF DESIRE
a unique capability of crafting at large scale. This
Pandora over index vs. category average
is considered key to Pandora’s promise to deliver
quality jewellery at an affordable price. Each Pan- ”Has a special meaning to me” (119)
dora piece passes through an average of 25 pairs of
”Helps me express my personality” (121)
hands during the crafting process. Detailing of the
”Makes me feel I belong” (116)
handcrafted pieces often includes the setting of
more than a hundred stones one by one. Neverthe- ”Reminds me of special moments or people I care for” (131)
less, Pandora produces over 100 million pieces of ”Makes me feel unique, special” (105)
jewellery every year. Source: Global Brand Tracker 2020, incl. AU, CA, CN, DE, ES, FR, IT, RU, UK and US (n= 4,025)
To meet the expected demand and increase FEMALE FUNNEL

Pandora’s risk resilience, Pandora plans to expand Competitors, global overview
its manufacturing capacity by around 60% or 80 PANDORA #2 #3 #4 #5
million pieces jewellery annually. A new facility with UNAIDED

AWARENESS
capacity for around 60 million pieces will be built in 33 13 19 10 2
Vietnam, while additional capacity for around 20 AIDED
AWARENESS
million pieces will be added at existing sites in Thai- 83 74 73 68 18
land. The total investment is around DKK 1 billion. CONSIDERATION

SET*
Pandora predominantly uses gold, silver, palladium, 21 15 11 8 4
copper and man-made stones, such as cubic zirco- PURCHASE**

13 7 4 2 1
nia, in its jewellery. It also uses mined gemstones,
leather, polyester and glass, although in significant- OWNERSHIP 31 25 14 6 4
ly smaller volumes. Pandora works with a relatively

*Considered: Female self-purchaser or gifter who either considered or purchased the brand in the P12M
**P12M: Female self-purchasers or gifter who purchased the brand in the P12M
Source: Global Brand Tracker (Q2 2021 April – June 2021), incl AU, CA, DE, ES, FR, IT, UK and US. Base size: All women (n= 7,753)
BUILDING FOR
A DIGITAL FUTURE
Pandora’s focus is to use technology to create Pandora’s digital capabilities are grouped into four
deeper, more connected, relationships with its cus- main areas:
tomers. Internalising digital operations instead of Online platforms
outsourcing allows for more focused and controlled Digital Development & Retail Tech - Developing and Pandora’s online presence is notable and comparable
data analytics and building of digital platforms. operating Pandora’s digital and tech solutions to with industry peers. With its large social media fol-
From a strategic perspective, the reason for adding enable the best shopper experience, both online lowing and significant online community, Pandora can
and developing internal capabilities is simple: if and in stores. leverage this to further strengthen its brand aware-
Pandora can provide additional value to customers ness and communicate new campaigns. A key trait
by enhancing their customer experience, this can be Marketing Technology - Responsible for capturing of Pandora’s campaigning is to target ‘hinters’ and
leveraged to avoid competing solely on price when consumer data effectively, create data-based in- ‘gifters’. Since a lot of Pandora jewellery is gifted, Pan-
capturing new customers. sights and promote Pandora’s brand and products. dora targets ‘hinters’ before an upcoming holiday, to
encourage the eventual recipient of the gifted jew-
The disruptions caused by COVID-19 in Pandora’s Advanced Analytics - Driving Pandora’s data-driven ellery to give hints to their significant other or family
retail operations as well as social distancing forced growth agenda and responsible for generating in- member. The ‘gifter’ is then targeted in the period
Pandora’s brick-and-mortar stores to temporarily sights and unlocking business value from analytics. just before the holiday, as Pandora recognises a spike
close, thus further accelerating Pandora’s invest- in sales in this period. Pandora still recognises a large
ments in digital initiatives to become more resilient. eCommerce & Digital Operations - Responsible for untapped potential in its online presence. How can
ecommerce commercial and operational perfor- Pandora further leverage its existing online platforms
Across the world, Pandora’s teams are collaborat- mance, in order to ensure that Pandora delivers to engage with Gen Z and Millennial consumers?
ing to drive the digital journey by revamping the against its commercial plan and promise.
digital landscape and increase ecommerce perfor-
mance. With the establishment of the Digital Hub ”The Digital Hub is our community of makers and
in Copenhagen, a new division, consisting of almost doers, the centre of Pandora’s digital and techno-
100 software engineers, user experience designers logical creativity. We have purposefully designed 18 million 17.3 million 8.4 million
and web and data analysts, has been tasked with our workspaces, team structures and how we work Pandora club Facebook followers on
strengthening Pandora’s digital presence and om- together to spark innovation, collaboration and members followers instagram
nichannel capabilities and transform its customers’ transparency.” - David Walmsley, Chief Digital & worldwide
shopping experience using digital solutions and Technology Officer.
data insights at scale.
Digital initiatives
Pandora continuously develops exciting new ini-
tiatives to improve the customer experience and
journey with the brand. Some of the new initiatives
are partly fuelled by the COVID-19 pandemic, which
forced stores to temporarily close, while others
stem from a wish to be as convenient and consist-
Online 3D bracelet builder platform
ent for the customer as possible.
Available in select key markets, Pandora
FAST OMNICHANNEL ROLL-OUT
has brought much of the in-store expe-
Click & Collect / Buy online, return in store - Even Number of stores
rience online with the bracelet builder.
Click & Collect Endless Aisle
though it might seem quite simple, this can be a
1,000 The customer can see a 3D render of their
special challenge when dealing with large inven- 861
800 desired bracelet that is customisable to
tories across the product portfolio and physical 600 the same extent as in a physical store.
stores, which are partly own-and-operated stores 400 414
This allows for a simple and convenient
and partly franchises. Succeeding with Click & 200 174
0 0 4 design that easily converts into a sale with
Collect and Buy online, return in store gives the cus-
2018 2019 2020 a click of a button.
tomer even more options to engage with Pandora in
a fluent experience, potentially driving up recurring
visits. As of 2021, Pandora has rolled out its Click &
Collect in the US, the UK, France, Italy, Germany and
Australia.
Endless Aisle (Go in store, buy online) - A great cus- Online virtual try-on Video chat with sales
tomer experience is often achieved by proper guid- Similar to the bracelet builder, the virtual representatives
ance. In all of Pandora’s stores, staff are educated try-on is a feature that brings a physical As regulations due to the pandemic have
in their product catalogue and in providing sound element of the customer journey online. challenged how physical stores are op-
customer service. With Endless Aisle, Pandora can The virtual try-on works by taking a photo erated, Pandora has found a way to work
provide a great in-person experience, while bene- of your wrist and uploading it to the Pan- around this and is leveraging its educated
fiting from the convenience of ecommerce. This is dora’s website, where the desired piece staff by equipping them with tablets. This
accomplished by setting up tablets in-store, which of jewellery is transferred onto the photo feature allows the customer to engage
customers can easily navigate to find their desired to simulate trying on the jewellery. Pan- with a sales representative either online,
jewellery in the right size and colour and have it dora works continuously to build a more wherever the customer is located, or in-
shipped directly to their home. Endless Aisles has sophisticated version of this feature to al- store if need be.
been rolled out to cover major European markets, low for a more immersive VR experience.
the US and Australia.
PRODUCT
PORTFOLIO
Pandora’s universe of jewellery is customer-cen-
tred, offering vast opportunities for personal ex-
pression and creative themes, and aims to deliver
superior value for its customers. Pandora is pres-
ent across five product categories: Charms, Brace-
lets, Rings, Earrings and Necklaces & Pendants.
While Charms and Bracelets remain by far the
largest product category, generating about 70%
of total group sales, the other categories, particu-
larly rings, are continuing to increase their share
of total revenue. Rather than offering its products
by category, Pandora offers a full cross-category
proposition and has launched several collections,
each with its distinct features.
Pandora Moments wide array of charms, chains, and locks based on an

Pandora Moments is part of Pandora’s core col- individual’s interests and hobbies, such as family &
lection and has been a defining factor for cement- friends, travel, or animals & pets.
ing Pandora as a global industry leader. Pandora
Moments was launched in the year 2000 and Since launching Moments, Pandora has expand-
continues to be a major part of current operations, ed the platform from selling just customisable
accounting for about 70% of revenue today. The bracelets to jewellery worn on occasions beyond
price ranges from DKK 180 to DKK 2,200 per item the wrist. Expanding jewellery charms to combine
with the majority of selections priced at around with both necklaces, earrings, and pendants as well
DKK 400 to DKK 530. as to use in accessories, such as in keychains and for
bag decorations, is currently in Pandora’s pipeline.
Pandora Moments is a platform for self-expression, While Pandora has just launched this first wave
collectability, and affordability, “Your Style, Your of innovations, could there be other possibilities
Illustration: Single bracelet to Bracelet with charms Story”. Moments makes it possible for customers to further leverage charms as a cross pillar across
to create and assemble their own jewellery with a other categories?
Collaborations
A big part of Pandora Moments is Col-
laborations. Pandora has partnered up
with well-known brands, such as Dis- Pandora Timeless Pandora Signature
ney, Star Wars, and Harry Potter. These Utilising the same raw materials as Moments, Sharing aspects of Moments and Timeless,
collaborations materialise as charms Timeless is made mainly from sterling silver, Signature offers the best of both worlds by
with characters and icons from well- sometimes coated with yellow or rose gold. Time- encouraging customisation and ‘stacking’,
known universes. Pandora plans to less is different in the sense that - as the name while also offering an elegant and clean de-
expand these collaborations from suggests - it comprises timeless designs, offering sign. Pieces from this collection are meant to
not only huge franchises, but also cult a more elegant and classier look, but still within an be combined and mixed, giving the customer
collaborations within art, fashion, and affordable price range. The Timeless collection is the opportunity to develop their own ‘signa-
music. By continuously adjusting and an especially popular Mother’s Day gift. ture’ style.
expanding its collections to meet its
targeted customer needs, collabora- “Define your signature style with effortless
tions will play an increasingly bigger and sophisticated statement jewellery – the
part in their collections. “A timeless, elegant and versatile collection designs you deserve”
with sparkling stones as the centrepiece, for
those you cherish and those that cherish you”
“Pandora ME is made to inspire and invite

the next generation of consumers to express
the things they love the most in a playful and
confident way. We want to ignite their curios-
ity; tap into things they love and give them a
voice.” – Stephen Fairchild, SVP Chief Product
Officer
Pandora ME’s target audience’s biggest passions,

which have been determined as music, film, and
fashion, are leveraged in Pandora’s campaigning
of ME by using icons within these domains to
establish a connection with Gen Z. ME has been
marketed through social media campaigns and
collaborations with both global and local celebri- “Pandora ME has been reinvented to
ties and influencers. The collection was first faced reflect the wearer’s identity and bring
by actor and activist, Millie Bobby Brown, and our brand DNA and heritage into the
Pandora ME has since then been marketed with Addison Rae, future. We know that highly creative and
Pandora ME is a jewellery collection targeting Charlie XCX and others, who are associated with powerful Gen Zs express who they are
Generation Z. ME is a new platform that comple- Gen Z. The prices range from between DKK 130 to through music and fashion, so we have
ments Moments by building on similar principles DKK 1,760. combined these loves to inspire our
of customisation and collectability, but instead fans to share their voice as individuals
allows for bolder and contemporary designs. but also stand together as an empow-
ering community... around the world.” –
Pandora ME is a platform that is centred around Carla Liuni, Chief Marketing Officer
self-expression and personalisation, while still be-
“Be unapologetic, be bold, be
ing affordable and accessible. The collection con- free. Express your creativity
sists of 55 designs, including micro dangle charms, and curate your look with
a link bracelet, single stud earrings and a safety
pin brooch. The jewellery is made from recycled
jewellery that says something
sterling silver and responsibly sourced stones. about every side of you.”
“Diamonds are not just

forever, but for everyone”
- Stephen Fairchild,
SVP Chief Product Officer
Pandora Brilliance
With the launch of the Pandora Brilliance platform,
the company wants to democratise diamonds and
is the first Pandora product to be carbon neutral.
Bringing together timeless and elegant designs with Every diamond in the collection is a sustainably collection have been produced with more than
Pandora’s core values of affordable and person- lab-created diamond. This means that they have 60% renewable energy on average. When Pandora
alised jewellery, the Brilliance collection features achieved CarbonNeutral® product certification launches the collection globally, the diamonds are
sustainably lab-created diamonds. These stones are in accordance with the CarbonNeutral Protocol. expected to be made using 100% renewable energy.
physically, chemically and optically identical to their Pandora works in collaboration with Natural Capital
mined counterparts, but they are created above Partners to create sustainably produced diamonds, Brilliance is predominately aimed at millennial wom-
ground. They are a remarkable example of how where all greenhouse gas emissions associated with en and, while the lab-made diamonds are on aver-
innovation can replicate nature’s process and do so the creation of the diamonds (Scopes 1, 2, and 3) age half the price of mined diamonds (for the same
in a sustainable way. This also results in diamonds have been calculated and subsequently offset by carat), the price point of this collection is higher
that are offered at a lower price point than mined supporting a carbon finance project. To date, the than the other Pandora collections. The initial prices
diamonds, making them more accessible. lab-created diamonds in the Pandora Brilliance will range from DKK 2,100 to DKK 11,000.
26
UNDERSTANDING
PANDORA’S
CUSTOMER BASE
27 Enduring Concept Platforms (ECP)
30 Sustainability initiatives
31 Snapshot of Pandora’s financials
32 Distribution and communication
ENDURING CONCEPT
PLATFORMS (ECP)
For Pandora, it is all about offering the consumers
the desired products at the right place, time, and
price. Fundamentally, Pandora has distinguished Be aware that this is
between three types of purchases: Self-purchase, Pandora’s own seg-
males gifting females and females gifting females. mentation and is based
In addition to the three purchasing occasions, Pan- on the consumer needs 7%, 84 bn DKK
5%, 60 bn DKK
11%, 133 Bn DKK
dora differentiates jewellery industry consumers by identified by Pandora
their preferred brands within fashion and lifestyle
and their way of self-expression.
One of the more effective changes brought about

16%, 193 bn DKK
by the Programme Now restructuring plan of
5%, 60 bn DKK
reconnecting with Pandora’s customer base was
the “launch and leverage” concept in Q320, where
Pandora set out to invest in successful product
collections and build long-term momentum behind
the products (i.e., establishing long-term, recognis-
11%, 126 bn DKK
able platforms), rather than launching too many
products without testing the concept with consum-
ers and thus diluting the brand image. 4%, 48 bn DKK
14%, 162 bn DKK
Pandora has identified that its customer base

within the jewellery industry can be segmented
into 10 enduring concept platforms (ECPs), each
12%, 144 bn DKK
corresponding to a specific consumer need. Of the
ten platforms, Pandora has identified five ECPs that
14%, 162 bn DKK
their specific collections will be targeting to further
drive incremental growth within the unique consum-
er space:
My stories Creative expressions

“Jewellery is like a biography. A story that tells the “Life is too short to wear boring jewellery.”
many chapters of our lives.”
The eternal treasures This segment is specifically skewed towards Gen
“Jewellery is eternal, it never goes out of fashion, and Within this segment, women are majority Millennials Zs, who want to stand out and are looking for the
it will always be there.” who want to express their passion, interests, history next unique product, while also looking for a sense
and beliefs through personalisation. They want to of belonging in a community, such as sustainability
The characteristics of women in this segment are create meaningful memories and experiences to enthusiasts or other interests.
more traditional, appropriate, elegant and being be personally appreciated. The Moments collec-
subtle about their outfits. They live up to the ideals tion specifically targets this segment of consumers. Pandora’s ongoing collaboration with both iconic
and cultural expectations ingrained from a young Within this segment, the Pandora recurring consumer brands, including Disney and Star Wars, as well as the
age, rather than standing out and expressing their wears an average of 8.1 charms and the non-relaunch of the Pandora ME collection with influencers
uniqueness. The Timeless collection specifically tar- curring consumer owns 5.6 charms. This data was specifically target this consumer base.
gets this segment of consumers. collected from Pandora’s brand tracker in FY2019.
Pandora’s view on age distribution and growth tra-
Pandora’s view on age distribution and growth tra- Pandora’s view on age distribution and growth trajectory within Creative expressions:
jectory within the eternal treasures: jectory within My stories:
LOVED USED LOVED

AGE
AGE DISTRIBUTION
DISTRIBUTION BRANDS AGE
AGE DISTRIBUTION
DISTRIBUTION BRANDS AGE
AGE DISTRIBUTION
DISTRIBUTION BRANDS
37 41 44
33 31 29
24 19
11 17
7 9
ASPIRATION
AL BRANDS
Gen Z Millennial Gen X Baby Gen Z Millennial Gen X Baby Gen Z Millennial Gen X Baby
Boomer Boomer Boomer
Relative Growth Trajectory Relative Growth Trajectory Relative Growth Trajectory
Age distribution legend

The age group most representative for the given ECP (this generation is relatively more closely related to the given ECP)
The age group least representative for the given ECP (this generation is relatively farther attached to the given ECP)
Cult collabs Iconic hallmarks

“Coming together is a beginning. Staying together is “The brands I wear say everything about me.”
progress. Working together is success.”
This segment is defined as women who have reached
This is currently an area that Pandora has identified certain levels of specific goals in their journey and
to be an avenue for product expansion in driving want to celebrate and be recognised by these
future growth. This segment specifically targets achievements. It is more common to see self-pur-
women who are chasing exclusivity, limited edition chasing consumers in this segment than gifters. They
collections from well-known brands and admiration wear Pandora products, which are much easier to
for wearing rare, coveted pieces that not everyone identify, with pride.
has. How can Pandora enter this segment leveraging
current or new collections, collaborations and distri- Collections, including Pandora Signature and Pando-
bution channels? ra Brilliance, specifically target this segment, as the
price range is at the higher end with 14k gold.
Pandora’s view on age distribution and growth tra-
jectory within Cult Collabs: Pandora’s view on age distribution and growth tra-
jectory within Iconic hallmarks: Pandora consumers are across generations
Since the jewellery
business by nature is a 31%
USED USED
AGE
AGE DISTRIBUTION
DISTRIBUTION BRANDS AGE DISTRIBUTION BRANDS gifting business, ac-
25% 25%
curately tracking con-
sumers by age group is 19%
49 50 very complex. Pandora
31 33
9 10 is currently planning
11 ASPIRATION
AL BRANDS
7 ASPIRATION
AL BRANDS
to scale its efforts to
Gen Z Millennial Gen X Baby Gen Z Millennial Gen X Baby capture meaningful
Boomer Boomer
costumer and transac-
tional data through its
different digital chan- 18-24 25-34 35-44 45-65
Relative Growth Trajectory Relative Growth Trajectory nels and touchpoints.

WITH OUTSET IN THESE 5 ECPS, WE NOW HAVE A TRUE CONSUMER CENTRIC

PORTFOLIO ARCHITECTURE WITH CLEAR VISION FOR EACH COLLECTION
GIVE A VOICE
TO PEOPLE’S LOVES
COLLECTION
PANDORA
COLLABS COLLABS PANDORA PANDORA PANDORA
BRILLIANCE
PANDORA MOMENTS EXISTING NEW TIMELESS ME SIGNATURE
NEW
PRODUCT
IMAGE DESCRIPTOR
CONSUMER ECP
Mark an Occasion
NEED
Feel In the Know Express myself Be Recognised Feel Accomplished

Tell My Story, My Way Jewellery is
Jewellery is Life is too short to The brands I wear say The brands I wear
Jewellery is like a biography. A story that tells the many chapters of our life. Eternal, never out
latest trends wear boring jewellery its all about me say its all about me
of fashion
28
SUSTAINABILITY
INITIATIVES Raw material acquisition Diamond synthesis Cutting and polishing
Pandora’s sustainability agenda can be described as has in 2021 committed to science-based targets of TRANSPORT TRANSPORT
CH SYNTHETIC
highly ambitious. It aims to be a frontrunner of what reducing carbon emissions across the whole value TRANSPORT
DIAMOND SEEDS
the jewellery industry can and should strive to be by chain. NATURAL GAS
EXTRACTION
HIGH PURITY METHANE
PRODUCTION
transforming the way consumers purchase jewellery

TRANSPORT
by offering sustainable options. Pandora strives to Circular innovation H

TRANSPORT
embed sustainability considerations throughout the By 2025, Pandora has committed to using 100%
TRANSPORT
DIAMOND SYNTHESIS
PROCESS
whole value chain of the business, ensuring sustain- recycled silver and gold in its jewellery collections.
HARD COAL HYDROGEN GAS
MINING PRODUCTION
able practices from sourcing to sale. Specifically, Crafting materials accounted for the largest
Pandora has highlighted three strategic priorities emissions in 2020 at 21%. Pandora strives to ensure
that would improve the company’s sustainability that the raw materials used both in the crafting
performance, while also increasing resilience and of its jewellery and the development of point-of- counterparts. In 2021, Pandora launched its first
attractiveness in the marketplace: low-carbon sales materials and other in-store fixtures have the collection within sustainably lab-created diamonds,
business, circular innovation and an inclusive & fair lowest impact. In 2020, silver represented 50% of Pandora Brilliance, in the UK. According to a study by
culture. the overall purchased product materials by weight. the environmental consultancy Trucost, the envi-
Around 60% of the gold and silver used in Pandora’s ronmental cost of man-made diamonds is less than
Low-carbon business products was recycled. A shift to recycled silver and 0.01% of that of a mined diamond, largely due to the
By 2025, Pandora will become carbon-neutral across gold will reduce CO2 emissions and other environ- vastly smaller quantity of energy required in pro-
its operations. In 2020, the company established mental impacts, since recycling metals requires duction. More specifically, lab-made diamonds use
sourcing of 100% renewable energy at its crafting fewer resources than mining new metals and reduces 5,000 times less CO2 and 3,000 times less water
facilities in Thailand via solar panels. dependence on hazardous mining. per carat than a mined diamond.
Pandora has also taken initiatives to use low-carbon

packaging and increase the efficiency of lighting sys-
tems across their retail stores. Finally, the company
Pandora uses predominantly man-made stones.
Stones created in a laboratory have significant-
ly lower environmental impact than their mined
In addition, Pandora has also recycled 100% of its
four primary waste streams in crafting and distribu-
tion: gypsum, glass, wax and rubber.
~60%
RECYCLED SILVER
Inclusive and fair culture AND GOLD USED IN
Inclusion and diversity are an essential part of the OUR PRODUCTS
Pandora brand and the company has laid out gender
diversity targets for the board of directors, executive
management and senior management of no less
than 40% representation of each gender.
SNAPSHOT OF
UK
PANDORA’S KEY MARKETS DKK 2960
Share of revenue, % and DKKm 16%
PANDORA’S FINANCIALS Germany

DKK 1014
5%
China
DKK 1261
7%
For Pandora, 2020 was a paradox from a finan- Total sell-out growth
cial standpoint. On the one hand, the pandemic % Australia
forced the company to temporarily close most of its 10 DKK 1120
physical stores, causing revenue to decline dramat- 6%
France
ically. On the other hand, the end of 2020 marked 0
DKK 1154
a milestone in the company’s turnaround, reigniting 6%
the desire for Pandora and particularly the digital -10
initiatives.
US Italy
-20
DKK 4505 DKK 2021
The impact of lockdowns and social restrictions in
24% 11%
physical stores has skewed the channel mix towards -30
online. This created a positive impact on reported

revenue, converting wholesale sell-in to sell-out in -40
2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4
the online channel.
Revenue by product category
The stated annual revenue does not consider the DKK million 2018 2019 2020
Revenue by Channel Number of Concept See the attached
launch of “Brilliance”, as it was first released in Q221 DKKm. stores Excel workbook for a Charms 12,126 11,395 9,646
and is still in pilot-testing phase in the UK. The col-
Pandora physical stores Pandora owned detailed overview of Bracelets 4,393 4,216 3,751
lection generated around DKK 18m in sales in Q2 (3% Pandora online stores Partner owned
financial figures Rings 3,168 3,113 2,774
contribution to UK sales). According to management, Wholesale and third-party distribution
Earrings 1,486 1,487 1,319
Pandora has gained instrumental insights from the 2,770
21,868 2,690 Necklaces & Pendants 1,633 1,658 1,519
UK test launch and is confident that Brilliance has
19,009
the potential to become a new platform. Pandora Total Revenue 22,806 21,868 19,009
7,687 1,308 1,373
will therefore initiate a further sequential global roll-
5,583
out at the start of 2022, with country details to be
shared closer to launch date. 2,782 Revenue by global business unit
5,483
DKK million 2019 2020
*Sell-out growth refers to growth in the number of units of a product that
1,382 1,397
end up sold to the end consumer Moments and Collabs 15,095 13,059
7,943 11,399
Style and Upstream Innovation 6,774 5,950
Total Revenue 21,868 19,009

2020 2019 2020 2019
DISTRIBUTION AND
COMMUNICATION
Touchpoints financial year with more than 345 million visitors. Will
Concept stores - A concept store is a full-blown this be sustainable going forward?
Pandora store which carries a complete assortment
of Pandora products, has a branded Pandora store Click & Collect / Buy Online Return in Store - Some of
front and is furnished only with Pandora fittings the features previously described bridge the online
and displays. Pandora’s concept stores are either and offline touchpoints with the customer. Rather
owned-and-operated or franchised. The company than engaging with the customer solely online or
currently operates 2,616 concept stores across all offline, these tools allow Pandora to engage with
markets, of which 1,403 stores are owned-and-op- customers across channels to encourage further
erated. exchanges and even upselling, rather than simply
refunding original purchases. This feature continues
Shop-in-shops - A shop-in-shop is a clearly defined to generate strong traction in the US market, where
space in an arcade or department store dedicated ~10-15% of online sales come from Click & Collect.
to Pandora. The shop-in-shop has Pandora fittings 3rd Party Distribution and Social commerce - Social
and displays and carries a wide assortment of Pan- platforms and marketplaces are rapidly evolving to
dora products. The shop-in-shop will typically look develop more functions that span across even more
very much like a concept store on the inside (except touchpoints along the customer journey, and this has
smaller), although generally without the Pandora intensified under COVID-19. However, Pandora pre- “Eight out of ten
branded store front. fers to invest in its own physical store footprint and leveraged or innovated to engage with Gen Z and women globally are
its own online platform rather than joining larger 3rd Millennial consumers? aware of our brand, so
eCommerce - Pandora has experienced a substan- party ecommerce marketplaces, such as Amazon or I don’t need to make
tial increase in its online sales channels, particularly FarFetch. Pandora Club and Email marketing – Utilising you aware of me. What
during COVID-19, leveraging its omnichannel capa- Pandora Club data, email marketing will continue I need to do is to show
bilities through the pandora.net website. Pandora’s However, unlike in Western markets, Chinese con- to be an important driver of sales. Pandora Club you what I’ve got, and
online stores are shifting to the new visual identity sumers purchase luxury goods not only from brand- was established more than 10 years ago and now I can do this much
with significantly improved listing and product pages owned websites but also from 3rd party marketplac- has 18 million members. In Q420, the conversion better if I have a direct
that optimise navigation and check-out flow, while es, such as T-mall and JD.com, and social channel rate increased by 43% YoY and visits through email relationship with my
also incorporating story-telling content throughout. platforms, including WeChat and Douyin. In 2020, also increased 61% YoY. How can Pandora continue customer.” – Alexander
Its online stores have especially grown during the WeChat boasted about 1.2 billion monthly active to leverage its digital platforms and strengthen the Lacik, CEO & President
COVID-19 pandemic, growing 103% YoY in the 2020 users. In what ways can these channels be further relationship with its customers? of Pandora
34
THE JEWELLERY
INDUSTRY
35 The future of the affordable jewellery industry
36 Branded vs. Unbranded jewellery
36 Emulating fast fashion
37 Moving sales and communication online
38 The competitive landscape
THE FUTURE Affordable jewellery in key markets

DKK. Bn.
+7% 878
16
25
925
OF THE AFFORDABLE
14 18
24 20
827 17
17
13 19
23 16
772 16
12 18
JEWELLERY INDUSTRY
22 16 304
15
705 17 290
11 15
20 273
13
14
13 254
228
526
497
The jewellery market has experienced strong growth consumer spending across the globe is expected to 467
437
and offered high margins over the last decade. With vary by geography and consumer segment. 406
the middle class expanding globally, the market for

affordable luxury is expected to be well-positioned In the US, recovery will be much more rapid for young
2021 2022E 2023E 2024E 2025E
for growth in the future. Fitting into a larger industry to middle-aged high-income individuals whose jobs
China USA France Germany Italy United Kingdom Australia
of fine jewellery the affordable jewellery industry is were less impacted by the pandemic, giving life
a significant part of the DKK 2,125 bn fine jewellery in- to the journey of growth. Meanwhile, the Chinese
dustry. As uncertainty caused by the COVID-19 pan- consumer will grow in importance for global brands Doing business in China presents great opportuni-
demic rippled across the globe and short-circuited as the centre of gravity for fine jewellery increasingly ties, as both the size and growth of the affordable
demand, the fine jewellery industry suffered revenue tilts towards Asia. Overall, the fine jewellery market True Luxury, Aspi- luxury market are attractive to global businesses.
declines of around 18%. However, the recovery in is looking prosperous with a lot of opportunities. rational Luxury and However, unclear laws, inconsistent regulatory in-
Affordable Luxury terpretation and compliance with these regulations
refers to a consumer are some of the major challenges foreign companies
The fine jewellery market profile of an individual face. Being in a market with so many uncertainties,
DKK. Bn. +7% 2,747
2,612
with annual spending foreign companies are forced to increase their
-18% 2,469 on luxury goods (incl. organisational agility to be able to respond to rapid
2,311 2,311
2,127 2,125 936 963 fine jewellery) of above and unpredictable changes in the regulatory and
704 1,890
904 DKK 37,000, above DKK competitive environments.
863
616
810 208 15,000 and below DKK
192
163 735 175 15,000 respectively. As part of the broader fashion industry, jewellery
156 158
140 shares some common dynamics with luxury appar-
120
el and footwear. Among the most notable current
1,356
1,444
1,576 trends from the fashion industry becoming evident
1,390 1,484
1,174 1,289 in the jewellery industry as well, and at a much faster
1,035
pace are: the growth in branded products, fast fash-
ion, a reconfigured channel landscape, and consoli-
2014 2019 2020 2021 2022E 2023E 2024E 2025E dation and internationalisation.
True Luxury Aspirational Luxury Affordable Luxury
Source: Euromonitor (2020): The Jewellery Industry

Source: Bain (2018): Doing Business in China: The outlook for global companies
BRANDED VS. EMULATING

UNBRANDED FAST
JEWELLERY FASHION
Today, the jewellery industry is still primarily locally direct-to-consumer companies will heat up as To understand the jewellery industry, it can be worth
driven. The ten largest jewellery groups capture a players compete to win customers who are turning looking at trends from the apparel industry, specif-
mere 15 percent of the global jewellery market. In towards brands that reflect their distinct point of ically how the industry is experiencing shorter time
the jewellery market, a brighter future lies ahead view. to market and therefore more responsiveness to
for branded jewellery, which is estimated to grow the latest fashion trends. Fast-fashion players have
by 8-12% CAGR by revenue from 2021 to 2025, with “You see people walking with a large horse on dramatically shortened time to market: new prod-
around 20% of all jewellery sold being branded their Ralph Lauren polo shirts. They want to show ucts can go from concept to shelf in a month. Stores
jewellery. As price points in branded jewellery are the world that they want to be associated with receive a continuous stream of fresh merchandise—
on average around six times higher than unbrand- that brand. Likewise, we see a similar trend within Share of branded vs. as many as 12 themes each year. In the fast-fashion
ed products, competition between established branded jewellery.” - Raul Duque Ruiz, SVP Style unbranded jewellery world, flexible companies with adaptive business
luxury jewellery brands, fashion brands and new Collections & Upstream Innovation in affordable jewellery systems reap disproportionate rewards. Innovative
category jewellery players will emulate fast-fashion apparel
DKK. Bn. companies: they will react to trends quickly and re-
1,576 duce their product-development cycle times. Doing so
There are three types of consumers driving this will require closer collaboration with partners along
trend of branded jewellery: 25% the entire value chain, from suppliers to designers
1,174
to logistics providers. Being able to respond quickly
The ‘new money’ consumer: Wears branded 20% to the latest trends and brands can gain a following
jewellery to show off newly acquired wealth in different pockets of the jewellery industry, further
saturating markets.
Emerging market consumer: Seeks to show a 75%
sense of upgraded lifestyle 80% As described, the evolution of the apparel industry
provides an interesting template for how the jewellery
Young consumer: Uses established brands as a industry might develop. The degree to which the two
means of self-expression and self-realisation industries will mirror each other remains to be seen,
2021 2025E
but it seems likely that trends from the apparel in-
Illustration of unbranded and branded jewellery Branded Non-branded dustry will continue to drip into the jewellery industry.
Source: BCG x Alta Gamma (2021): True Luxury Global Consumer Insight 8th edition
MOVING SALES
AND COMMUNICATION
ONLINE
Jewellery sales are traditionally associated with the relationship between offline and online channels Personal luxury growth trends by channel
a one-on-one personalised service and inspiring to develop experiences that capture more of the
in-store experiences that do not easily translate online jewellery market. With online sales expected +11%
online. With online jewellery purchases accelerated to grow from 16% to around 21% of the overall market
7%
because of the pandemic, brands and retailers are between 2021 and 2025, DKK 150 bn is at stake, as 10% -23%
now more inclined than ever to better understand the bulk of these sales will come from affordable 17% 11%
branded jewellery. This is credited to the fact that 5%
6% 14%
producers can target a somewhat standardised
Sales of affordable jewellery 15%
product segment in which consumers know exactly 39%
by channel
DKK. Bn. what they are purchasing.
1,576
Furthermore, two-thirds of luxury shoppers will 60%

50%
+14% 21% engage in online research prior to an in-store pur-
1,174 chase. In addition, they will frequently turn to social
+6% media for information and advice. The importance Luxury market Omnichannel Multi-brand Brand Pure Offline Luxury market
2019 platforms communication 2023E
16%
of having a digital presence that ties into the overall
customer journey is gaining in importance. Omnichannel Pure Offline Multi-brand platforms Brand communication
The outlook for the jewellery market indicates an

79%
increase in demand for a more personalised and
84% consistent experience. Some of the challenges for and entire purchase history, is known upon entry. The chart refers to the
producers lie within simply aligning the customer To target new customer segments, catering for the personal luxury market
experience between channels and touchpoint, such customer experience in a way that makes the brand (incl. jewellery, excl.
as same packaging and visuals, and the same prod- as accessible to the consumer as possible is crucial. experiential luxury),
uct catalogue online and offline. New opportunities With new technology and a trend in growing online including true luxury,
2021 CAGR 2025E
also arise for introducing concepts such as omni sales and use of digital channels, there are many affordable luxury and
Online In-store stores, where the customer, with all characteristics possibilities waiting to be explored. premium segments.
THE COMPETITIVE
LANDSCAPE
The global jewellery market is a highly fragmented Key distinctive competitive advantages for Pandora to entry, further contributing to the saturation of the Market Share - Global
industry with no clear market leader. However, Pan- are its ability to upsell to consumers with charms as jewellery market.
Chow Tai Fook 2.70%
dora is among the largest market players globally. well as the ability to scale production along with its Lao Feng Xiang 2.50%
On a global scale, Pandora competes with other vertically integrated model by controlling the majori- In the past, most of the growth in branded jewellery Cartier 1.90%
Tiffany & Co 1.60%
global brands, such as Cartier, Chow Tai Fook, Tiffany ty of its supply chain. came from the expansion of established jewel- Pandora 1.40%
& Co. and Swarovski. However, many of the biggest lery brands. By contrast, future growth in branded Lao Miao 1.10%
Tanishq 0.80%
brands have an average price significantly higher Local and niche affordable jewellery players contin- jewellery is likely to come from non-jewellery players Bvlgari 0.70%
than Pandora, thereby appealing to vastly different ue to rise and have the capabilities to compete and in adjacent categories, such as high-end apparel or Van Cleef & Arpels 0.60%
Malabar Gold 0.60%
customer segments. To grow in different markets, it take market share from Pandora at a regional level, leather goods – brands such as Dior, Hermès and Rest of world 86.70%
is crucial to have an eye on local players as well as but they generally do not have the brand awareness Louis Vuitton - introducing jewellery collections or
fashion brands who offer jewellery at a similar price or ability to scale to a global presence in comparison expanding their assortment. Tapping into the trend
point to Pandora. to Pandora. Niche players generally have low barriers of branded jewellery will therefore not necessarily be
a safe haven, as fashion brands are likely to expand
The competitive landscape of the jewellery market within this domain.
AFFORDABLE While the industry is saturated with a lot of compet-

NICHE FINE itors, with not one competitor having over 3% of the
LUXURY FASHION BRANDS
INDEPENDENT JEWELLERY
JEWELLERY global market share, there is a big trend to consol-
Feeling of luxury idate by the biggest players in the industry. One of
Brand associations to
Competency at attractive Niche jewellery trends Luxury associations the main reasons for this consolidation is to achieve
luxury lifestyle
pricepoint
the necessary scale to gain access to new markets,
Targeted Price-concious and as most markets are saturated with local brands. “Crafting and selling at
Price-concious Niche True Luxury
consumer Aspirational Luxury
These trends are seen mostly within big fashion scale opens levers for
Price range
250 – 5,000 1,000 – 10,000+ N/A 10,000+ groups, such as LVMH and jewellery groups, such an EBIT margin expan-
(DKK)
as Chow Tai Fook. Producing at a larger scale also sion. By enhancing our
proves beneficial in terms of growing margins. When operations and making
competing in the affordable luxury industry, keeping the right investments,
Brands production costs low to be able to offer the right we’ll be able to attain
price is crucial. a margin of between
25-27% by 2023.”
- Anders Boyer, CFO
Source: Euromonitor (2021) The Jewellery Industry

39
CONSUMERS
TRENDS
40 Consumer behavior and attitudes
41 Outlook for Millennials and Gen Z
42 Consumer attitudes in North America
43 Consumer attitudes in Asia Pacific
CONSUMER BEHAVIOUR
AND ATTITUDES
The business landscape is currently undergoing Globally, consumers are also becoming more chan- Great demand exists within personalization services
dramatic changes, some of which have been ac- nel agnostic, expecting consistency, and demanding
celerated by COVID-19. As a result of the continued a more personalised experience. Within personal-
outbreak of COVID-19, there have also been funda- isation, the four following factors have the largest
mental shifts in consumer behaviour and demand impact on improving the customer experience: Personalisation
72%
for affordable jewellery. personalised treatment in-store, personal shopper, Personalised treatment
in-store
targeted recommendations and being recognised 39%
Exclusive access to
As a result of COVID-19, digitisation in the jewel- as the same customer across channels. Personalised events and contents
lery industry has become increasingly important, in-store treatments are most popular with Baby 58%
especially within retail, innovation and marketing. Boomers.

Exclusive access to store / Targeted recommendations
Meanwhile, social commerce has managed to unite products and promos 26%
56%
these three aspects in one. In 2019, “29% of Millenni- An important emerging trend among consumers is
als globally stated that they usually buy something the importance of sustainability and greater trans-
Engagement on news, novelties
via a social media platform”. parency. Sustainability is increasingly outgrowing and products manufacturing
43%
the status of simply a buzzword within the fashion Recognised as same
customer across channels
Self-gifting is gaining ground in jewellery and is mak- industry. 51% of respondents globally agreed that 23%
Special product services
ing notable shifts in consumer behaviour. Jewellery is they only buy from companies and brands that they 16%
not solely considered for special occasions anymore. trust completely. Thus, as the consumers are more
Thus, there has been a trend of growing diversity in educated in sustainable practices and observant
Delivery services anywhere Personal shopper
styles and shopping behaviours, especially among of greenwashing, the relevance of transparency and 12% 12%
Gen Z and Millennials. 36% of Millennials globally social responsibility is steadily growing and can help
state that they regularly buy small treats because secure higher consumer trust.
Digital and omnichannel
they feel that they deserve them.
Physical and in-person
OUTLOOK FOR
MILLENNIALS
AND GEN Z
In terms of the two demographic cohorts that will
drive the affordable luxury market, Gen Z and Mil-
lennials are emerging as a critical growth lever for
the sector. Gen Z and Millennials will have significant
influence on the overall market through trendsetting
and digital engagements, such as Instagram, Snap-
chat and TikTok. By 2025, 60% of the total luxury
personal goods market is expected to be made up
of Millennial consumption. Millennials and Gen Z are
expected to increase their share of consumption by
Luxury personal goods market by generation
1.5x and 3x respectively by 2025.
+19%
Large price tags no longer represent the same
7.50%
barrier to selling jewellery online as they once did,
but customers still expect a high-end experience.
However, while Millennials have shifted much more
Baby Boomers 23% 32.50%
towards online shopping, Gen Z are embracing shop-
ping across all channels. Gen Z are more inclined to “If you look at Generation Z
shop in whatever channel is the most convenient, 60+% and Millennials, by 2025 they
of total market
whether that be offline, online, or somewhere in Gen X 38%
are expected to constitute
between.
47.50% over 60% of the luxury
Winning over these cohorts means adhering to a consumption in the world
growing shift towards more value-driven spending Millenials 35%
so we need to sharpen our
and delivering products that can relate to the atti-
tudes of Millennials and Gen Z Gen Z 4%
12.50%
pens.” – Alexander Lacik,
2019 2025E CEO & President of Pandora
CONSUMER ATTITUDES
IN NORTH AMERICA
Looking at consumer behaviour by generation, Trends within live-streaming purchasing
companies that can capture the Millennials and
No Yes No, would not consider 8% 6% 7% 4%
Gen Z stand to enjoy financial growth in years to
China 14%
come. In 2015, Millennials surpassed Baby Boomers 26%
27% 73% No, would consider 22% 6%
as the largest living generation in the US. Millenni- 30%
als already spend DKK 6 trillion and the expected 46% 27%
spending power is expected to rise to DKK 54 trillion US
30% 24%
by 2025 versus DKK 52 trillion for Gen X and DKK 7 45% 55%
Yes, immediately after 34% 20%
trillion for Baby Boomers.
Rest of World 27%

Millennials are generally willing to pay premium 53%
63% 37% 54% 43% 40%
prices for goods and services. They are highly Yes, during 36%
educated consumers who see the products and

43%
brands as extensions of themselves and are willing Europe
70% 30% Average China US Rest of Europe Average

to pay more to obtain quality. In addition, ~38% of
World
Millennials follow the latest trends, chasing more
innovative products.
shoppable features on social media apps. While Influences on buying a product or brand (% of respondents)
A clear distinction in attitudes towards brands livestream shopping among US luxury consumers is
Mail or newspaper 3% 3%
between Millennials and Gen Z is where Millennials still lesser known than among Chinese consumers, Experts, celebrities, or influencers 8%
4%
6%
8% 12%
10% 4%
have a “look at me wearing this brand item” atti- it is proving to be a high “conversion” tool in which, Traditional Media 10% 8% 10% 4%
14%
tude, while Gen Z are looking more for the item that of those aware of virtual livestreams, 53% of the 16%
Online Reviews, blogs or websites 17%
shows that they are different and unique. The Gen Z US consumers purchased with the brand during the 26%
32%
32%
generation looks beyond the tangible product and livestream and another 27% purchased immediate- 30%
Social media 28%
generally tries to understand what the company’s ly after.
13%
mission and purpose is. 39% 25%
6%
Similarly, almost 40% of adult Gen Zs (aged 18-23)

Friends or family 34% 32%
29%
Amid the COVID-19 pandemic, US consumers say that purchasing decisions are most influenced 23%
14%
are embracing livestream shopping and other by social media.
Gen Z, age 13-17 Gen Z, age 18-23 Millenial Gen X Baby Boomer
Source: BCG x Alta Gamma (2021): True Luxury Global Consumer Insight 8 edition
th
Source: McKinsey (2020): The young and the restless: Generation Z in America
CONSUMER ATTITUDES
IN ASIA PACIFIC I prefer brands that can I prefer brands that
customize their products for me, offer tailored services,
% who strongly agree or agree % who strongly agree or agree
Across Asia Pacific, almost a third of Gen Zs spend their budget. Furthermore, China’s Gen Z are the 51% 53%
six hours or longer a day on their phones, a consider- most spontaneous of all, with 47% saying they buy 45%
ably higher share than Millennials and Gen X, which products on the go. This behaviour is driven partly by
37%
could explain why some of the primary influences in robust confidence in future earnings as they believe
33%
brand decisions for Gen Z come from social media that they will earn much more in the future. The com- 31%
and online sites. bination of impulsiveness and optimism also means

that 36% of Gen Z overspend their budget. 20%
Specific to China, the Gen Z cohort makes up 15% of
13%
the population, equivalent to ~210 million people, In addition to their confidence in future earnings,
a demographic that accounts for spending 13% of Gen Z in Asia and particularly in China are more
the country’s total household expenditures. Distinct loyal to brands they know and can identify with, and
from Millennials and Gen X, they are characterised even more brand loyal than the older generations. China Australia Japan South Korea China Australia Japan South Korea
as more optimistic, impulsive and tend to outspend Gen Z Gen Z Gen Z Gen Z Gen Z Gen Z Gen Z Gen Z
Among consumers aged 18-54 in China, omnichan-

nel shopping is on the rise and Gen Z especially are How do you usually purchase apparel? % of who strongly agree or agree
% of respondents who strongly agree or agree gravitating towards 3rd party ecommerce platforms,
that they ‘buy products on the go’
such as T-mall and JD.com due to greater transpar- Browse in the store Browse in the store
Browse in the store Browse online but AND online but buy AND online but buy
ency and more quality assurance. Gen Z consumers but buy online buy in store in the store in the store
47%
in China embrace online ecommerce sites that allow
42% China
47% 23% 16% 29%
peer-to-peer transactions, such as Taobao and Gen Z
36%
second-hand marketplace Xianyu.
29% Australia
27% 25% 31% 18% 14%
Gen Z
Gen Z consumers in China are also more used to
21%
omnichannel shopping experiences compared to Gen
Z in other countries. Almost 40% of Gen Z consumers Japan
20% 24% 15% 10%
Gen Z
state they browse in-store and shop online while only
15-30% of Gen Z prefer this method in other countries.
This indicates online and offline channels play differ- South
Korea 19% 15% 10% 15%
China China China Australia Japan South Korea
Gen Z Millennial Gen X Gen Z Gen Z Gen Z
ent roles in China Gen Z’s omnichannel experience. Gen Z
Source: McKinsey (2020): What makes Asia-Pacific’s Generation Z different?

Source: McKinsey (2020): China’s Gen Z are coming of age: Here’s what marketers need to know
CLOSING STATEMENTS
Pandora is already at the forefront of delivering and complexity of Pandora’s organisational setup
quality affordable luxury jewellery globally, while and global footprint. Remember to clearly state any
also driving the sustainability agenda in the indus- assumptions made in your analysis to ensure that
try. However, with changing consumer demands and your solutions are feasible, viable and aligned with
a highly competitive industry, it is imperative that Pandora’s mission and vision.
Pandora adapts to changing consumer behaviours
and continues to innovate. “Great solutions can come from anywhere. We’re
convinced that you will come up with exciting and
Pandora is in a unique position to capitalise on these innovative ideas that we haven’t thought of. Do keep
dynamics, with a strong portfolio of collections and in mind that Pandora is a global company and that
a clear vision to benefit not only shareholders, but we have the capacity to execute at large scale, al-
society as a whole. With the guiding marks of the lowing us to think more ambitiously. We have moved
Phoenix strategy recently finalised, it is now time mountains in the past. We can do it again with your
to decide which investments and initiatives will be help.” - Alexander Lacik, CEO & President of Pandora
needed to secure the long-term success of the group.
As you embark upon this task, keep in mind the size
45
APPENDIX
46 From idea to finished product
47 Unaided brand awareness across core markets
48 Roll out of digital initiatives
FROM IDEA TO
FINISHED PRODUCT 13 Polish and tumbling - Every piece of jewellery is polished
in a special tumbler machine to smooth and bluff the sur-
face before ultrasonic cleaning removes any residue.
1 The design process - Comprising six steps that transform 6 Burnout ovens - The wax trees are then placed into metal
ideas into real, tangible prototypes, they begin by identify- cylinders that are filled with liquid gypsum and heated in 14 Surface textures - This step creates different surface
ing current trends, gathering customer feedback and eval- a burnout oven for several hours, baking the gypsum into a effects on metals, such as high shine and diamond pointing,
uating local market needs. Afterwards the design depart- hard plaster. The process leaves chambers in the plaster, which creates an intriguing texture that is both matt and
ment begins to create mood boards that shape each new shaped as the jewellery master. brilliant without using stones. Originating in the 17th century
collection. Sketches of individual designs are created and and reinvented for jewellery in the last century, the tech-
continually adjusted to ensure the final design is perfect. 7 Casting - The plaster moulds then go into a casting ma- nique involves using a diamond-pointed tool to prick the
chine into which silver or gold alloy is poured. The metal surface of the metal to create the effect.
2 Design and sample development - All new jewellery design alloy melts down into the forms, replicating the jewellery
ideas are shaped into prototypes throughout a lengthy master. 15 Oxidation and plating - In this step, special finishes are
design process with the design team and craftspeople. In added to selected high-quality metals to create different
the final stage of the design process, the final designs are 8 Cleaning - When the plaster casts have cooled down, the tones and contrasts. Finishes include oxidisation, electric
selected by Pandora representatives for launch in the new metal trees are removed from inside and cleaned to remove coating (also known as electrophoretic painting) and plating
collection. any residue. on Pandora’s unique metal blends - ruthenium, 14k gold and
14k rose gold.
3 Rubber mould cutting - a rubber mould is created by 9 Cutting and grinding - The jewellery forms are cut from the
pressing several layers of rubber around the jewellery mas- tree. Any surplus metal is refined and reused. The nub of the 16 Enamelling and gluing - Colours are mixed in-house and
ter and vulcanising the form. This chemical process converts metal left behind when cutting the piece from the tree is the glossy, hardwearing enamel is applied to the jewellery
natural rubber into a more durable material using sulphur. removed, preparing the metal for further refinement. by hand using a thin needle, or by hand-painting for shaded
The jewellery master is cut away, leaving behind a rubber enamel effects. Freshwater cultured pearls and lacquered
mould with an identical hollow impression. 11 In-line quality control - There are many quality control artificial pearls are also set by hand, carefully glued onto
checkpoints during the crafting process, the timing of which traditional peg settings.
4 Wax model - The rubber mould is injected with molten varies from one crafting facility to another. This tends to be
wax, which hardens into exact copies of the original jewel- where the first check takes place. 17 Final quality control - All pieces of jewellery go through a
lery master. Each rubber mould is very efficient; it can be rigorous quality control process, and it is here they are given
reused up to 2,000 times. 12 Assembling, soldering and stone setting - Pandora’s skilled the final sign-off that they meet Pandora’s strict standards
goldsmiths adorn and detail the jewellery designs using a vari- of quality.
5 Treeing - The wax model is cleaned and attached to a wax ety of crafting techniques. Different elements are assembled
tree with a burner, adding more wax models until the tree is and soldered as necessary to create the finished masterpiec- 18 Packing and shipping - The final step is packing the
full. es. Stones are set by hand, either directly in the metal or in the hand-finished Pandora jewellery and shipping it around the
wax model to secure and showcase them to maximum effect. world, ready for women to wear, style and cherish.
UNAIDED BRAND AWARENESS

ACROSS CORE MARKETS
CHINA 19%
US 26%
UK 65%
GERMANY 30%
ITALY 57%
FRANCE 35%
AUSTRALIA 56%
ROLL OUT OF DIGITAL

INITIATIVES
Core Markets
Endless Aisle
Buy Online, Return in Store
Click & Collect
Ship from Store
Virtual try-on
Bracelet Builder
Live across market O&O concept stores (planned) Pilot (planned)

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CBS CASE COMPETITION

PANDORA’S STRATEGIC OBJECTIVE

TO BE THE LARGEST AND

Among other benefits, the reorganisation has

THE BUSINESS MODEL

KEY RESOURCES LEVERAGING KEY RESOURCES TO CREATE VALUE VALUE CREATED

Brand Design Consumers

“We are very pleased to confirm that

PEOPLE’S manufacturing capability, global distribution net-

70% TODAY AMBITION

Personalised customer experience PILLAR 02

USE DATA AND ANALYTICS TO OFFER A TRUE OMNI

THE PANDORA NETWORK

Shopping in a physical Pandora store has become

Crafting at scale small number of suppliers. Most of their product Brand

To meet the expected demand and increase FEMALE FUNNEL

million pieces jewellery annually. A new facility with UNAIDED

land. The total investment is around DKK 1 billion. CONSIDERATION

copper and man-made stones, such as cubic zirco- PURCHASE**

ly smaller volumes. Pandora works with a relatively

Pandora Moments wide array of charms, chains, and locks based on an

“Pandora ME is made to inspire and invite

Pandora ME’s target audience’s biggest passions,

“Diamonds are not just

One of the more effective changes brought about

Pandora has identified that its customer base

My stories Creative expressions

LOVED USED LOVED

Relative Growth Trajectory Relative Growth Trajectory Relative Growth Trajectory

Age distribution legend

Cult collabs Iconic hallmarks

Relative Growth Trajectory Relative Growth Trajectory nels and touchpoints.

WITH OUTSET IN THESE 5 ECPS, WE NOW HAVE A TRUE CONSUMER CENTRIC

Feel In the Know Express myself Be Recognised Feel Accomplished

transforming the way consumers purchase jewellery

by offering sustainable options. Pandora strives to Circular innovation H

Pandora has also taken initiatives to use low-carbon

PANDORA’S FINANCIALS Germany

online. This created a positive impact on reported

Total Revenue 21,868 19,009

THE FUTURE Affordable jewellery in key markets

the middle class expanding globally, the market for

Source: Euromonitor (2020): The Jewellery Industry

BRANDED VS. EMULATING

Furthermore, two-thirds of luxury shoppers will 60%

The outlook for the jewellery market indicates an

AFFORDABLE While the industry is saturated with a lot of compet-

Source: Euromonitor (2021) The Jewellery Industry

especially within retail, innovation and marketing. Boomers.

trillion for Baby Boomers.

Rest of World 27%

educated consumers who see the products and

70% 30% Average China US Rest of Europe Average

Similarly, almost 40% of adult Gen Zs (aged 18-23)

and online sites. bination of impulsiveness and optimism also means

Among consumers aged 18-54 in China, omnichan-

Source: McKinsey (2020): What makes Asia-Pacific’s Generation Z different?

UNAIDED BRAND AWARENESS

ROLL OUT OF DIGITAL

Buy Online, Return in Store

Click & Collect

Ship from Store

Live across market O&O concept stores (planned) Pilot (planned)