Pandora’s Plans: Online, Watches, Sunglasses and More!

Pandora recently had an IPO, and I have been skimming through their prospectus – which is
not online as far as I’m aware  –
and there are some interesting morsels in it. Overall, it shows a very
successful company (which currently sells in 47 countries) with considerable
ambitions. 

Among the more interesting bits of news:

PANDORA plans an
“online sales platform”:
“In the medium term, we expect to build an online
sales platform to enhance further brand awareness and maximize customer reach
as well as foster the potential for additional revenue opportunities.”

PANDORA is an
industry giant:
“We are the world’s third largest jewelry brand, in terms
of estimated revenues at retail value in 2009.” The company says it’s ranked
behind Tiffany and Cartier, and ahead of Swarovski, David Yurman, Graff and
Bvlgari.

America still loves PANDORA:
U.S. revenue in the first half of 2010 was $1,024 million DKK ($190 million), a
sizable jump over the first half number from 2009: $583 million DKK (approx.
$108 million) The U.S. is the company’s largest market, accounting for 40% of
revenue. “Like for like” sales of PANDORA in the U.S. increased 32% from fiscal
year 2009 from fiscal year 2008. 

PANDORA wants to sell
branded sunglasses and watches:
“We are in the process of expanding our
product range to include non-jewelry products, including sunglasses and
watches.”  Watches are coming in
fall 2010, and sunglasses in 2011. 
The company tried to introduce sunglasses this year, but ultimately
“delayed the launch.”

It will focus more on
PANDORA-“branded” sales channels:
“We intend to increase the amount of
PANDORA-branded points of sale in select markets … in part, by establishing new
Concept Stores and Shop-in-Shops through franchise and other arrangements as
well as launching a limited number of directly owned stores.”

PANDORA’s business is
built on charms:
The charm business accounted for 86% of its revenue in the
first half of 2010. It claims 15% of the overall $9.6 billion charm market
worldwide. 

It has some
interesting statistics about the jewelry business, due to a market study it
commissioned from Bain and Co.:
“The affordable jewelry segment [defined as
under $1,500] accounted for 57.2% … of the fine jewelry market in 2009.” Only
19% of jewelry sold in 2009 was “branded” – compared to 60% for watches, Bain
found.

 

JCK News Director