Pandora recently had an IPO, and I have been skimming through their prospectus – which isnot 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 ofPANDORA-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.