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Danish jewellery chain Pandora drove growth in a flat jewellery market last year. The brand says it is gaining market share, courtesy of Pamela Anderson and lab diamonds.
Better than expected
Pandora may be responsible for all the organic growth in the jewellery market last year, CFO Anders Boyer suggested to Bloomberg. As the global market declined, the Danish jewellery chain managed to increase its sales by 8 % to 28.1 billion kroner (3.8 billion euros), more than the 5 to 6 % rise that jewellery retailer originally expected.
The fourth quarter was particularly successful for the chain, which positions itself as an “affordable luxury” concept. Targeted marketing and campaigns with celebrities (and influencers) helped the company gain market share: between October and December, organic sales rose 12 %.
Investing in image
A year ago, Pandora started investing in boosting its desirability by sponsoring fashion shows and focussing on content in fashion magazines. There was also a campaign for its lab diamond collection, fronted by Pamela Anderson.
The consequence of the investments, however, is that the operating profit margin remained stable at 25 %. Operating profit (EBIT) rose from 3.2 to 3.7 billion kroner (half a billion euros).
