Pandora_Annual_Report_2018

P A N D O R A A N N U A L R E P O R T 2 0 1 8 C O N T E N T S O U R B U S I N E S S 1 6 Conversational commerce Today’s consumers expect personalised prod- ucts and services. Around 40% of consum- ers are likely to become repeat buyers if they experience personalised shopping, however, many brands’ personalisation features fail to inspire consumers to make a purchase. As a re- sult, the concept of conversational commerce is on the rise. Chatbots are increasingly ad- opted by brands to guide and help customers more efficiently on their shopping journey, a feature Pandora has recently implemented as well. As 3 out of 4 consumers rely on social media to guide their purchases, conversational commerce is an opportunity for us to provide a highly personal customer experience. Read more on page 26. Key industry trends The evolving store The role of the brick-and-mortar store con- tinues to change as more consumer spending moves online. Retailers are emphasising the in- store experience to drive footfall and keep the store a relevant channel in the consumer jour- ney and, as the experience economy grows, retail spaces are becoming much more than places of transaction. Retailers are reimagin- ing their stores and experimenting with smaller formats, brand experiences and seamless shop- ping across platforms. At Pandora, we prioritise in-store customer experience and continuously work on ways to make the consumer journey seamless and convenient. Convenience Convenience is a critical factor that is increas- ingly influencing purchasing decisions. Con- sumers seek what they need, when and where they want it. The abundance of choice makes it easy for them to choose the most convenient option. Omnichannel has therefore become standard for many retail brands to always reach the consumer and provide a seamless shop- ping experience. At Pandora, we are currently rolling out online viewing of inventory on our eSTORE and implementing in-store tablets to better meet each consumer’s need for conve- nience. Sustainability on the rise Consumer expectations to environmental and social performance continued to grow in 2018. Young people see the private sector as a po- tential force for positive impact and use pur- chasing decisions as levers for social change. New technologies are driving down costs and enabling sustainable innovation. Lab-grown di- amonds and blockchain for better supply chain traceability are two examples that impact the jewellery industry. At Pandora, our dedication within environmental, social and governance standards has been recognised by Morgan Stanley Capital International, which ranked Pandora number one in the fashion industry in 2018. 40% of consumers are more likely to buy again if they experience personalised shopping