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16 • BUSINESS STRATEGY
PANDORA ANNUAL REPORT 2016
Earrings category – and out of a total of 426 new pieces
launched throughout the year, around 10% were earrings.
In addition to our charms and bracelets, rings and earrings,
our necklaces and pendants completes the PANDORA
product universe and holds great long-term potential.
Launch strategy
We have seven product launches a year, arranged around
traditional fashion and gift-giving seasons, to ensure
consumers have a constant variety of new PANDORA
products to choose from.
This launch strategy has contributed significantly to our
growth, as it both refreshes the assortment and drives traffic
into stores throughout the year. Slow-moving items are
retired through sales promotions, clearance through outlets
or permanent stock-balancing programmes in selected
countries.
Consumer-centric design and innovation
We strengthened our front-end design process in 2016 to
increase innovation and customer-focus in our designs.
This included creating two new departments – Commercial
Innovation and Product Innovation – that work with
our design team on innovative new products, materials
and production processes. The new structure gives us a
more holistic approach to innovation and development
that enables us to embed our designs more deeply in
current consumer needs and bring new concepts into our
collections.
In addition, our retail insight system provides us with
sales-out figures for products in our concept stores. This
data is fed back into our product design. If a specific design
or colour performs particularly well, for example, we may
create a number of variations of that design or colour for the
next product launch – a process known as design-to-data.
Increased revenue from new products indicates that our
design team is able to meet consumer demand in terms of
design, colour, materials and price.
When creating a new collection, our goal is to maintain
the high level of quality for which we are renowned, while
also introducing new details that make our hand-finished
jewellery beautiful, current and forever relevant. Each
collection is designed to further expand our jewellery
universe, and our jewellery is designed with both future
trends and previous collections in mind. This enables
us to offer contemporary and innovative designs, while
also activating our existing assortment to balance sales of
existing and new products.
We produce the majority of our jewellery at our own
crafting facilities in Thailand, from which we can ensure
a constant supply of high-quality jewellery, and scale
production of different pieces up or down to fulfil demand.
PRODUCT DEVELOPMENT STRATEGY
Our strategy capitalises on our product offering through
consumer-centric, market-led and innovative design of new
products. Many factors, including sales-out data on existing
products, raw material prices and price points, are taken into
account when deciding on designs, and the themes for each
collection are chosen based on global trends and seasonality.
Our charm bracelet concept, launched in 2000, remains
our strongest product category. However, we are developing
other jewellery product categories, one at a time. We have
successfully built our Rings category over the last few years
– Rings made up 13% of our revenue in 2016, compared
with 12% in 2015. In 2016, we turned our attention to the
FULL JEWELLERY
PRODUCT OFFERING
PANDORA released 426 new
products in 2016