26 / 143
24 • BUSINESS STRATEGY
PANDORA ANNUAL REPORT 2016
Our goal is to ensure our consumers have a unique
PANDORA shopping experience wherever they meet us,
whether it is in a PANDORA concept store, a shop-in-shop
or online.
The ultimate PANDORA shopping experience is at a
PANDORA concept store. Everything about our concept
stores has been designed to show our universe of jewellery
at its best. From window displays to product zones and
interaction with sales staff, the entire experience reinforces
our brand. Supported by the PANDORA way of selling,
this 360° approach has made our concept stores an
increasingly important part of our business model – and
today consumers can find a PANDORA concept store in
most major shopping malls and streets in the world.
Branded stores
Our branded store network – including concept stores,
shop-in-shops and eSTOREs – is an integral part of our
business model. Here, our products are displayed in a
PANDORA-branded environment, giving us full control
over the consumer shopping experience, and we can
see that branded store environments have a significant
impact on sales. In 2016, branded stores made up 78%
of revenue, compared with 73% in 2015. We continue
to increase our branded store network by opening
new concept stores and shop-in-shops or upgrading
multibranded stores in which PANDORA products are
selling well. In 2016, we opened net 336 new concept
stores, net 353 new shop-in-shops, and three new
eSTOREs.
Many of our branded stores are owned and operated by
PANDORA. This gives us a number of benefits, including an
invaluable direct connection with our consumers. Others
are run in collaboration with a franchise partner. The choice
of whether to own and operate our stores or partner with a
franchisee depends on a number of factors, including store
location and market needs. By the end of 2016, 17% of our
physical branded store network was owned and operated by
PANDORA.
BRANDED RETAIL EXCELLENCE
Multibranded stores
Multibranded stores have historically been an important
part of our strategy, especially in new and expanding
markets, as the stores enable us to reach a broader
consumer base. As we move further into branded sales,
the number of multibranded stores will naturally decrease.
At the end of 2016, our jewellery was available in a total
of 3,966 multibranded stores across the globe, compared
with 5,795 at the end of 2015.
BUILDING A BRANDED
NETWORK ONLINE
As part of our efforts to raise awareness of the
PANDORA brand among Chinese consumers,
our products were launched on
Tmall.com, an
online store run by Chinese Alibaba Group, in
October.
In addition, in December we opened our
Chinese eSTORE, which, together with Tmall.
com, gives us a strong online presence in China.
Our eSTOREs work together with our
physical store network to give our consumers
a consistent PANDORA-branded shopping
experience, whether they prefer to buy their
products in a physical store or online. As well
as opening an eSTORE in China, we opened
new eSTOREs in Canada and New Zealand in
2016, bringing the total number of PANDORA
eSTOREs to 17 by the end of the year.