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26 • BUSINESS STRATEGY PANDORA ANNUAL REPORT 2016
With 8,131 points of sale across more than 100 countries,
PANDORA’s full universe of jewellery is readily available to
consumers almost anywhere around the globe.
The global jewellery market was worth more than
DKK 2,100 billion in 2016. According to Euromonitor
International, this is expected to grow to around DKK
2,900 billion by 2021, representing a huge opportunity for
PANDORA. Our goal is to ensure we have a balanced global
business in which we grow our presence in new markets
while also increasing revenue in developed markets.
Growing in new and developed markets
Our business model is strong in developed markets as our
signature product, the charm bracelet, encourages repeat
purchase of charms. However, we also see significant
opportunities for leveraging our brand recognition in
other jewellery categories, especially in markets where
the PANDORA brand is already strong. To achieve this,
we continued to develop our product offering around
the globe in 2016. In addition, we further reduced our
dependence on individual markets by entering new markets
and expanding our presence in established markets,
such as China, Italy and France. In each new market,
we adopt a tailored approach in order to take advantage
of opportunities, present our brand in the right way and
mitigate risk.
Americas
We have an established business in the Americas, and the
US remains our largest single market, delivering 25% of our
total revenue in 2016. We also have a strong presence in
the Canadian market with 78 concept stores and making up
12% of revenue in the region. There is still great untapped
potential for PANDORA in South America, although in
some countries – such as Brazil – the local economic
situation could prove challenging.
EMEA
In 2016, we consolidated our existing regions of Europe,
the Middle East and Africa into one region called EMEA.
This will promote knowledge-sharing across the region, and
will improve central support for individual countries.
There is still great growth potential in this region. Italy
and France, for example, are two of the largest jewellery
markets in EMEA, but are still relatively new markets for
PANDORA. Thanks to a concerted effort, combined revenue
from these markets constituted 33% of our total revenue in
EMEA in 2016, compared with 27% in 2015. At the same
time, we succeeded in growing in our developed markets. In
the UK, for example, revenue grew by 9% (or 25% in local
currency).
Asia Pacific
Asia Pacific was our fastest-growing region in 2016.
However, this region still holds significant potential. In many
countries in the region, our presence is still limited, including
large jewellery markets such as China. In 2016, we further
increased our focus on China – a country that represents
one-third of the global jewellery market – opening net 44
new concept stores and an eSTORE as well as launching our
products on .
Asia Pacific also includes a number of developed
markets and we continued to grow in these markets in 2016.
Australia, for example, saw revenue grow by 37%, driven by
increasing sales in all product categories.
BALANCED GLOBAL BUSINESS