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GOVERNANCE AND MANAGEMENT • 45
COMMODITY
Description
At PANDORA, we aim to provide our
consumers with high-quality products at
affordable prices. We are highly dependent
on a stable cost of goods sold for the products
currently on and close to market.
As we produce most of our products at our
crafting facilities in Thailand from high-quality
materials, we are mainly dependent on the
cost of raw materials, especially gold and
silver.
Risk
Therefore the risk for PANDORA implies
increased cost of goods sold for our product
range if commodity prices increase.
Actions taken
• PANDORA policies covering management
of raw material price fluctuation risk
• PANDORA Pricing Board ensuring relevant
pricing of products in design process
• Group commodity and currency hedging
policies to ensure exposure within defined
limits. The Group hedges around 100%,
80%, 60% and 40% of the risk for the
following 1-3 months, 4-6 months, 7-9
months and 10-12 months respectively
PRODUCT DEVELOPMENT
Description
At PANDORA, a major part of our revenue
comes from products that have been on the
market for less than a year.
Because we design and craft most of our
jewellery, we are dependent on an effective
design and new product introduction process.
We are dependent on:
• designs to our consumers’ preferences
• designs to market trends
• PANDORA retail excellence
• PANDORA marketing excellence
Risk
Therefore the risk for PANDORA implies a
new design of jewellery not meeting customer
expectations or not gaining the desired traction
in the markets.
Actions taken
• PANDORA new product introduction
process implemented
• PANDORA drop strategy and collection
management based on retail insight and
product life cycle data and portfolio
analysis - throughout the vertically
integrated value chain
• External and internal design talent use