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PANDORA IN 2016 • 7
represented 19% of Group revenue in 2016. The
accelerated growth in China that began in 2015 continued
in 2016, and we opened net 44 new concept stores in
the country during the year, bringing the total number of
concept stores in China to 97. Furthermore, as part of our
efforts to raise awareness of the PANDORA brand among
Chinese consumers, our products were launched online
on
Tmall.com, a business-to-consumer platform owned by
the Chinese Alibaba Group, in October and we opened
a Chinese eSTORE in December. Thanks to these efforts,
China now represents 4% of Group revenue, a share that
is expected to increase in the coming years. Australia
continued its strong performance. We added net 11 concept
stores to our Australian store network in 2016 and saw
double-digit like-for-like sales-out growth in the country
throughout the year.
EXPANDING PRODUCTION CAPACITY
In 2016, we crafted around 122 million pieces of jewellery,
at our crafting facilities in Thailand. Due to increasing
demand, we have decided to expand our production
capacity through a number of ongoing initiatives. With a
total investment of DKK 1.8 billion, these initiatives will
potentially double our production capacity to more than
200 million pieces a year by the end of 2019.
Our capacity expansion programme includes optimising
our existing crafting facilities in Gemopolis, as well as
building two new crafting facilities – one in Lamphun, near
Chiang Mai, and another in Gemopolis, Bangkok. The first
of these, the facility in Lamphun, was completed in late
2016 and will begin commercial production in early 2017.
Built for around 5,000 employees, the facility is primarily
optimised for rings, earrings and more complex products.
net 1,829 multibranded accounts across the world in 2016.
Of these, more than 200 stores owned by the US jewellery
chain Jared
®
The Galleria Of Jewelry (Jared) and operated by
Signet Jewelers were upgraded to shop-in-shops.
In 2016, branded revenue, which is generated through
our concept stores and shop-in-shops, increased by 30%
compared with 2015 and represented 78% of Group
revenue.
GEOGRAPHICAL EXPANSION
We continued the focus on geographical expansion in both
newer and developed markets in 2016.
In the Americas, a region that delivers 34% of Group
revenue, we opened net 87 new concept stores, including
net 27 new stores in the US, which remains our largest
market. Additionally, we significantly improved the quality
of our store network in the US through Jared’s upgrade of
more than 200 multibranded stores to shop-in-shops, and
a reduction of multibranded stores by more than 50%. In
Latin America, we also continued to expand our network
and added net 53 new concept stores, of which 21 were
located in Brazil.
EMEA represents 47% of Group revenue, and all major
European markets continued to show growth in 2016.
Revenue from Italy and France increased by more than
50% each, driven by increased brand awareness, while
our business in Germany continued to improve as our
store network became increasingly branded. Our business
in the UK also continued to develop positively, and we
experienced limited impact on market performance from
the UK’s decision to leave the EU, with the only significant
effect being the depreciation of the British pound.
Asia Pacific was our fastest-growing region, and
NUMBER OF CONCEPT STORES
BRANDED REVENUE SHARE
0
500
1,000
1,500
2,000
2,500
PANDORA owned
concept stores
Franchisee owned
concept stores
2016
2015
1,540
1,328
598
474
2,138
1,802
100
80
60
40
20
0
%
2016
2015
66%
12%
8%
58%
15%
9%
14%
18%