12•BUSINESS STRATEGY
PANDORAANNUAL REPORT2014
Consumer-centric andmarket-led design
Our retail insight systemprovides uswith sales-out figures for
products in concept stores.This data is fedback intoproduct
design. If a certaindesignor colour performs particularly
well, for example,wemay create anumber of variations of
that design for thenext product launch.
This process is knownas design-to-data. Sincewe
introduced this process in2012, the sales-out shareof new
products (definedas products launchedwithin the last 12
months) has increased significantly, indicating that our design
team is able tomeet consumer demand in terms of design,
colour,materials andprice.
Launch strategy
Inorder to keep freshness and relevance inour collections,
we introduced anew launch structure in the secondhalf of
2012.Wenowhave sevenproduct launches a year, arranged
around traditional fashion and gift-giving seasons to ensure
consumers have a constant varietyof newPANDORA
products to choose from.
This launch strategyhas contributed significantly to
PANDORA’s growth in like-for-like sales-out figures, as it
both refreshes the assortment anddrives traffic into stores
throughout the year. In total, PANDORA introduced387
PRODUCTDEVELOPMENT STRATEGY
Our strategy involves capitalising on our product offering
through consumer-centric, market-led design of new
products. Many factors, including sales-out data on
existing PANDORA products, rawmaterial 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.
PANDORA’s primary focus is to continue to develop
the Charms and Bracelets categories. Our secondary
focus is the Rings category, whichwe believe holds
significant, untapped potential. It is the largest jewellery
category in theworld, but rings generated just 6.1% of
PANDORA’s revenue in 2013.We therefore focused on
growing the Rings category, leading to a share of 10.0%
of revenue in 2014. Out of a total of 387 new pieces,
11.1%were rings.
Both the Charms and Bracelets categories and the
Rings category saw significant growth in 2014. TheOther
jewellery category, which includes earrings, necklaces
and pendants, completes the PANDORA product universe
and holds great long-term potential.
DESIGNAND PRODUCTS
PANDORARELEASED 387
NEWPIECES IN 2014
NUMBEROF EMPLOYEES INOUR
PRODUCTION FACILITIES EXCEEDS 7,900
