PANDORA Annual Report 2017

P A N D O R A A N N U A L R E P O R T 2 0 1 7 O U R B U S I N E S S 1 9 C O N T E N T S DE S I GN Our jewellery is designed with both future trends and previous collections in mind, which enables us to offer contemporary and innovative designs, while also activating our existing assortment to balance sales of existing and new, aspirational products. We have a strategy for our product collection that ensures we continue to build and enhance our full jewellery universe to meet the needs of our consumers. Our design process begins when our Design, Production, Marketing and Retail teams gather to plan the year. We begin by evaluating the perfor- mance of previous collections, using input from our regions and franchisees, as well as up-to-date sales-out figures from our concept stores. This enables us to see which products, designs, mate- rials, colours and price points performed particu- larly well, and to create new designs with this in mind. We combine this information with insights into global trends within jewellery, fashion and all aspects of consumer behaviour, as well as information about the latest innovations in mate- rial and jewellery design from the PANDORA Innovation Centre in Bangkok and machine and material suppliers. SOURC I NG , P RODUCT I ON & SUP P LY CHA I N Almost all our jewellery is produced at our own facilities in Thailand, where we combine stand- ardised, scalable and modern production methods with centuries-old crafting techniques. Every piece is hand-finished by experienced and skilled crafts- people – and we can quickly upscale production of high-demand products when needed. During the product development phase, each new piece is drawn in 3D at the PANDORA Inno- vation Centre in Bangkok. These are then tested with consumer panels and selected store staff on a global scale, and the first prototypes are made. At the same time, our team analyses each design to establish the most efficient crafting process. Our Design and Product Development teams then work together to refine the designs. In order to maintain the quality for which we are renowned for, we employ a strict quality testing process, and source high-quality raw materials from around the globe, taking into account many aspects from cost and delivery times through to sustainable sourcing and business ethics. This ensures we have timely access to the materials and equipment we need – and that it comes from suppliers who share our ethical approach. Our Design team then begins to sketch out a vision for the collection that will be realised by our entire value chain on its way to the con- sumer. The Design team works closely with our Innovation team to create individual designs and incorporate large innovative concepts. This holistic approach enables us to accommodate the latest consumer trends and take advantage of innovative products, materials and production processes. Once a collection is locked, the pieces go into production at our crafting facilities in Thailand, using lean production principles to ensure short lead times. A small number of products are pro- duced by carefully selected third-party suppliers in Thailand, China and Italy. When a collection is launched, it is available in every store across more than 100 countries. To meet ongoing demand throughout the year, our Supply Chain teams constantly assess sell-out rates, and optimise our distribution to ensure our products are in the right locations at the right time. 2 0 1 7 I N NUMB E R S ~200 62 44 THOUSAND CHARMS SOLD PER DAY NEW RINGS INTRODUCED NEW NECKLACES & PENDANTS INTRODUCED ~40 54 THOUSAND BRACELETS SOLD PER DAY NEW EARRINGS INTRODUCED 2 0 1 7 I N NUMB E R S 117 MILLION PIECES OF JEWELLERY CRAFTED 2.6 BILLION STONES HAND-SET 88% OF PIECES PRODUCED AT OUR OWN FACILITIES 97% OF THE SILVER GRAINS USED ORIGINS FROM RECYCLED SOURCES WOR LD L E ADE R I N A F FORDAB L E J EWE L L E RY THE WOR LD ’ S L ARGE S T BRANDED MANUFACTUR - E R OF J EWE L L E RY WI TH A FUL L VA LUE CHA I N