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 2 4 C O N T E N T S WI NN I NG I N OMN I - CHANNE L R E TA I L PANDORA is a globally balanced business and, historically, we have entered many markets with success. We are continuing to pursue growth in our existing markets, while balancing our busi- ness even further as we grow in newer markets. The PANDORA concept store continues to be our preferred channel, providing an inspiring and per- sonal in-store experience. The concept store is the ultimate place for inspiration and personal advice from PANDORA people. Here, we welcome the consumer with an opportunity to touch and feel our new products and we can guide the gifter in their choice of gift. We maintain a presence in multi-branded distribution channels where needed to serve our consumers if it ensures us a branded presence and inspirational product presentation. We are expanding the number of PANDORA owned concept stores (O&O). With more O&O stores as our preferred channel, we can better secure the consumer journey and experience, both in store and across channels, implement commercial decisions faster and plan across the full value chain to ensure availability of the right products at the right time while reducing surplus inventory. We are improving our online performance to be more relevant to digital savvy consumers. In addition, we are working to integrate our phys- ical and online channels further to deliver an integrated omni-channel experience, making it significantly more convenient for our consumers to shop across our physical and online stores. Consumers should be able to buy PANDORA easily on their different devices, and they should be offered multiple delivery options and great consumer service, no matter where they buy our products. AT A GL ANC E • Expand and balance our O&O footprint • Retail excellence • E-commerce growth • Omni-channel fulfillment and experience AT A GL ANC E • Strengthened brand leadership position • Marketing reach and efficiency • Inspirational consumer journey • Digital 1:1 marketing AT A GL ANC E • Next-level product innovation • Industry leading crafting facilities • Manufacturing capability expansion • Operational efficiency AG I L E MANUFACTUR I NG We have built two of the largest jewellery crafting facilities in the world. In these, we are expand- ing our manufacturing capabilities to deliver on our product and design vision. This enables us to be more efficient in production and more agile in our product development and launch new jewellery faster - in as little as 4 months. In that way we can respond even more quickly to new trends and opportunities for our consumers. Our PANDORA Innovation Centre in Thailand is lev- eraged to design and manufacture jewellery in ways that are completely new to the industry. D I G I TA L I S ED BRAND E X P E R I ENC E We are focusing our efforts on providing a con- sumer journey that is personal, inspiring and seamless across our different consumer touch points. We seek to inspire existing consumers and attract new ones with a timely view on trend and style in a PANDORA context, and communicate this view through influencers on social media, as well as through PR, events and sponsorships. We are increasingly utilising inspiring product design stories and providing a more compre- hensive product presentation. This helps guide the gifter, who is an important customer for PANDORA, as well as our target consumer. Our consumers should be able to navigate across channels and across online and offline touch points with the same personal experience. We strive to use data to recognise consumers both online and offline and to remember their pur- chase history and rationales, so that we can tailor relevant product recommen- dations and content, and provide them with product information and visualisation that inspire their imaginations. We are increasingly tailoring our marketing efforts to enable a more personal and inspir- ing consumer experience. We use traditional print and TV media, but are moving further into digital one- to-one marketing to tailor the con- tent to the individual customer.