Reuters: Revenue fell 80% in five years, forcing Danish jewelry giant Pandora to restructure its Chinese business,
Reuters reported on July 11 that Danish jewelry manufacturer Pandora is exploring the restructuring of its struggling Chinese business. Its revenue in China dropped from 1.97 billion Danish kroner in 2019 to 416 million Danish kroner (approximately RMB 470 million) in 2024, a decrease of nearly 80% over five years. The share of the Chinese market in Pandora's global revenue has also fallen from 11% to about 1%. A source said that Pandora is negotiating with Chinese funds and e-commerce partners, considering granting a five-year licensing agreement for its brand and all assets, including existing inventory. Intense competition in the Chinese market, the rise of local digital brands, and consumers shifting toward buying gold and high-value jewelry have hit Pandora. Jonathan Yan, partner at Roland Berger (Shanghai), commented: "Given its performance trends and overall consumer headwinds, finding stakeholders or licensing partners will be 'difficult.' He pointed out that financial investors may not be interested in this asset, but e-commerce partners seeking higher-profit brand ownership 'may be interested,' and warned that those taking over would need to 'invest heavily' and adopt 'very innovative methods' to turn things around, which is by no means easy." Pandora told Reuters that it acknowledges the need to rebuild its brand in China and is committed to turning the situation around, saying "it will take time," while emphasizing "China is the world's largest jewelry market, and we are still fully committed to our business in this market." The company has planned to close 50 Chinese stores this year, and has replaced its China head three times since 2022.
Original: https://www.toutiao.com/article/1837350934441307/
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