Pandora Jewelry Substitution China CEO

Freshness began to decline, and the gray business such as purchasing became the biggest enemy of Pandora in China.

According to the Women's Daily, Danish jewellery brand Pandora Pandora (PNDORA.CPH) announced on Friday that it will appoint Geena Tok, the head of Nike's former Greater China direct sales department, as the CEO of the Chinese mainland. The appointment will take effect next month. She will increase the number after taking office. Purchasing and other "gray market" efforts to report to the Asia-Pacific region president Kenneth Madsen. Previously, Geena Tok has been with the Nike Group for 17 years and has extensive retail related experience.

Since the beginning of this year, Pandora's performance has begun to decline, affected by the group's CEO Anders Colding Friis has submitted his resignation, will leave at the end of August, the brand is currently looking for its replacement. The body shop's former CEO Jeremy Schwartz will be the brand's chief operating officer in September, and he will be in charge of the company's CFO Anders Boyer until Pandora finds a new CEO.

It is noteworthy that this is Pandora's biggest high-level personnel change in recent years, which is related to the fact that the performance caused by the decline in sales of its flagship products has continued to improve.

According to the fashion headline data, Pandora's second-quarter revenue was flat with the same period last year, recording DKK 4.82 billion, or about 747 million US dollars, lower than market expectations, the profit before depreciation and amortization was 31.1%, less than 33.4% in the same period last year. .

For the decline in the Group's performance, Anders Colding Friis once admitted that it was mainly affected by the gray business of the US retail downturn and China Shopping. More and more brand jewelry was imported into China through the gray market and sold online, resulting in its products. The retail price in the region has fallen by an average of 15%. The Group is actively taking measures to curb and minimize the flow of its products into China through other channels. At present, Pandora has more than 200 stores in China and employs more than 1,400 people.

Pandora was introduced to the Chinese market by agents in 2009, but the official introduction of the Chinese market was in 2015. After entering China, Pandora's recognition among the female groups in Beijing and Shanghai increased by 53%. Once successfully, young Chinese consumers were able to gain rapid growth. The brand officially entered the Tmall flagship store last year, but did not disclose the separate electricity. Commercial sales ratio data.

In addition, the high base is also one of the reasons for Pandora's lack of growth in the Chinese market during the quarter. However, as the market became saturated, the expansion of the brand in the Chinese market last year has stabilized. According to the fashion headline data, Pandora's sales in the first quarter of the Chinese market surged 125% to $62.54 million last year, which is a huge gap with this year's decline.

Just as Pandora’s performance was at a bottleneck, Tiffany, once smashed into the altar, returned to the young consumer market through product innovation. Under the leadership of new CEO Alessandro Bigliolo and creative director Reed Krakoff, Tiffany's performance began to recover.

In the three months ended April 30, Tiffany's sales rose 15% year-on-year to $1 billion, and same-store sales increased by 10%. All product categories, including wedding jewellery, recorded growth in all regions of the world. Net profit rose 53% year-on-year to $142.3 million, exceeding analysts' expectations.

In the first quarter of fiscal 2017, Tiffany's net profit only recorded a 6.2% increase, sales growth was stagnant, and same-store sales fell 3% year-on-year, which means that Tiffany is gradually regaining lost market share. Among them, Tiffany's sales in the Asia-Pacific region recorded a significant increase in the performance of Greater China, a 28% year-on-year increase to 329 million US dollars, followed by Japan, where sales in the region rose 17% to 151 million US dollars. Sales in Europe increased 13% year-on-year to $107 million, while sales in North America increased 9% to $425 million.

Although Pandora and Tiffany are not the same price range brands, they will inevitably meet in the segment of young consumers. And the ones that are really comparable to Pandora are those brands with different textures but similar prices, such as APM Monaco from Monaco. The brand's style is young and fashionable, and the materials are mostly made of silver with rhinestones, pearls, etc., priced at 800. Between 2,500 RMB. At the same time, the turnover of traditional jewellery brands from Hong Kong, Chow Tai Fook, Tse Siu Lam, Chow Sang Sang and Luk Fook Group, also benefited from the recovery of the retail market in Hong Kong and accelerated recovery.

There is a view that for a luxury jewellery brand like Pandora, China is an important market that cannot be lost, especially when retail sales in the United States and the United Kingdom are in a downturn.

Consulting firm McKinsey pointed out in the "Double-click" Chinese Consumers Annual Report that the global fashion industry will continue to polarize in 2018, and the growth rate in the luxury sector will be significant. The growth of Chinese consumers' fashion consumption will reach 6 in the next five years. % to 7%.

According to Bain and the Italian Luxury Goods Association's "Global Luxury Market Monitoring Report Spring Edition 2018", this year's global personal luxury goods market sales revenue increased by 6% to 8%, Lightinthebox Coupon Code reaching 276 billion to 281 billion euros, accessories The three categories of jewellery and beauty will be the key forces driving growth, with growth rates expected to be 7%, 7% and 6% respectively.

It is reported that in addition to the Chinese market, Pandora's next key development goal is India, plans to add 50 new stores in India in the next three years, and has sold 110 million euros last year to recycle the brand's distribution business in the Spanish market, officially entered the market. The regional market also reclaimed its distribution rights in areas such as Belgium and South Africa.

Earlier this year, Anders Colding Friis tried to adjust Pandora's strategic goals to a certain extent, slowing down the expansion. After the news of the departure, Anders Colding Friis said in an interview that he was "a bit too optimistic" about the development of the brand, but thought that he had tried his best and there was not much regret.

Berenberg analyst Zuzanna Pusz said in a report that behind the departure of Anders Colding Friis is the sharp criticism of investors, Pandora's management team need to reshuffle.

Another industry source pointed out that Pandora's popularity in the United States and China has many commonalities, neither endorsement of high-end materials nor brand stories of hundreds of years, but win by marketing. Compared with competitors such as Cartier and Tiffany, the lack of celebrity effect And the hollowness of the extravagant genes makes it always a sense of crisis.

However, whether Pandora can extend his golden age through this reshuffle is still to be tested by the market. No one can predict, after all, this is a consumer era dominated by a changing young people.

Due to lower-than-expected results in the second quarter, Pandora lowered its annual sales growth by 4% to 7%, and the profit margin before depreciation and amortization was 32%. It revealed that 250 stores will be opened Soufeel Coupon Codes o lay off about 400 people, including 200 employees in Thailand.

Since the beginning of this year, Pandora Group (PNDORA.CPH) shares have fallen 43% to DKK 392.8 per share. The current market value is about 42.7 billion DKK, which is about 6.65 billion U.S. dollars.