Pandora to Woo Gen Z-ers for Revenue Boost
September 26, 2021
RAPAPORT... Pandora has unveiled a strategy that will focus on Gen Z and Millennial consumers, as it hopes to double US and triple China revenue from 2019 levels.
The Danish jeweler expects revenue to grow by 6% to 8% each year, reaching between DKK 24.8 billion and DKK 26.2 billion ($3.91 billion and $4.13 billion) in 2023, it said last week. It also expects its earnings before interest and tax (EBIT) margin to grow to 25% to 27% for that year.
“Pandora is back on the growth track,” said Pandora CEO Alexander Lacik. “We have vast untapped opportunities in our existing core business and they will drive long-term sustainable and profitable growth.”
As part of its growth strategy, called “Phoenix,” Pandora will increase its production capacity by around 60%, or 80 million pieces of jewelry per year. About 60 million of those pieces will be made at a new DKK 1 billion ($157.8 million) manufacturing plant in Vietnam, while 20 million will come from increasing capacity at existing factories in Thailand.
Pandora also aims to target a new group of shoppers through Phoenix, it noted. The company will launch a new store concept, which it believes will “fuel brand desirability” and extend its reach to Generation Z and millennial consumers.
“Our objective is to be the largest and most desirable brand in the affordable-jewelry market, and we have a strong foundation to deliver on that objective,” Lacik explained.
Separately, Pandora vowed to reduce greenhouse gas emissions by 50% before 2030 and aims to become net zero by 2040. The retailer has also targeted full gender parity by 2030, with one-third of its leadership comprising women by 2025. It intends to spend 30% of it its branding content budget with suppliers owned by women or underrepresented groups, it added.
Image: A Pandora gift bag. (Shutterstock)
Article originally published on Diamonds.net here