In connection with the company’s Capital Markets Day, Pandora announced new financial targets and provides further insights into its growth strategy, Phoenix.
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Alexander Lacik, President and CEO of Pandora, said, “We are very pleased to confirm that Pandora is back on the growth track. We have vast untapped opportunities in our existing core business and they will drive long-term sustainable and profitable growth. Our objective is to be the largest and most desirable brand in the affordable jewellery market. And we have a strong foundation to deliver on that objective.”
On 4th May 2021, Pandora announced the completion of its turnaround programme, Programme NOW, and provided a high-level overview of its new growth strategy, Phoenix. Phoenix is focused on the significant opportunities in Pandora’s core business and has four pillars aiming at delivering sustainable and profitable revenue growth: Brand, Design, Personalisation and Core Markets.
Pandora shares further details from the Phoenix strategy. Pandora sees ample opportunities to grow its core markets. The long-term ambition is to double revenue in the United States and triple revenue in China, both from 2019 levels.
Pandora will personalise its customer experience by implementing a number of omni channel features. The company will also launch a new store concept. As one of the world’s most recognised jewellery brands, the ambition is to fuel brand desirability and extend reach to win with Gen Z and Millennials.
Pandora has three clear brand and design priorities: Drive the core (Moments), fuel with more platforms and establish dedicated support models for each platform (“launch and leverage”). Pandora will continue building for a digital future. Today, 75 percent of Pandora’s transactions are direct-to-consumer, and leveraging customer data will fuel future growth.
To meet expected demand and increase its risk resilience, Pandora will expand its manufacturing capacity by around 60 percent or 80 million pieces of jewellery annually. A new facility with capacity of around 60 million pieces will be built in Vietnam, while additional capacity of around 20 million pieces will be added at existing sites in Thailand. Total investment around US$157.6 million.
Pandora will continue its sustainability leadership and announces new decarbonisation targets and an inclusion and diversity strategy.
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The new commitments include reducing greenhouse gas emissions by 50 percent across own operations and value chain by 2030 from a 2019 baseline. The target has been approved by the Science Based Targets initiative. Pandora also commits to become net zero by 2040.
Pandora also commits to ensure gender balance in all hiring and promotions, have 1/3 women in leadership (VP level and above) by 2025 and full gender parity no later than 2030 and spend 30 percent of branding content budget with suppliers owned by women or underrepresented groups