Pandora: India is next jewelry market to conquer
At the beginning of the month, Danish jeweler Pandora announced that it’s taking its wares into one of the world’s three-largest jewelry markets: India. The country has a jewelry market worth in excess of $40 billion, and Pandora expects it to grow 7% annually into 2021. The company has committed to opening 50 shops in the country over the next three years, but penetration is going to be hard: Indians have traditionally been focused on gold and diamonds. Pandora prefers silver, which only makes up 5% of the market.
This difficulty could be counteracted, though, by a shift in consumer preference. Younger Indians are becoming more desirous of western brands generally, and jewelry is no exception.
According to Anders Colding Friis, Pandora’s CEO:
“Jewelry as a fashion statement is increasingly popular among consumers and with India already being one o the largest jewelry markets in the world, the country holds a great potential for Pandora.”
Pandora ended last September with 2010 stores worldwide – up from 1,666 the previous September. This breakneck pace has seen the company revisit its promise to open “between 200 and 300 new shops per year in 2016 through 2018”. Now, that number is “around 325”. According to Alm. Brand Bank analyst Michael Friis Jorgensen: “the expansion into India will greatly support Pandora in achieving the target it has set up for new shops.”
For now, Pandora will work through local distributor Pan India – but, as has been the case in other markets, the company will probably look to take control of distribution in a few years, once it’s figured out the Indian jewelry market.
Dominion holds Pandora in its Global Trends Luxury Fund.
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