The Danish jewelry brand Pandora is losing its foothold in China as sales have declined more than 23 percent from 2022 to 2023. Five years ago, China made out 9 percent of Pandora’s global revenue, but now it has dropped to 2 percent.
The development is in disconnect with growth in the general jewelry sector. Last year, the Chinese jewelry market grew by 14 percent, according to the China Jewelry and Jade Industry Association.
The development underlines an ongoing downward trend, which is not only due to the Covid pandemic. Post-pandemic the Chinese jewelry trends have shifted towards a more rational consumption, which puts luxury brands at an disadvantage. This includes a shift towards gold rather than gold-plated or sterling silver jewelry. The reason is a prioritization of resale potential over only seeing jewelry as aesthetic self-expression.
In Pandora’s heyday in China, the brand increased product release of its unique beads and pendants from two to seven times a year. In Chinese-language press, this gave the brand the nickname “Zara of the jewelry industry.”
The fast production rate ultimately left consumers overwhelmed and the focus on whimsical, fairy-tale themes and collabs with Disney and Marvel has maybe pushed away more mature customers.
China has seen a general rise of popularity of local brands such as Chow Tai Fook and Lao Feng Xiang, who specialize in high-carat gold. This shows a trend within the younger consumer group, who are increasingly interested in jewelry with cultural significance. The jewelry is associated with good fortune and fine craftmanship.
Globally, there has been a growth across the key markets in 2023. This includes growth in the US market and growth in the European market.
Source: Jing Daily
