Danish jewelry maker Pandora will slow down a planned country-wide relaunch of its brand in China. According to the company’s CEO, the plans has been paused since customer demands has yet to recover to pre-pandemic levels.
Pandora sees China as a potential driver of future growth, but the world’s largest jewelry market is recovering slowly from strict COVID-19 restrictions.
“The middle-income earner in China is much more careful as they are coming back to the market versus what we saw in Europe and in the U.S.,” Chief Executive Alexander Lacik said on Wednesday, May 3.
“If I look at the traffic volume vs pre-pandemic levels, we still have a long way to go,” he added.
While China only accounts for 3% of Pandora’s revenue, the company hopes to grow its business through a brand relaunch in the third quarter of this year. The brand had originally planned to do a country-wide marketing campaign. Now Pandora aims to go for one city at a time.
“Given that the traffic volume is still way below where it needs to be for us, we’re probably going to do a sequential launch,” Lacik said.
The group now expects to generate organic sales growth between -2% and 3% this year, which is better than its earlier estimate of between -3% and 3%. Analysts expect 2% sales growth this year, according to a poll provided by the company.
Source: zawya.com
