WELCOME TO the world of PANDORA RETAIL FRANCHISE CONCEPT
A simple idea...
… became a universe of jewellery
PANDORA was founded in 1982 based on a simple idea:
PANDORA has developed into one of the world’s largest jewellery brands, present in more than 65 countries across six continents. Millions of people around the world own PANDORA jewellery, and almost two pieces of PANDORA jewellery are sold every second.
To offer women across the world a universe of high quality, hand-finished, modern and g enuine jewellery at affordable prices. The PANDORA story is about a company with a distinctive brand and d istinctive products that in just a few years has made the exceptional journey from a local Danish jeweller’s shop to a world-leading jewellery company.
2 · PANDORA
PANDORA inspires women across the world to express their female individuality. All women have their individual stories to tell – a personal c ollection of special moments that makes them who they are. That is why we celebrate these moments. That is why we say these moments are unforgettable. Like the story of PANDORA.
PANDORA · 3
PANDORA AT A GLANCE One of the world’s three largest jewellery brands at retail value, present in more than 65 countries across six continents
History 1982-1999: The early years Vertically integrated business model
Distinctly positioned within the affordable luxury segment of fine jewellery
Strong financials…
Our cornerstone product is the collectible charm bracelet, complemented by a range of other collections
…supported by compelling top line drivers
4 · PANDORA
Back in 1982, a jeweller’s shop that would one day become PANDORA was established in Copenhagen, Denmark, by goldsmith Per Enevoldsen and his wife Winnie. In 1987, after several successful years as wholesalers, the retail activities were discontinued and the company moved to larger premises. The first in-house designer joined the company and PANDORA began to focus on creating its own unique jewellery. In 1989, the company decided to start manufacturing its jewellery in Thailand.
In order to increase production capacity, PANDORA opened a large scale, fully-owned manufacturing facility in Thailand in 2005, followed by a second facility in 2008. Today
PANDORA now owns five manufacturing facilities in Gemopolis, Thailand, where more than 3,600 skilled employees are dedicated to manufacturing hand-finished jewellery of outstanding quality, based on traditional craftsmanship and modern technology. PANDORA operates and manages a vertically integrated business model from in-house design and manufacturing to global 2000-2009: Building an marketing and direct distribution in most markets. international presence In 2010, PANDORA was listed on the NASDAQ OMX In 2000, PANDORA’s charm bracelet concept was first Copenhagen stock exchange and further expanded its launched in the Danish market. Consumers embraced the product offering by launching the Black Crown Diamond concept, and in the following years the company began Watches collection. to expand internationally, entering new markets like the US in 2003 and Germany and Australia in 2004. PANDORA · 5
Our mission
To offer
Global presence
Women
Hand-finished affordable prices across the world
a universe of high quality,
modern and genuine jewellery at
,
Today, PANDORA jewellery is available in more than 65 countries across six continents through over 10,000 points of sale, including close to 500 PANDORA branded concept stores. In 2010, we expanded into new, important markets, including China, Italy and Russia. We intend to continue
entering new geographical markets and expanding our presence in existing markets. We pursue a global brand strategy focusing on creating brand consistency across all communication channels and markets to support our vision of becoming the world’s most recognised jewellery brand.
Our vision Become the world’s
Jewellery brand
most recognised
6 · PANDORA
PANDORA direct distribution Third-party distribution PANDORA offices
PANDORA · 7
RETAIL FORMATS PANDORA Concept store A Concept store is a full-blown PANDORA store. Concept stores carry a complete assortment (100% of all design lines) of PANDORA products, have a branded PANDORA store-front including front sign and are fitted only with PANDORA fittings and displays. PANDORA always owns the rights to the brand and store concept. PANDORA kiosk concept A Kiosk Concept is a free-standing PANDORA store – usually situated in shopping centre thoroughfare. A kiosk carries a large complement of PANDORA jewellery and watches. It is branded with PANDORA signage and is furnished solely with PANDORA fittings and displays. PANDORA Shop-in-shop The Shop-in-shop is a clearly defined space in a store which is dedicated to PANDORA. The Shop-in-shop has PANDORA fittings and displays, and carries a wide assortment of PANDORA products (4-5 design lines). The Shop-in-shop will typically look very much like the Concept store on the inside (except smaller), generally without the PANDORA branded store-front.
Gold partner Gold partners are multi-brand retailers with a strong PANDORA profile. Gold partners carry a large assortment (4 design lines). Gold partners have store space dedicated to PANDORA and are equipped with PANDORA fittings and displays. Gold partners receive many of the same benefits as branded stores. Silver Partner Silver partners are multi-brand retailers which carry a medium assortment (3 design lines). Silver partners also have PANDORA branded fittings in the store, but to a lesser extent than gold partners. Silver partners receive a wide range of benefits from PANDORA. White Partner White partners are those multi-brand retailers that carry a limited assortment (1-3 design lines), but do not contribute significantly to profiling PANDORA in the store. White partners are required to have basic PANDORA displays in the store, but not PANDORA fittings. White partners receive basic level of support from PANDORA.
Benefits
Concept Kiosk Store
Consumer recognition / Differentiation Visual Guideline Directives Merchandising support
Shop-in-Shop
Electronic direct marketing Product line expansions Pre-launch opportunity
Gold
Silver
Priority service levels Full POS program Branded packaging
White 8 · PANDORA
PANDORA · 9
Australia’s strategic focus - 2012 and beyond
FINE JEWELLERY MARKET SPLIT Fine jewellery market split in price range and level of branding at retail value.
PANDORA will sharpen its focus on branded retail store environments and increase the number of retail concept stores in 2012. This strategy is in line with PANDORA’s global direction and reflects the high expectation among our customers that they receive the full brand experience when they buy PANDORA jewellery. total in eur 112BN
FOCUS ON BRANDED SALES CHANNELS
57%
28%
15%
Continued expansion of concept stores, shop-in-shops and gold stores.
past
future
85%
91%
unbranded
76%
store roll- out
branded
increasing share of branded products
swarovski
thomas sabo michael hill
affordable jewellery
10 · PANDORA
bulgari cartier
tiffany & co. de beers
luxury jewellery
graff van cleef & arpels
high-end jewellery
PANDORA · 11
the jewellery The range is stunning, feminine and contemporary. It is designed in Denmark and hand-finished in gold and silver. The collection includes Moments, the ever-popular bracelet and charms chosen to celebrate life’s most precious moments. We give women the pieces so they can combine elements to create jewellery that matches their style. Every woman will wear their PANDORA collection in different way, a way that is unique to them. Charms & bracelets PANDORA’s charm bracelet includes more than 600 charms and clips, that you can combine on the PANDORA bracelet. All pieces are handfinished in either solid sterling silver, 14 carat gold, 18 carat white gold, leather or textile. Rings
Earrings PANDORA’s earrings concept allows you to combine a hoop with your favourite pendants, creating your own, distinctive look. Choose from a range of unique studs and earrings to suit any occasion. Necklaces and Pendants Necklaces and pendants are created in sterling silver in a mix of tones and textures, in 14 carat gold and a mix of the two. You can combine chains then add pendants and clips to create a necklace that suits your personal style. Watches This premium quality, stylish Swiss-made watch collection includes interchangeable watches where you can change bezels and straps to create your own unique and personal timepiece.
PANDORA’s selection includes stackable rings made in silver and gold with gemstones and cultured pearls. Prices from $49, making this a truly affordable luxury. There are endless possibilities to mix and match rings to fit any occasion.
12 · PANDORA
PANDORA · 13
THE PaNDORA
PANDORA
franchise
OFFERS
A PANDORA Franchise is not just a store. It is an ideology. And just as every one of our products has endless combination possibilities, a PANDORA franchise opportunity is much more than just sales. PANDORA franchisees, are in business for themselves, but never alone. PANDORA is there to support them throughout their career as a PANDORA franchisee.
They will receive all the necessary know-how to operate a successful PANDORA store. Our extensive support material covers the whole concept: from the store layout, induction of new employees, financial planning and ongoing performance assessment, merchandise selection, business development and much more.
PANDORA also offers comprehensive initial and ongoing training in selling skills, in customer service, visual merchandising, store marketing and personnel management.
14 · PANDORA
•
A tried and tested business model
•
An opening package from site selection to store opening
•
A renowned brand appreciated internationally
•
n internationally tested and unique concept rooted in the A Danish heritage
•
A strong marketing program with quality support material
•
The possibility of selling more than double the industry average
•
ngoing support in sales, advertising, marketing, purchasing O and stock management
•
Dedicated field support person
•
Initial training programme for franchisees
•
An international franchise network
•
Accounting expertise
PANDORA · 15
PANDORA FRANCHISE CONCEPT PANDORA has created an organisation with diverse competencies, which enables us to provide first-class support to our franchisees. We give the support that they need to excel and perform in their store. Marketing
Assortment
PANDORA provides extensive marketing support to the store – both in terms of executing marketing campaigns as well as supporting you in your own local marketing activities.
Our collections are of course the focal point of the franchise package. We always seek to design attractive collections that appeal to our customers.
PANDORA network To provide our partners with information about PANDORA, developments, trends, retailing etc., meetings and conferences are held on a regular basis. Mystery shopper To improve the customer service in the stores PANDORA offers mystery shoppers to evaluate the service. Retail support In addition to supporting Shop Managers in the daily operations, the Regional Sales Manager supports the shop in recruitment and training of a new Shop Manager, re-fittings, local events, campaigns and on assortment selection.
Logistics Our franchise partners have top priority in the event of product shortage. This means franchisees will get orders before other partners.
We offer a strongly branded store concept developed in line with our global brand image.
product Assortment
PANDORA Network
Mystery shopper
Store profile
Logistics
pandor a fr anchise Store profile
Retail Support
Customer loyalty program The PANDORA Club helps retain customers by offering club memberships and benefits. visual merchandising Each campaign is supported in store with strong visual merchandising support to ensure a universal customer experience.
Knowledge sharing
Training
Our business intelligence allows us to compare performances across markets. By sharing, we become better at store operation.
The PANDORA training concept offers a wide range of training tools and modules designed to ensure a unique approach in our stores around the world.
16 · PANDORA
Marketing
Customer loyalty program
Knowledge sharing
Training
visual merchandising
PANDORA · 17
The PANDORA retail concept In today’s competitive environment, it is increasingly important for global companies to have ‘one face’ displayed around the world. PANDORA’s retail concept - a set of guidelines, products, store visuals, and store support processes - aims to ensure that the PANDORA brand is effectively and uniformly presented to consumers across all global markets.
Store front The PANDORA store front is quite literally the outward face we present to the customer. The store front is planned specifically for each store by the local PANDORA office in consultation with the centre landlord and PANDORA HQ.
The location of stores is important for PANDORA as a brand in each specific market. Locations are directly linked to building the PANDORA brand image. PANDORA’s customers seek a high quality product that is beautifully designed and created to high standards. It is advantageous to locate PANDORA stores in the vicinity of brands that are perceived to offer a similar level of high quality product and service. High profile department stores also serve as good benchmarks for a prime store location.
Store design A new PANDORA Concept Store takes all existing features and specific local/street requirements into consideration. The existing store front’s framework is used provided it is in accordance with the PANDORA Design Manual.
18 · PANDORA
PANDORA · 19
The concept store A Concept store is a full-blown PANDORA store. Concept stores carry a complete assortment (100% of all design lines) of PANDORA products, have a branded PANDORA store-front including front sign and are fitted only with PANDORA fittings and displays.
20 路 PANDORA
PANDORA 路 21
The kiosk CONCEPT A Kiosk Concept is a free-standing PANDORA store – usually situated in a shopping centre thoroughfare. A kiosk carries a large complement of PANDORA jewellery and watches. It is branded with PANDORA signage and is furnished solely with PANDORA fittings and displays.
22 · PANDORA
PANDORA · 23
Testimonials
“
PANDORA offers a unique product, strong marketing initiatives, sharp operation at head office, an evolving brand and support for the network. It’s a perfect formula for any business to grow and grow.
The reporting that comes to us from head office is very useful. For example, being able to look at comparisons with the franchisee group, seeing where we fall, our customer’s average dollar spend, the volume of customers, conversion rates and so on helps us to manage the store. On a day-to-day basis, the store runs simply and effectively because those controls are in place. Coming from a jewellery background, we have confidence when we look at the product and know the quality is there. It has been designed with longevity, fashion and appeal all built into it. We can see that the quality is there and we enjoy selling quality product.
Ferris Howley, Franchise owner, Macquarie and Erina Fair and Tuggerah, NSW
Stephen Matthews, Franchise owner, Kotara, NSW
“
Kurt Crowther, Franchise owner, Queen St Mall, OLD
“
“
24 · PANDORA
“
“
The thing that’s so unique about PANDORA is that the products resonate across generations; we see that happen where three or four generations of the one family really enjoy the brand.
PANDORA · 25
contact For more information please email National Property Manager Email: AU.Property@pandora.net
26 路 PANDORA
National Franchise Manager Email: AU.Franchising@pandora.net
For more information on the PANDORA brand and jewellery collections visit www.pandora.net
PANDORA 路 27
visit us at www.PANDORA.net