We recently found some great information about Pandora’s 2012 plans hidden inside an article about their Q3 financial reports from last year. In addition to the usual financial jargon and investor language were some juicy quotes from Pandora about their strategy for reversing the sales slump that they were seeing (I can’t believe their sales were actually down because I was certainly buying a lot during this time!):
Pandora reiterated that it won’t be raising prices anymore for the rest of 2011 and in 2012 and plans to offer more merchandise at entry-level price points. It also will permanently reduce the prices of some items while offering promotions on others
The company notes that some of its clients have “unsatisfactory stock turn” on discontinued and slow-moving products and is considering discontinuing slow-moving products, offering promotions to flush out discontinued merchandise, conducting terminal sales through retail and e-commerce outlets and/or offering one-off exchanges for new products.
More products and items at entry-level prices is good news for both newcomers and charms addicts alike! While I love some of the nice higher-end pieces, I admit that I get a lot of joy from pieces like the silver open works charms. They are gorgeous and take up a good amount of space on the bracelet, and are available for $25! This seems to coincide with Pandora’s new Spring/Summer 2012 preview video that shows more open works pieces and clips.
Permanent price reductions, sales and specials via their concept stores and web retailers, more promotions is also great news to hear. Most interesting to me, however, is this thought about offering one-off exchanges of old charms for newer ones. This would be a great way to get people into the stores and to help encourage fans to support Pandora with genuine products!
Pandora said it is pouring more resources into opening concept stores and into the retail stores that deal heavily in the brand while cutting back on those that only carry a few collections.
Pandora plans to accelerate the closure of low-value “white-level” retailers–those retailers who sell just one or two collections and have basic Pandora displays– in developed markets while emphasizing the opening of concept shops and shop-in-shops.
It also sounds like Pandora is planning to open more concept stores and to deepen their relationship with bigger retailers. I love going in to my local concept stores so I totally support this plan. The few times that I’ve tried to browse and purchase Pandora charms from other jewelry stores were not really that great — it’s tough to get a sales person excited about helping you out in the Pandora counter sometimes. They really need to be knowledgeable and passionate about the Pandora line, and I’m sure the sales commissions on their normal products is more compelling to the sales reps. Shopping at dedicated stores is the way to go in my opinion, the experience is more fun!
It definitely sounds like 2012 is going to be an exciting year for Pandora fans!