How could the Pandora brand continue to expand and make sales despite all of the setbacks, and what can other jewellery brands learn from this? Here’s our opinion.
Concentrate on Increasing the Value of Your Brand
Pandora suffers from a severe case of eroded brand equity due to its ineffective marketing strategy, the inefficient cadence of new product launches, and a never-ending line of promotions. The company’s jewellery did not appear as “precious” or “cheap” to customers.
What Pandora Tried?
Therefore, Pandora tried two things to improve the perception of their customers: We were able to cut down on the amount of stock with recent changes to the marketing approach.
Pandora’s decision to minimise its product line benefited the Brand. Because of its widespread presence and deep discounts, customers seeking exclusivity avoided it. Audience preferences have changed. Former CEO: “Consumers want a basic design with fewer charms.” They used to wear 6–7 charms, but now only wear 5.
Effect of Global Pandemic
The global epidemic also shook the jewellery industry. Product categories and markets have inconsistent sales quantities. Some have cut non-essential spending. Others choose fine jewellery over Pandora.
Pandora reduced the number of products it sold and focused on being distinctive and personalised. The company conducted a “buy-back” scheme to mend its distributor ties. It buys unsold and underperforming goods to make new products. Sustainability-wise, that’s a good move.
How to expand and grow?
Firstly a broader customer base helps you enter new markets. Nevertheless, Adaptability increases your bottom line. Finally, Mid-market jewellery brands struggle to maintain brand equity.
If you want to keep your clientele, keep your costs low, but avoid mass-market brand connotations, which would put you on par with costume jewellery businesses. You won’t make the same mistake as Pandora. Brand tracking lets you collect customer data to hone your positioning.
Increase the desirability of the Brand Among the Younger Audiences
Pandora is considered a “young” brand because most of its customers are teenagers and students, especially young women working. The purchasing power of Generation Z, the younger generation, is estimated to be $156 billion.
Generation Z’s preference for personalised content helps Pandora. 58% of buyers will pay more for personalised jewellery and accessories. Pandora wasn’t a Gen Z brand until recently. So, the crew engaged them.
The 2021 Pandora product range and promotional campaign designed by the firm are appropriate for members of Generation Z. Y2K aesthetics, TikTok creators, and infinite product customisation and remixing are all part of the ideal world that Gen Z imagines for themselves.
Pandora has recently begun using public figures known as “faces” to promote its Brand. This group of “faces” includes artists such as Addison Rae, Charli XCX, Donté Colley, and Beabadoobee. Cecilia Cantarano is a member of this collective.
Pandora introduced new brand ambassadors and initiated a TikTok hashtag competition to increase brand awareness. The videos have received 10.8 billion views. Blarla Button helped Pandora design a Pandora Me Animal Crossing island. Pandora, Me is promoted on this island.
Players are allowed to investigate a digital recreation of Pandora’s factory in Thailand, replete with solar panels. You might also look into the individual pieces of Pandora’s jewellery. Next, investigate potential locations for photographs, such as Donte Colley’s Dance Room or Charli XCX’s Greenroom. Excellent brand ambassadors help promote your business and shape your campaign’s creative vision and direction.
Using these ideas can revitalise your Brand. Influencer marketing’s ROI is high. If released, Pandora’s financial data for this year would be noteworthy.
Conversion to Digital Distribution Channels
In the middle of the 2010s, Pandora launched its website. Brand stores and wholesalers, not the Internet, were the company’s principal sales channels until 2021, when they had to close all of their shops and focus on e-commerce.
Pandora is the most-visited luxury and jewellery website, surpassing Swarovski, Tiffany, and many others. 33% of customers cite store websites as the main factor driving new jewellery purchases. Internet sales were lacklustre.
Pandora concentrated on enhancing the digital brand experience to take customers beyond the brand awareness stage and into the purchase consideration stage.
First, Pandora emphasised online personalisation. In a UK test, customised advertising banners increased click-through rates by 17% and cart additions by 4%. The team increased newsletter marketing revenue by 60% using consumer data and machine learning techniques.
Pandora’s efforts to combine digital and physical shopping have been successful. By 2020’s second quarter, online sales had risen 176%. In 2021, the positive trend should continue.
Consumers prefer omnichannel purchasing as their “default” method. If you want to preserve your competitive advantage in the market, you must boost your underperforming activities, whether they are digital or lack a physical footprint.
Pandora Sale is a vibrant brand. Errors temporarily ruined its charm. As brand promoters, we know every crisis is a marketing opportunity. Pandora is back on the market with a more defined posture, more significant differentiation, and innovative brand marketing because it accepted its mistakes and took concrete steps to recover brand equity.
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