Mother’s Day is around the corner and many moms, no doubt, will receive new charm bracelets as gifts on the big day. Charm bracelets have soared in popularity in the US, with PANDORA leading the pack.
Earlier this month, the Danish jewelry company boosted its guidance for 2011 sales to 30 percent growth, a five percent bump, following a stellar first quarter of over 40 percent growth. The company’s confidence is based on a high growth trajectory over the past several years, nearly doubling its sales in both 2009 and 2010.
PANDORA found its niche in the middle of a global recession when affordable (starting at about $25) changeable charms seemed like a fun splurge. For some jewelry stores, the charm trend was a lifeline during the recession when customers stopped most discretionary spending. Charm bracelet customers returned regularly to check on the ever-changing assortment of beads available to customize their bracelet.
Growth has come from increasing demand in established markets and expansion into new markets. The company entered several markets with huge growth potential in 2010, including China, Russia, and Italy. Its products are sold in the US through its own concept stores and through boutiques and mostly independent jewelers.
PANDORA is vertically integrated, which means it controls production quality and distribution. The company’s tight management of its product has generated efficiencies and a better than average gross margin of 70 percent. To accommodate its growth, PANDORA added two more in-house production facilities in 2010 with one more planned in 2011 for a total of five, all located in Thailand.
Charms make up 70 percent of sales, while charm bracelets account for 12 percent and rings and other jewelry round out the rest. Extending its brand, PANDORA launched a line of watches in October 2010.
The company introduced its charm bracelet product in 2000 in Denmark, where consumers embraced the concept. The products are now sold in more than 40 countries on six continents. PANDORA went public in late 2010.
Other jewelers have followed PANDORA’s lead. Kay Jewelers, owned by Signet, launched its Charmed Memories line in 2010. Designers such as Juicy Couture, Coach, and Betsey Johnson have also expanded their charm offerings to capitalize on the trend. One of the oldest charm manufacturers, the Copenhagen-based Trollbeads, has also grown in the US as the style has picked up speed.
Charm bracelets were worn by Queen Victoria during her reign and were a must-have for bobby soxers during the 1950s. Who knew they would be charming shoppers again in 2011? PANDORA is betting that the trend won’t wane for some time to come.
Earlier this month, the Danish jewelry company boosted its guidance for 2011 sales to 30 percent growth, a five percent bump, following a stellar first quarter of over 40 percent growth. The company’s confidence is based on a high growth trajectory over the past several years, nearly doubling its sales in both 2009 and 2010.
PANDORA found its niche in the middle of a global recession when affordable (starting at about $25) changeable charms seemed like a fun splurge. For some jewelry stores, the charm trend was a lifeline during the recession when customers stopped most discretionary spending. Charm bracelet customers returned regularly to check on the ever-changing assortment of beads available to customize their bracelet.
Growth has come from increasing demand in established markets and expansion into new markets. The company entered several markets with huge growth potential in 2010, including China, Russia, and Italy. Its products are sold in the US through its own concept stores and through boutiques and mostly independent jewelers.
PANDORA is vertically integrated, which means it controls production quality and distribution. The company’s tight management of its product has generated efficiencies and a better than average gross margin of 70 percent. To accommodate its growth, PANDORA added two more in-house production facilities in 2010 with one more planned in 2011 for a total of five, all located in Thailand.
Charms make up 70 percent of sales, while charm bracelets account for 12 percent and rings and other jewelry round out the rest. Extending its brand, PANDORA launched a line of watches in October 2010.
The company introduced its charm bracelet product in 2000 in Denmark, where consumers embraced the concept. The products are now sold in more than 40 countries on six continents. PANDORA went public in late 2010.
Other jewelers have followed PANDORA’s lead. Kay Jewelers, owned by Signet, launched its Charmed Memories line in 2010. Designers such as Juicy Couture, Coach, and Betsey Johnson have also expanded their charm offerings to capitalize on the trend. One of the oldest charm manufacturers, the Copenhagen-based Trollbeads, has also grown in the US as the style has picked up speed.
