The Business: Pandora

Pandora is a Danish concept centred on a patented collection of high-quality silver and gold charm bracelets designed for women who want to create their own look and signature style.

Pandora was introduced to the Australian and New Zealand markets in 2005, and since that time Pandora Australia has shown exciting growth and has firmly established itself in the domestic market.

The Challenge

A key challenge in brining the Pandora concept to Australia was creating a strong market awareness and pull for its products in conjunction with selecting the right business model determined by the issues and specific requirements of operating the business in the Australian market, rather than being based on the past domestic success or the limited view of familiar business models.

Pandora had to consider the following issues in developing its Australian business model:

• Close management of lead times and product supply from its offshore production facilities
• Sufficient support staff to support a geographically expansive distribution network
• Aneedforcontrolsoverdistributionpartners
• A need for strong marketing to position the company with Australian consumers

The Solution

The choice of business models when expanding into international markets requires the development of a detailed economic, commercial, legal and country-specific perspective and a multi-business model strategy is a possible outcome.

The key issues faced during this phase commonly include:

• The development of a business model is far more complex than the simple preparation of a legal agreement with some key commercial parameters
• The choice of business model is often ill-considered or does not reflect the realities of the countries selected for expansion
• It is important to consider not only the entry business model but also how the business model needs to evolve over time
• The integrity of the international business model is the major driver of future asset value which is more relevant than the number of countries”

The Outcome

Pandora Australia undertook a phased approach to developing its Australian distribution channel, gradually moving from pure distribution to store-in-store and dedicated stores. DCS worked with Pandora Australia to develop a network strategy that involved the store-in-store and owner-operator models to increase the presence of the band in domestic the market.

The solution included the following elements:

• Development of a Tiered Distribution Model
• Introduction of a Shop in Shop Model
• Rollout of Dedicated Pandora Stores

Pandora Australia is continuing to expand its network across Australia and cement its position as one of Australia’s leading jewellery retailers.

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Getting Started

We are here to help you

We help businesses of all sizes, from large corporations to sole traders, through a diverse team and nearly 40 years of experience.