Core Viewpoint - Pandora, a well-known Danish jewelry brand, announced a significant increase in its store closure plan in China, from 50 to 100 stores, amid declining sales in the region [1][5][6] Group 1: Sales Performance - Pandora's sales in China have drastically declined from 11.26 billion Danish Krone (approximately 1.62 billion USD) in 2021 to 5.64 billion Danish Krone (approximately 814.4 million USD) in 2023 [5][6] - The company's total sales for the second quarter reached 70.8 billion Danish Krone (approximately 11.1 billion USD), slightly below analyst expectations [5][6] - Comparable sales growth slowed from 6% in the previous quarter to 3%, which was also below analyst forecasts of 4% [5][6] Group 2: Market Strategy and Changes - Following a series of store closures, Pandora's revenue share from the Chinese market has plummeted from 9% in 2019 to just 1% [6] - There are reports suggesting that Pandora may exit the Chinese market entirely, transitioning to a model where local retailers operate under its brand [6] Group 3: Consumer Sentiment and Product Issues - Consumer feedback on Pandora's products has been mixed, with many expressing dissatisfaction regarding the quality and durability of the materials used, such as alloy and 925 silver [7][9] - The resale value of Pandora jewelry has significantly decreased, with second-hand prices for items dropping to as low as 10-30 Yuan per piece, compared to original prices of several hundred Yuan [9] - The rise of local jewelry brands, particularly those focusing on gold, has shifted consumer preferences towards more valuable and durable options [9] Group 4: Production and Cost Challenges - The price of silver, a key raw material for Pandora, is near a 15-year high, impacting production costs [10] - The company has raised prices three times since last fall to offset rising raw material costs and import tariffs in the U.S., its largest market [10]