Core Viewpoint - Pandora, once a beloved brand among young consumers, is now facing significant challenges in the Chinese market, leading to the decision to close 100 stores this year, reflecting a shift in consumer preferences and a lack of innovation from the brand [2][3][6]. Group 1: Store Closures and Market Performance - Pandora plans to double its store closure from an initial 50 to 100 in China, indicating a rapid contraction in its market presence [3]. - The brand has already closed 22 stores in the first half of 2025, with a total of 12 concept stores closed in Q2 2025 alone [4][6]. - As of August 20, 2025, Pandora has 187 stores in mainland China, down from over 250 at its peak in 2015 [4]. Group 2: Financial Performance - In Q2 2025, Pandora reported a revenue of 7.075 billion DKK, showing an organic growth of 8% globally, but the Chinese market continues to struggle [5][6]. - Revenue in the Chinese market has plummeted nearly 80% from 19.70 billion DKK in 2019 to 4.16 billion DKK in 2024, with comparable sales down 21% in 2024 and further declining in 2025 [6]. Group 3: Consumer Sentiment and Brand Positioning - Consumers are increasingly viewing Pandora as outdated, with complaints about product quality and value retention, leading to a decline in emotional attachment to the brand [7][8]. - The brand's positioning as a "light luxury" option is under pressure, as younger consumers gravitate towards more valuable and personalized products, such as gold and trendy collectibles [8][9]. - Industry experts highlight that Pandora faces structural challenges in its business model, struggling to provide the emotional value of luxury goods while lacking the cost-effectiveness of mass-market products [9].

Core Viewpoint - Pandora, the Danish jewelry brand, is significantly scaling up its store closures in China from an initial plan of 50 to 100 stores, alongside simultaneous layoffs in the region [1][3]. Group 1: Financial Performance - In Q1 2025, Pandora's sales in China were only 96 million kronor, a decline of 11% compared to 2023 [3]. - In Q2, comparable sales in the Chinese market dropped by 15%, while the group's overall comparable sales increased by 3% during the same period [3]. - The revenue share of Pandora in the Chinese market has decreased from 9% in 2019 to just 1% in 2025 after several years of decline [3]. Group 2: Market Strategy and Consumer Perception - Pandora's unique selling proposition is its "bracelet + charm" DIY product model, which has attracted many young female consumers since its entry into the Chinese market in 2015 [4]. - Despite its popularity, consumer feedback is mixed, with many expressing dissatisfaction regarding the quality of materials used, such as alloys and 925 silver, which are prone to oxidation and devaluation [5][8]. - Some consumers prioritize emotional value over investment value, stating that the joy of purchasing jewelry is more important than its resale value [5].