Pandora lowers prices in China to fight grey market trading

Danish jewellery house Pandora has announced plans to lower its retail prices in China after seeing its products increasingly sold on the  so-called ‘grey market’.


Pandora

Effective from this Thursday, the company said the price reduction will apply to the majority of its jewellery collections, lowering prices by an average of 15%. The move will bring Pandora’s Chinese prices in line with other markets.

But the main reason for the price cut is a rise in grey market sales. Unlike the black market, grey market goods are authentic, but are sold at a discount as they have been bought unofficially without permission from the brand’s owner.

This means Pandora’s jewellery is being sold outside of the brand’s approved distribution channels by unauthorised retailers, something aspirational brands tend to dislike as it can hurt their image.

In China, Pandora has seen double and triple-digit growth in revenues since its launch in 2010. The country accounted for 12% of the company’s total sales in the first quarter, however Pandora warned of a slowdown in May.

Kenneth Madsen, president of Pandora’s Pacific region, commented: “This price reduction across our jewellery assortment is one element in our strategic programme to limit grey market trading of our products in China, and continue to enhance our customer experience in the world’s largest jewellery market.”

The price cuts will be reflected across Pandora’s 170 concept stores in China, as well as its own e-commerce store and Tmall flagship store.

Copyright © 2018 FashionNetwork.com All rights reserved.

JewelleryRetail
NEWSLETTER SUBSCRIPTION