The Danish jewelry brand Pandora, which was once extremely popular in the Chinese market, is now experiencing a steady retreat.

Pandora recently released its second-quarter earnings report, revealing that the company plans to double its store closure target in China from the originally planned 50 stores to 100 stores this year. Additionally, media reports indicate that the store closure plan is being implemented alongside layoffs. After sales locations are closed, store employees will receive compensation but will not be reassigned to other locations.

In July this year, market rumors suggested that Pandora is currently in negotiations with Chinese funds and companies, with plans to conduct business in China through authorized local retailer operations in the future.

More than a decade ago, when Pandora entered the Chinese market, the brand attracted consumers with its DIY "bracelet + charm" product model, allowing customers to select various shaped beads from the brand's collection for free customization, winning the favor of many young women. In 2017, sales of Pandora's signature charm bracelets accounted for more than half of its total revenue.

However, as domestic consumption trends in China have changed, this Nordic jewelry brand has begun to lose its appeal. After several consecutive years of decline, Pandora's revenue share in the Chinese market dropped from 9% in 2019 to 1% in 2024.

A market department representative from a domestic listed gold company analyzed that when Pandora first entered the Chinese market, there were very few DIY jewelry options domestically, and the brand's fashionable designs attracted significant pursuit from young Chinese consumers. However, in subsequent years, many lower-priced imitations appeared in the market. Meanwhile, "bracelet + charm" products became widespread. Many gold retailers, such as Chow Sang Sang, Luk Fook Jewellery, and Lao Miao, launched DIY gold charm products.

Beyond fashion appeal, value retention has become another consideration factor when purchasing jewelry. In previous years, when gold prices had not yet surged significantly, a gold charm bracelet cost two to three thousand yuan, a price comparable to Pandora's products at the time, but the former is obviously more value-retentive today. Pandora's products are mainly made of copper-silver alloy and zirconia. "In traditional Chinese concepts, these are considered fake jewelry, primarily decorative and not valuable," the representative stated.

China's jewelry retail market landscape is becoming increasingly complex. Beyond "mid-to-low-end" jewelry brands like Pandora, high-end brands are also facing difficulties. Weak sales of Cartier and Van Cleef & Arpels caused their parent company Richemont Group's jewelry division to experience a 23% revenue decline in the Chinese market during fiscal year 2025 (March 2024 - March 2025).

"The younger demographic of gold consumers is eroding market share from other jewelry categories," the aforementioned representative noted, explaining that today's young consumers have increasingly practical purchasing concepts, which is causing other brand halos to gradually fade.