According to an article released by the news agency Reuters September 20th 2010 by Anna Ringstrom and John Acher:
Danish jewelry maker and retailer Pandora has recently offered $2.16 billion dollars in public offerings. Pandora announced that shares would begin trading October 5th 2010 at the Danish Copenhagen bourse. The move towards becoming a public company will enable the company to continue its expansion while “also give a partial exit to its private equity and family owners” (Reuters, Ringstorm/ Archer).
In addition,
According to an article published Bloomberg Businessweek August 31st 2010 by By Zijing Wu and Nikolaj Gammeltoft:
PANDORA made a profit of $171 million and was considering the public offering in order to expand into the Eastern European and Brazilian markets.
In 2006 Pandora shifted from a jewelry manufacturer to an international jewelry retail chain, while maintaining its own jewelry-manufacturing factory in Thailand. According to the company’s website, the company sells it’s jewelry in 47 countries, offering over 1,800 unique jewelry designs. The company’s business model is consisted of selling the jewelry through its 260 concept stores as well as through other jewelry stores. Currently the company is most known for its silver and gold charm bracelets, which have become extremely popular in the US market.
The concept of letting the consumers choose and make their own product has now become a popular trend within many jewelry retailers in the United States and the entire world. These days most jewelry stores offer some sort of customizable jewelry product. Those who were quick to recognize Pandora’s success either chose to carry Pandora products or began marketing their own beaded customizable jewelry. Those who failed to recognize the new trend truly “opened Pandora’s box” and lost a great amount of customers and revenue resulting in many cases in the inability to compete, and at times bankruptcy.
I admire Pandora’s transition from a jewelry manufacturer to a jewelry retailer. Pandora was able to transform an entire industry in less than five years while greatly increasing the company overall profits and quickly became one of the most famous jewelry retailers in the world.
Written by Michael Milner
Sources:
This comment has been removed by the author.
ReplyDeleteI felt like this post was somewhat disorganized. I was not clear of the message you were trying to send by stating the current financial situation Pandora is in, and then moving on to background of the company without relating it to the current news. I would like to know why having private equity and family owners limits the company from expanding when it has made $171 million in profit. Also, did you mean $171 million in profit in this year or in total?
ReplyDeleteHowever, it was interesting to find out who pioneered the trend of marketing customizeable jewelry.
I'm sorry you felt that the financial situation of Pandora was unclear. The $171 million profit was for last year. My intention was to present Pandora's quick entry to the jewelry retail industry, from supplier to retailer. I'm sure that great sums of money like $171 million may seem as a clear path towards expansion but liquid capital isn't always enough when a corporation is trying to expand into another country while still maintaining its operations in 47 other countries. In such a case, $171 million aren't really all that much... In addition, the other reason for public offering was to enable the partial exit of some of the owners and the company's private equity. Many business owners lucky enough to run a successful business don't actually make that much money since they continue investing in their own company, usually pulling out greater sums of money once they successfully negotiate an exit plan.
ReplyDelete