Pandora reportedly considers restructuring troubled China operations

Pandora reportedly considers restructuring troubled China operations

Danish jewellery giant Pandora is exploring ways to restructure its business in China following years of declining sales both online and offline. The world's largest jeweller by volume of pieces sold is in discussions with China-based funds and e-commerce partners to potentially license its brand and all of its assets, including existing inventory, for five years [1].

Pandora's struggles in China are multifaceted. The post-pandemic consumer malaise and a property crisis have exacerbated the situation, while local, digital-savvy brands and a shift in consumer preference towards gold and high-value jewellery have also posed significant challenges. Pandora's China revenue has tumbled nearly 80% to 416 million Danish crowns ($65.10 million) in 2024 from 1.97 billion crowns in 2019, with the country's revenue contribution slumping to around 1% from 11% over that period [2].

The company has seen three changes in leadership for its China business since 2022, including the current managing director Thomas Knudsen, who started in January and soon after announced plans to close 50 China stores this year. Finding a stakeholder or licence partner could be challenging due to the performance trends and broader consumer headwinds, according to Jonathan Yan, a principal at consultancy Roland Berger in Shanghai [3].

E-commerce partner firms looking into higher-margin brand ownership may be interested, but financial investors might not be keen on the asset given the current trends. A model for such a deal could be the sale of U.S. apparel retailer Gap's China business to Baozun, one of China's biggest e-commerce partner firms, for $40 million to $50 million in 2022 [1]. However, the value for the potential Pandora deal remains undetermined.

Pandora's e-commerce business has seen sales slide more dramatically than at physical stores, highlighting the need for a strategic overhaul. A successful restructuring would require significant investment and an innovative approach, even then, the turnaround would be challenging [3].

Pandora remains committed to its business in China, acknowledging the need to reposition its brand and work on a turnaround. The company has not addressed specific questions about possible restructuring in the country but has indicated that it will take time [1].

References:
[1] https://finance.yahoo.com/news/exclusive-pandora-exploring-ways-restructure-073717581.html
[2] https://ca.finance.yahoo.com/news/exclusive-pandora-exploring-ways-restructure-073717071.html
[3] https://www.reuters.com/world/china/pandora-exploring-ways-restructure-struggling-china-business-sources-say-2025-07-11/