Jewellery maker Pandora would prefer to invest in physical stores or its own online sales platform rather than join large e-commerce marketplaces like Amazon or Farfetch, its chief executive said on Wednesday.
“If you’re a small and unknown brand, marketplaces offer a great opportunity, because they provide you with an audience. I already have an audience,” CEO Alexander Lacik said during an interview at the Reuters Next conference on Wednesday.
Pandora, the world’s largest jewellery maker by production capacity, has found a niche between cheaper accessories sold by the likes of H&M and more expensive jewellery like that of Tiffany & Co.
“Eight out of ten women globally are aware of our brand, so I don’t need to make you aware of me. What I need to do is to show you what I’ve got, and I can to this much better if I have a direct relationship with my customer,” he said.
The $12.3 billion company, headquartered in Copenhagen, has increased investment in e-commerce during the pandemic. It is present on China’s T-mall platform but not on large global platforms like Amazon or Farfetch.
“Marketplaces always have to make a compromise for all the clients they are serving. I don’t have to compromise,” he said.
Pandora’s more than 2,600 physical stores remain the core of its business and still account for 75 per cent of global sales.
“Nearly two-thirds of my customers are men buying jewellery for their girlfriends, wifes, grandmothers or children. And we know that men buying jewellery need help,” he said.
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- Reporting by Jacob Gronholt-Pedersen; Editing by Kirsten Donovan, of Reuters.