Young Shoppers Take Shine to Lab-Grown Diamonds

Pandora’s abandonment of mined diamonds has apparently not hindered its standing with younger consumers.

Speaking to the Financial Times (FT) Tuesday (May 7), Alexander Lacik, CEO of the mass-market jeweler, said younger buyers helped fuel a boom in lab-grown stones that had led to a decline in sales of mined diamonds, and helped the company best its luxury rivals.

Lab-grown diamonds are opening up the industry to new consumers, he said, as these stones are usually about a third of the cost of the alternative.

“People are discovering that a diamond is a diamond. It’s a different value proposition, and people are voting with their wallets,” Lacik told the FT. “Older customers are more wedded to mined diamonds. Younger ones are more open to lab-grown.”

The report notes that Pandora became the first major jeweler to move to a lab-grown-diamond-only strategy in 2021 as it pushed to expand its offerings beyond the charm bracelets and necklaces for which it had been known.

The company nearly doubled its sales of lab-grown diamonds in the first quarter, increasing revenue by 87%, the FT said.

Gen Z’s embrace of lab-grown diamonds makes sense in light of PYMNTS Intelligence research showing that this age group — more so than other younger consumers — is most likely more likely to point to buying an expensive retail product as their main financial goal than to mention paying for an upcoming event or show.

“In fact, consumers in this group are seven times as likely to prioritize the former as the latter,” PYMNTS wrote last month.

By contrast, millennial and bridge millennial consumers were the most likely to list paying for an event or show as their top goal.

“By 2030, barely five years from now, Gen Z will represent a third of the workforce. Their disposable income is projected to increase by sevenfold and their spending by sixfold as their incomes rise and they begin to benefit from the $90 trillion transfer of wealth headed their way from parents and grandparents,” PYMNTS CEO Karen Webster wrote recently.

“For that reason, Gen Z is the generation that all businesses are courting — they are their future workers, customers, business partners and investors.”

At the same time, this age group is also struggling to make ends meet, with 59% of Gen Z consumers living paycheck to paycheck, despite half of them not paying rent or mortgage.

“With such a financial cushion, the question remains as to why these young adults struggle to live within their means,” PYMNTS wrote last month. “One answer: Gen Z consumers cite splurging on nonessential items as a top reason for their financial lifestyle.”

Source: DCLA

US Retail Sales Slow Slightly in March

March US retail sales increased at a slower pace than the previous month’s as inflation eased and the job market improved.

Revenue grew 0.7% from the month before to $709.6 billion — adjusted for seasonal variation — compared to an increase of 0.9% in February, according to data the US Census Bureau released Monday.

“As inflation for goods levels off, March’s data demonstrates steady spending by value-focused consumers who continue to benefit from a strong labor market and real wage gains,” said National Retail Federation (NRF) CEO Matthew Shay. “In this highly competitive market, retailers are having to keep prices as low as possible to meet the demand of consumers looking to stretch their family budgets.”

Sales climbed 2.7% from a year earlier, on par with February’s year-on-year results, the NRF added.

March sales were up year on year in six of the nine retail categories the NRF monitors, compared to eight last month. Sales in the clothing and accessories segment — which includes jewelry — were flat compared to February, but advanced 2.1% versus the same period a year ago. Online sales saw the largest year-on-year gain, rising 15%, while electronics, furniture, and building and garden supply products fell.

Source: DCLA

Pandora Raises Full-Year Forecast Amid ‘Healthy’ Sales

Pandora has lifted its outlook for the full year as third-quarter and early fourth-quarter sales remain strong amid the implementation of a new strategy and increased tourism.

The Danish jeweler now expects sales will rise 5% to 6% on an organic basis for 2023, compared with the 2% to 5% rise it had reported earlier in the year, it said last week. The earnings before interest and taxes (EBIT) is unchanged at around 25%.

“We are very pleased with our results this quarter,” said Pandora CEO Alexander Lacik. “Our investments in the brand are attracting more consumers into our stores. We have delivered strong broad-based growth.”

Current trading at the start of the fourth quarter is “healthy,” with like-for-like growth in the high-single-digit levels, Pandora noted.

The company’s sales increased 6% to DKK 5.57 billion ($812.1 million) in the three months ending September 30. Organic growth was 11%, while sales rose 9% on a like-for-like basis. The increase in sales was a result of the jeweler’s investment in further measures through its Phoenix program, a growth and brand transformation strategy it started in 2021. An unexpected pickup in both domestic spending and tourist purchases also drove sales. In addition, the company benefited from the expansion of its lab-grown diamond line, which increased 84% on a like-for-like basis, it said.

Pandora to Woo Gen Z-ers for Revenue Boost

Online sales grew 11% year on year in the third quarter, representing 16% of total revenue for the period. Profit slipped 26% to DKK 543 million ($78.9 million).

“Initiatives under Phoenix are on track and yielding positive results,” the company added. “Additionally, the brand has demonstrated its strength amid a weak macro in 2023. Pandora therefore enters the fourth quarter, the biggest quarter of the year, with confidence.”

Source: DCLA

Pandora’s New Lab-Grown Diamond Campaign Stars Pamela Anderson

Pandora is expanding its lab-grown diamond offerings, showing off its latest jewels in a new star-studded campaign.

The “Diamonds for All” campaign will highlight some familiar faces, including model and actress Pamela Anderson.

“I like the fact that these are lab-grown diamonds, and knowing the jewelry is crafted from recycled silver and gold makes me feel good about wearing it. It is actually the more radical, kind of glamorous move,” said Anderson.

She’s joined in the campaign by American Sign Language performer Justina Miles, model and Vogue Creative Director-at-Large Grace Coddington, actress Amita Suman, model Precious Lee, model Sherry Shi, and musical artist and dancer Vinson Fraley.

The campaign was shot in New York City by photographer Mario Sorren and directed by Gordon von Steiner.

It celebrates “the breaking of conventions and tells a new diamond story,” said Pandora.

“From ‘diamonds are a girl’s best friend’ to ‘diamonds are everyone’s best friend.’ From ‘diamonds on ring fingers’ to ‘diamonds on every finger.’”

Grace Coddington and cat in Pandora campaign
Model and Vogue Creative Director-at-Large Grace Coddington, a noted cat enthusiast, poses for Pandora’s new campaign with a furry friend.

Mary Carmen Gasco-Buisson, chief marketing officer at Pandora, said the new campaign will help consumers reimagine diamond traditions.

“Our diamonds are not for the few, for a once-in-a-lifetime occasion, or only for giving. They represent personal meaning that each of us can create,” said Gasco-Buisson.

Pandora first announced its move into the lab-grown diamond jewelry market in May 2021, stating it would no longer be using natural diamonds—a stone it, notably, used in only a small percentage of its jewelry—amid its push for “sustainably created” and affordable products.

It introduced its “Pandora Brilliance” collection to the United Kingdom before rolling out to new markets, landing in the United States and Canada last August.

Previously called “Diamonds by Pandora,” the company’s lab-grown diamond line is now called “Pandora Lab-Grown Diamonds.”

Within the U.S. jewelry trade, there is a polarizing debate around lab-grown diamonds, but Pandora has appeared confident in its move into the market.

Luciano Rodembusch, president of Pandora North America, shared his insights on Pandora’s lab-grown diamond collections and the market at large in an email interview with National Jeweler.

“We shifted from mined diamonds to exclusively lab-grown diamonds to lessen the impact on the planet and to deviate from unfair working practices in the mining industry,” he said.

“Because of this shift, we’ve been able to create a collection of diamonds that are more sustainable and more affordable for every consumer.”

Pandora has framed its move into lab-grown diamonds as a push for sustainability, a claim that some in the jewelry industry have taken issue with, but the company has remained firm on its stance.

“We are committed to making lab-grown diamonds more sustainable. Our diamonds are grown, cut and polished using renewable energy at our facilities and have a carbon footprint of only 9.17 kg CO2e per cut and polished carat,” said Rodembusch.

“Consumers will continue to purchase jewelry, and it is our responsibility to reduce our emissions, like with our lab-grown diamond collections, so we can reduce our impact on the planet.”

As noted on the company’s website, the diamonds Pandora uses in its jewelry are grown in the United States. It has been reported that they are grown at De Beers’ Lightbox factory in Gresham, Oregon, though officials from both companies have declined to comment on this claim.

Rodembusch noted Pandora’s second-quarter earnings surpassed analysts’ estimates, which he viewed as a positive signal for lab-grown diamond demand.

“By democratizing diamonds, we created an affordable jewelry line that brings quality, sustainable lab-grown diamonds to everyone, which is what we strive to do as a brand,” he said.

Source: DCLA

Pandora introduces lab-grown diamond collections

Pandora has announced the introduction of three new lab-grown diamond collections, deviating from traditional jewellery styles and embracing original designs.

These new offerings are aimed at catering to a broader range of customers, in what the Danish jewellery manufacturer and retailer calls its ‘mission to Democratise Diamonds’.

Unveiling the new collections
The recently introduced collections include Pandora Nova, which showcases round brilliant and princess cut stones. Notably, Pandora Nova introduces an exclusive four-prong setting that enhances the diamond’s visibility.

The Pandora Era collection reimagines timeless, classic designs while Pandora Talisman offers five pendant designs that provide an elevated version of the beloved charm jewellery.

All collections feature high-quality lab-grown diamonds with excellent cut, near colourless and VS+ clarity. These diamonds are available in various carat weights and set in either 14-carat white gold, 14-carat yellow gold, or sterling silver.

Expansion and global availability
Pandora’s commitment to democratising diamonds extends to its geographical reach. Following their successful launch in the UK, US and Canada, Pandora Lab-Grown Diamonds will now be introduced to Australia, Mexico and Brazil.

This expansion aligns with Pandora’s mission to provide high-quality, affordably priced jewellery with exceptional craftsmanship.

The company’s CEO, Alexander Lacik, expresses the ambition to reach a wider audience around the world and further establish its presence in the market.

Cultural icons and campaign
Pandora plans to introduce the new collections to the public through an upcoming campaign featuring a lineup of cultural icons. The campaign’s unveiling is scheduled for 29 August.

According to Pandora’s Chief Marketing Officer, Mary Carmen Gasco-Buisson, these collections and the associated campaign emphasise the brand’s distinctive perspective on diamonds.

The aim is to position diamond jewellery not just for special occasions but as an everyday adornment that adds a touch of joyful sparkle to any setting.

Environmental considerations and sustainability
Lab-grown diamonds are identical to mined diamonds in terms of characteristics and grading standards. Pandora’s commitment to environmental sustainability is evident in its practices.

Since August 2022, the company’s Lab-Grown Diamonds collections have been produced using 100% renewable energy, significantly reducing their carbon footprint compared to traditionally mined diamonds.

Pieces crafted since the same time period are set in 100% recycled silver and gold, aligning with Pandora’s goal of using exclusively recycled materials for crafting by 2025.

Global availability and pricing
The new collections will be introduced on 29 August and will be available in more than 700 stores across the US, Canada, the UK and Australia starting from 31 August.

Selected collections are set to launch in Mexico and Brazil by the end of October 2023, with a comprehensive market rollout anticipated in the first quarter of 2024. Prices for these collections begin at $290.

The Pandora Lab-Grown Diamonds range was formerly known as Diamonds by Pandora.

Source: DCLA

World’s top jewellery maker Pandora ditches mined diamonds

                          Pandora jewellery

Pandora, the world’s biggest jeweller, is launching a collection using exclusively lab-made diamonds in the US and Canada as part of the company’s strategy to eliminate mined gems and create more affordable products with less associated emissions.

The Danish company, which plans to make its operations carbon neutral within three years, said the collection is the first one crafted with 100% recycled silver and gold.

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“This brings greenhouse gas emissions of the collection’s entry product – a silver ring with a 0.15 carat lab-created diamond ($300) – down to 2.7 kg CO2e, which is equal to the average emissions of a t-shirt,” Pandora said.

The flagship product, a one carat lab-created diamond set in a 14 carat solid gold ring and sold for about $1,950, has a footprint of 10.4kg CO2e, which is less than the average emissions of a pair of jeans.

The jeweller, best known for its charm bracelets, has committed to craft all its pieces from recycled silver and gold by 2025.

Pandora launched its first Pandora Brilliance collection using only man-made diamonds in the UK last year.

“Lab-created diamonds are just as beautiful as mined diamonds, but available to more people and with lower carbon emissions,” chief executive officer Alexander Lacik said in the statement.

World’s top jewellery maker Pandora ditches mined diamonds
The Danish company, best known for its charm bracelets, already doesn’t include mined diamonds in most of its pieces. (Image courtesy of Pandora.)
While producing diamonds is energy-intensive, Pandora said its gems would be made using only renewable energy.

Since 2011, when prices peaked thanks to China’s younger shoppers, diamonds have faltered. Lab-grown stones, initially priced confusingly close to the real thing, posed a challenge.

Top diamond makers reacted to the new kind of diamonds, widely embraced by young consumers as they look identical to mined stones, by launching a joint marketing campaign.

Under the motto “Real is Rare”, the Natural Diamond Council (formerly the Diamond Producers Association), which groups the world’s leading diamond companies, launched a series of film-like spots targeting millennials — those born between 1981 and 1996.

Failing that, they begun selling man-made diamonds themselves. Anglo American’s De Beers created the Lightbox brand to sell alternative diamonds for a fraction of the price of the mined ones.

Ethical concerns
Despite the establishment of the Kimberley Process in 2003, aimed at removing conflict diamonds from the supply chain, experts say trafficking of precious rocks is still ongoing.

Miners and world famous jewellers including Tiffany & Co, have come up with innovative ways of certifying their stones as ethically mined, mostly based in blockchain technology.

In 2020, the New York-based company began providing customers with details of newly sourced, individually registered diamonds that trace a stone’s path all the way back to the mine.

Source: DCLA

Natural-Diamond Trade Hits Back at Pandora

Leading trade organizations have lashed out at Pandora’s recent statements about lab-grown stones, claiming the retailer misrepresented natural diamonds and caused harm to the industry.

Pandora announced it would no longer sell mined diamonds and would instead stock synthetics, linking the decision to its environmental goals. The launch of a lab-grown line will help “transform the market for diamond jewelry with affordable, sustainably created products,” the Danish jeweler asserted last week.

Pandora’s proclamation wrongly positioned lab-grown as an “ethical choice versus natural diamonds,” five jewelry groups said in a joint statement Friday. The signatories were the Responsible Jewellery Council (RJC), the Natural Diamond Council (NDC), the World Jewellery Confederation (CIBJO), the World Diamond Council (WDC) and the International Diamond Manufacturers Association (IDMA).

The diamond industry employs tens of millions of people around the world, the organizations pointed out. The communities that benefit from the sector need its support “more than ever” given the hardship resulting from Covid-19, they added.

“The misleading narrative created by the Pandora announcement implying the natural-diamond industry is…less ethical and the impetus behind Pandora’s move to lab-grown diamonds, particularly given the inconsequential [quantity] of diamonds Pandora features in its collections, can have unintended but substantial consequences on communities in developing nations,” the groups said. “The industry organizations have called upon Pandora to support communities by correcting the record.”

Pandora used mined diamonds in about 50,000 of the 85 million pieces it created in 2020, it said.

Pandora was not immediately available for comment.

Source: DCLA

Natural-Diamond Trade Hits Back at Pandora

Leading trade organizations have lashed out at Pandora’s recent statements about lab-grown stones, claiming the retailer misrepresented natural diamonds and caused harm to the industry.

Pandora announced it would no longer sell mined diamonds and would instead stock synthetics, linking the decision to its environmental goals. The launch of a lab-grown line will help “transform the market for diamond jewelry with affordable, sustainably created products,” the Danish jeweler asserted last week.

Pandora’s proclamation wrongly positioned lab-grown as an “ethical choice versus natural diamonds,” five jewelry groups said in a joint statement Friday. The signatories were the Responsible Jewellery Council (RJC), the Natural Diamond Council (NDC), the World Jewellery Confederation (CIBJO), the World Diamond Council (WDC) and the International Diamond Manufacturers Association (IDMA).

The diamond industry employs tens of millions of people around the world, the organizations pointed out. The communities that benefit from the sector need its support “more than ever” given the hardship resulting from Covid-19, they added.

“The misleading narrative created by the Pandora announcement implying the natural-diamond industry is…less ethical and the impetus behind Pandora’s move to lab-grown diamonds, particularly given the inconsequential [quantity] of diamonds Pandora features in its collections, can have unintended but substantial consequences on communities in developing nations,” the groups said. “The industry organizations have called upon Pandora to support communities by correcting the record.”

Pandora used mined diamonds in about 50,000 of the 85 million pieces it created in 2020, it said.

Pandora was not immediately available for comment.

Source: DCLA

Pandora to Slash 180 Jobs in Restructuring

Pandora is embarking on a major streamlining process aimed at speeding up its ability to act on customer feedback, the jeweler said Wednesday.

The Danish company will close its three regional offices — management centers that oversee stores in specific parts of the world — to eliminate a layer between upper management and customers, it noted. It will cut 180 workers as a result.

“[This] brings our global headquarters closer to our local markets and consumers, and ensures that feedback from consumers can more quickly fuel new concept creations,” noted Pandora CEO Alexander Lacik. “The reorganization will reduce organizational complexity, enable Pandora to execute with more speed and agility, and add critical capabilities required to support growth.”

Pandora will group its market areas into 10 clusters, each of which will be headed by a general manager who is based in the largest market within that cluster. All general managers will report to a newly hired chief commercial officer, whose identity the company will disclose shortly.

The jeweler will also establish two global business units that will oversee all products, which it believes will offer a more consistent marketing message and consumer experience, it said. One unit will be responsible for core products, including its Moments collection, charms and collaborations, while the second will drive newer product categories and innovations. The units will report to chief marketing officer Carla Liuni.

Additionally, as part of the new restructuring, three regional presidents will step down from the executive team. The new system will take effect April 2.

Source: DCLA

Pandora to Slash 180 Jobs in Restructuring

Pandora is embarking on a major streamlining process aimed at speeding up its ability to act on customer feedback, the jeweler said Wednesday.

The Danish company will close its three regional offices — management centers that oversee stores in specific parts of the world — to eliminate a layer between upper management and customers, it noted. It will cut 180 workers as a result.

“[This] brings our global headquarters closer to our local markets and consumers, and ensures that feedback from consumers can more quickly fuel new concept creations,” noted Pandora CEO Alexander Lacik. “The reorganization will reduce organizational complexity, enable Pandora to execute with more speed and agility, and add critical capabilities required to support growth.”

Pandora will group its market areas into 10 clusters, each of which will be headed by a general manager who is based in the largest market within that cluster. All general managers will report to a newly hired chief commercial officer, whose identity the company will disclose shortly.

The jeweler will also establish two global business units that will oversee all products, which it believes will offer a more consistent marketing message and consumer experience, it said. One unit will be responsible for core products, including its Moments collection, charms and collaborations, while the second will drive newer product categories and innovations. The units will report to chief marketing officer Carla Liuni.

Additionally, as part of the new restructuring, three regional presidents will step down from the executive team. The new system will take effect April 2.

Source: DCLA

Pandora to Buy Back $75M of Jewelry

Pandora is set to repurchase DKK 500 million ($74.7 million) of unsold inventory from retailers that stock its products, the company said.

The Danish jeweler believes this will reduce the quantity of goods its clients keep in stock for long periods. The company plans to smelt and recycle the old jewelry to make new collections, a company spokesperson told Rapaport News Tuesday. The venture, which it will implement in select global markets, is part of a wider restructuring plan that will cost Pandora up to DKK 1.5 billion ($224.3 million).

Other features of the plan include supplying retailers with fewer goods in a bid to prevent buildup of excess inventory. Pandora will instead replenish clients’ stock with in-demand items when necessary, rather than providing them with too much product up front.

Pandora has struggled with disappointing sales, leading to the departure of the company’s CEO last August, as well as 1,900 job cuts this year.

Last week, the company announced a new partnership with television and film star Millie Bobby Brown as part of its efforts to connect with a younger audience.

Source: DCLA

Pandora to Buy Back $75M of Jewelry

Pandora is set to repurchase DKK 500 million ($74.7 million) of unsold inventory from retailers that stock its products, the company said.

The Danish jeweler believes this will reduce the quantity of goods its clients keep in stock for long periods. The company plans to smelt and recycle the old jewelry to make new collections, a company spokesperson told Rapaport News Tuesday. The venture, which it will implement in select global markets, is part of a wider restructuring plan that will cost Pandora up to DKK 1.5 billion ($224.3 million).

Other features of the plan include supplying retailers with fewer goods in a bid to prevent buildup of excess inventory. Pandora will instead replenish clients’ stock with in-demand items when necessary, rather than providing them with too much product up front.

Pandora has struggled with disappointing sales, leading to the departure of the company’s CEO last August, as well as 1,900 job cuts this year.

Last week, the company announced a new partnership with television and film star Millie Bobby Brown as part of its efforts to connect with a younger audience.

Source: DCLA

Pandora to Slash Nearly 400 Jobs

Pandora plans to lay off 397 employees after disappointing second quarter results and a weakened outlook for the rest of the year.

While sales grew 4% in local currencies to $748.2 million (DKK 4.82 billion) for the quarter, the retailer lowered its revenue guidance for the year to an increase of 4% to 7%, from its previous forecast of 7% to 10%. It also expects lower profit margins, after that measure declined in the second quarter, it said Monday. The company’s stock price was down 21% at press time Tuesday.

Streamlining the business will help Pandora’s financial performance by reducing complexity and shifting resources to strategic priorities such as digital and e-commerce sales, CEO Anders Colding Friis explained in a separate statement Tuesday. Pandora has nearly doubled in size in the past three years, with new organizational practices emerging in different parts of the company, the executive added. The changes will reduce costs by about $23.3 million (DKK 150 million) per year, the company said.

“The adjustments are…necessary to protect our profitability,” Colding Friis said. “Sadly, the changes mean that good employees will lose their jobs, and we are supporting them in the best possible way.”
Of the layoffs, 218 will be in Thailand, where Pandora employs 13,000 people, including 5,000 at a new manufacturing center it unveiled in June. The company’s global workforce numbers 27,000.

Pandora has suffered from weak demand for its products in the US, as well as competition from unauthorized traders in the Asia Pacific region. Last month, it said it had reduced retail prices in China to combat the grey market, in which other companies sell its products without a license.

Meanwhile, Pandora has appointed Sid Keswani as president for the Americas. Keswani is a former CEO of grocery store chain Fiesta Mart, and replaces Scott Burger, who left the company in January. He will begin on August 13, reporting directly to the CEO.

Pandora will release its full results for the second quarter on August 9.

Pandora to Slash Nearly 400 Jobs

Pandora plans to lay off 397 employees after disappointing second quarter results and a weakened outlook for the rest of the year.

While sales grew 4% in local currencies to $748.2 million (DKK 4.82 billion) for the quarter, the retailer lowered its revenue guidance for the year to an increase of 4% to 7%, from its previous forecast of 7% to 10%. It also expects lower profit margins, after that measure declined in the second quarter, it said Monday. The company’s stock price was down 21% at press time Tuesday.

Streamlining the business will help Pandora’s financial performance by reducing complexity and shifting resources to strategic priorities such as digital and e-commerce sales, CEO Anders Colding Friis explained in a separate statement Tuesday. Pandora has nearly doubled in size in the past three years, with new organizational practices emerging in different parts of the company, the executive added. The changes will reduce costs by about $23.3 million (DKK 150 million) per year, the company said.

“The adjustments are…necessary to protect our profitability,” Colding Friis said. “Sadly, the changes mean that good employees will lose their jobs, and we are supporting them in the best possible way.”
Of the layoffs, 218 will be in Thailand, where Pandora employs 13,000 people, including 5,000 at a new manufacturing center it unveiled in June. The company’s global workforce numbers 27,000.

Pandora has suffered from weak demand for its products in the US, as well as competition from unauthorized traders in the Asia Pacific region. Last month, it said it had reduced retail prices in China to combat the grey market, in which other companies sell its products without a license.

Meanwhile, Pandora has appointed Sid Keswani as president for the Americas. Keswani is a former CEO of grocery store chain Fiesta Mart, and replaces Scott Burger, who left the company in January. He will begin on August 13, reporting directly to the CEO.

Pandora will release its full results for the second quarter on August 9.