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Pandora Leads a Paradigm Shift Jewelers Cannot Ignore

Feb 14, 2012 5:08 PM   By Jeff Miller
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RAPAPORT... In Unity Marketing's latest "Luxury Tracking" survey, which the research group conducted in January 2012, jewelry brand Pandora emerged as the second-ranked luxury jewelry brand, trailing only  Tiffany & Co.   Nonetheless,  Unity's president Pam Danziger, said that many jewelry designers felt no impact from  Pandora's growing popularity and market reach.

"They may want to put their ears a little closer to the ground," Danziger said, "because Pandora is gaining on them and is poised to be a game-changer in the luxury jewelry industry." 
 
Unity Marketing found that Pandora's  design-your-own jewelry approach gives customers the ability to become part of the creation experience.  And each additional charm added to the piece over time can represent new moments and memories in that person's life. 

Pandora's approach dovetails nicely with the current economic climate and luxury consumer behavior in two ways, according to Unity Marketing. First, luxury consumers consistently report valuing "experience" over physical possessions when they make a purchase, so the Pandora brand fits that desire to commemorate a special experience.  Secondly, the unique nature of the pieces means that it is highly unlikely an affluent consumer will see her jewelry expression on the arm of another, concluded Danziger. 

"This is critical in this time of increasing class warfare and backlash against the rich, when an identifiable piece of luxury jewelry that obviously comes from an expensive brand may make a tone-deaf statement in a climate of continued economic uncertainty," she added. 

Pandora jewelry allows the personality of the wearer to be more important than the branding message, showing that it indeed the company understands its target consumers. Every luxury brand must do the same in order to be "truly competitive in a world in which being an identifiably affluent-oriented brand can be as much a liability as a benefit," according to Unity Marketing.

Tags: affluent, Consumers, Jeff Miller, Jewelry, luxury, Pandora, retail
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