Pandora Considers Brand Licensing as China Sales Plunge Nearly 80%

Danish jewellery maker Pandora (PNDORA.CO), the world’s largest jewellery brand by volume, is weighing significant changes to its China strategy following years of steep revenue declines in the world’s largest jewellery market. According to two people with direct knowledge of the matter, the company is in talks with China-based private equity funds and major e-commerce operators about potentially licensing its brand and local assets, including inventory, for a period of up to five years.

The move would mark a major shift for Pandora, which has faced headwinds in China since the pandemic. According to company filings, Pandora’s revenue from China has fallen by almost 80%, dropping from 1.97 billion Danish crowns (approx. $309 million) in 2019 to just 416 million crowns ($65.1 million) in 2024. As a result, China’s contribution to Pandora’s global sales has plummeted from around 11% to just 1% over the same period (Pandora Annual Report, 2024).

Pandora acknowledged the need for a turnaround but did not confirm details of any licensing talks. In a statement to Reuters, the company said it remains “fully committed” to China and recognises that repositioning the brand will take time. The firm has also struggled to retain leadership in the region, having appointed three China managing directors since 2022; the current head, Thomas Knudsen, joined in January 2024. Shortly afterward, Pandora announced plans to close 50 physical stores in China this year, further shrinking its retail footprint.

Industry experts highlight that the company’s difficulties go beyond the post-pandemic spending slowdown. A growing preference among Chinese consumers for gold and higher-value jewellery has hurt demand for Pandora’s silver-based, charm-focused products. In addition, the company faces aggressive competition from local, digital-first brands that are adept at navigating China’s crowded online marketplace.

Jonathan Yan, Principal at consultancy Roland Berger in Shanghai, noted that attracting investors could prove challenging given Pandora’s sustained underperformance. “I don’t think financial investors are going to be interested in this asset,” Yan said, adding that some large e-commerce operators might consider a deal if they see an opportunity to expand higher-margin branded offerings.

A comparable precedent is the 2022 acquisition of Gap’s China business by Chinese e-commerce service provider Baozun (9991.HK) for approximately $40–$50 million, which enabled Gap to exit direct operations while preserving brand presence through a local partner with digital expertise.

Pandora’s e-commerce business in China has reportedly seen steeper sales declines than its physical retail stores, raising the stakes for any potential buyer to execute an effective digital turnaround. “They will need to burn money and have a very innovative approach, and even then it won’t be easy,” Yan added.

While the company has yet to determine the value of a potential licensing deal, the stakes are clear: for Pandora, finding the right partner could be critical to rebuilding its presence in a market that still accounts for more than 30% of global jewellery consumption, according to Statista’s 2024 industry report.