Pandora cuts prices in China to fight the parallel market

The Danish jewelry brand Pandora announced a plan to reduce its retail prices in China after seeing the increase in sales of its products on the "parallel market".

The company said that the price reduction, which will take effect from Thursday, will apply to most of your jewelry collections, with an average adjustment of 15%. The measure will bring Pandora's prices in China closer to those of other markets.

But the main reason for the price decline is an increase in parallel market sales, or gray market. Unlike the black market, gray market products are genuine, but they are sold at a discount because they were bought unofficially without the permission of the brand owner.

This means that Pandora's jewelry is sold outside the sales channels. authorized distribution by unauthorized retailers, something that tends to annoy growing brands as it can hurt their image.

In China, Pandora has recorded two- and three-digit revenue growth since its launch in 2010. The country accounted for 12% of the company's total sales in the first quarter; however, Pandora warned of a slowdown in May.

Kenneth Madsen, President of Pacific Region of Pandora, commented, "This price reduction in our jewelry badortment is one of the elements of our strategic program to limit parallel trade of our products in China and continue to improve our customer experience in the world's largest jewelry market. "

Price reductions will apply in Pandora's 170 concept stores in China, as well as in their own e-commerce and flagship store Tmall