In the international context, the current news in Pandora is that its strategic planning to expand into China. It already has units in China and at present wants to expand across by increasing the number of point of sales units. From an international perspective, there are many questions raised for Pandora such as whether they are affordable for the average Chinese consumer. Yet another question arises with the strategies followed by Pandora. Pandora in its internationalization tries to follow centrally defined concepts. Will this help Pandora realize profits? There are questions of fake market culture in Asia too. Reports suggest that imitation goods might be preferred by segments of consumers (Simoni et al., 2001; Luo, 2004). Hence, an understanding of how this would threaten the company in China and other Asiatic segments is also an interesting question. International competition however is not new to Pandora. It has indeed faced many of these challenges in its earlier international expansions. Nevertheless, some of these challenges might be increased with respect to affordability in the Asian segment. Given this context, this research aims to understand how affordability would have an impact on the sales rate of Pandora. The research work makes an assessment of how fake or imitation jewellery could result in sales decline for Pandora in its expansion.
Pandora founded in the year 1982 with its headquarters in Copenhagen in Denmark. From its year of inception, the company has moved on to international waters whose employs are around 21,200 people worldwide. The majority of these ventures are in Gemopolis, Thailand, as this is the place of manufacture of Pandora’s products. The company is listed under the NASDAQ Copenhagen stock exchange in Denmark. As of the year 2016, Pandora reports revenue which is approximately 2.7 billion Euros.
The products of Pandora are sold direct to retail and also through franchises in more than a 100 countries. The design concepts are sold in some countries. The market finished products are sold in six continents. There are at 7,900 direct points of sale. Pandora owns around 2,100 concept stores. International organization, global organization and transnational organization are three types of organizations. Pandora falls under the international organization category as it has most of its assets centralized. The knowledge concept is derived mostly from the central units. Although the subsidiary units in other countries are expected to contribute to local capabilities in design and concept, the competencies are still centrally owned. This deters the creation of fake designs and concepts to a certain extent. Pandora has expanded into Australia, Europe, Americas, parts of Asia like China, India etc. It also has alliances with other countries. In addition, Pandora sells its products directly to customer through its online portal. As of 2014, Pandora plans to expand into China by introducing more stores to increase the number of stores in its overall international segment. Understanding the competitive advantages in international competitive context is hence significant for Pandora. Especially an understanding of affordability related challenges and challenges related to fake or imitations become necessary foe the international jewellery market is fast expanding in value (Technavio, 2017).