Sparkling future beckons fashion jewelry

Customers queue for access to a Pandora A/S jewelry store in Prague, Czech Republic, Dec 29, 2015.[Photo/VCG]

Although the company refuses to disclose annual revenues, it hints that the turnover generated in China amounts to a couple of billion yuan. This year, the company expects to grow in high single digits.

Because Chinese consumers still have a preference for precious metals and stones, Swarovski decided to launch an exclusive line of fine jewelry in 2012 specifically designed for the Chinese market.

The collection of fine jewelry combined the traditional designs of the brand with the use of precious stones, producing 18-karat gold diamond swans necklaces and amethyst hearts.

"We thought that it would be a smart strategic move for us to enter that market," said Francis. "Both fashion jewelry and fine jewelry are growing at similar speeds here, which means that in the last years we have not seen fine jewelry losing ground to fashion jewelry."

Danish silver jewelry manufacturer Pandora entered the Chinese market in 2010 by signing franchise agreements with three different local partners in Harbin, Shanghai and Shenzhen.

It was only six months ago when the company changed its business strategy to be more directly involved in the stores and start investing in marketing campaigns.

"We are struggling to get the business foundation to operate across China," said Kenneth Madsen, president of Pandora Asia. "We want to grow quite fast at the moment, but we need a controlled expansion strategy."