-: Headquartered in Copenhagen,
Pandora is the world's biggest jewelry brand
renowned for its customizable charm bracelets
and designer rings and necklaces.
The company markets its product in more than 100 countries
on six continents.
Pandora had achieved impressive revenue growth rates.
But its like-for-like sales began contracting fast
starting 2017 and turned negative in 2018.
Leaders decided to engineer a turnaround
and asked BCG to help craft
and execute a large-scale transformation program in 2018
called Program NOW.
-: Be it online or offline,
there were just less people coming to us.
And the reason being that our brand just became irrelevant.
So I think the foundational piece was the analysis
that essentially, it created the baseline for this program,
which we called Program NOW.
And this consists of three big themes.
One which was around getting the heat back into the brand.
The second piece was around creating better access to people
to kind of connect with our brand.
And then the third piece was a big cost reset exercise,
which essentially was funding
the activities in the previous two.
We've taken out something equivalent to
6% of our revenue base in cost.
We've taken that out,
but we actually reinvested all of it and then some.
-: So how did BCG help design and implement Program NOW?
First of all, we designed a two-year end-to-
end transformation program together with management.
It comprises seven major work streams
encompassing all parts of the company, including:
reinventing the consumer experience from store to online,
launching a new website to improve brand access,
resetting the commercial strategy,
including reconfiguring promotion schedules,
designing an end-to-end merchandising process
to improve like-for-like sales,
and finally, a comprehensive cost program
to free up funds for the program.
We also designed a transformation management office
to keep track of the program at all times.
We had regular check-ins with the CEO and the CFO.
Secondly, we worked very closely
with the C-suite executives,
co-developing initiatives
and ensuring buy-in at all times.
Our team on the ground worked shoulder to shoulder
with the Pandorans, ensuring ownership of everything we did.
And finally, we drew on the full strength of BCG,
including experts from all over the world
and from BCG Platinion and BCG Gamma.
-: From a financial standpoint,
we now have a business that's healthy.
So we've gone from a very shaky, declining situation
to now something which is stable and rock-solid
and is far more predictable.
We've also built a capability.
So one thing is you can take some strong medicine,
but you also need to kind of get fit for the future.
And I think we've spent a lot of time on doing that.
We've established new values,
and I think values are a key component
of creating a company culture.
We are closer to the customer.
(gentle music)