The Pandora Effect

Today, we talk about Pandora. Yes, Pandora. The fad that was supposed to fizzle out after a couple of years. Unfortunately, Pandora is still around and it turned out to be the unwanted cousin of the jewelry industry who overstayed its welcome.

The jewelry industry was fine until the day Pandora knocked on its door. It's the cousin that we thought would disappear after its fifteen minutes. Luxury jewellers were polite to this new cousin, giving this brand a home in their shops despite the fact that it isn't even jewelry; it's merely an accessory.

Fast forward years later and Pandora is still here, opening more and more retail shops worldwide.

Pandora helped many retailers stay afloat during the tough economy facing the luxury industry in recent years. For that, I can appreciate the arrival of Pandora and the role it played in saving the future of many independent, family-owned retail operations.

What's sad about the role Pandora plays in the realm of the jewelry industry is that consumers are have accepted this accessory in replacement of a finely crafted piece of jewelry. Is this the future of jewelry? Fine jewellers are now finding themselves selling beads and charms.

I wrote a blog post about Pandora a couple years back not knowing it would be stronger than ever years later.

Trend Watch: Custom Creations

Of course these difficult economic times have affected all types of businesses. More particularly however, the jewellery industry has faced quite a crunch. Why? Because at a time like this, the first thing to get crossed off someone’s list of necessities are the luxuries. Say goodbye to the new diamond necklace you were dreaming of and say goodbye to its matching earrings as well.

Despite this reality, there is a bright light helping retailers hold on during these tough times. The gossip I’ve heard from various jewellery retailers is that their Christmas season wouldn’t have been as successful as it was if it wasn’t for the “bead craze” that has quickly saturated the industry.

What do I mean by ‘bead craze’? Well, back in the early 90s when I was a child, I had a collection of colourful beads and I would create various bracelets and necklaces for my friends and I. Today’s ‘bead craze’ employs that very same concept, except the ‘beads’ are no longer inexpensive pieces of plastic—they come in yellow gold, white gold or silver. And whereas the bracelets I’d make as a child probably cost about a dollar or two, these modern reincarnations can come with a $1500 price tag.

Pandora is a heavyweight in the bead craze. The concept behind Pandora Jewellery is that you begin by buying a starting piece—a very plain bracelet for example--, then you purchase fun little beads and charms to add to that plain bracelet. There are hundreds of different charms, so the overall theme you create with your bracelet will result in a totally custom and personalized product.

Think Apple for a second. “There’s an app for that.” Companies who manufacture these beads use the same philosophy. The result? “There’s a bead for that”.

It becomes more of a psychological game, or even an addiction, as the eventual goal is to purchase enough beads to dress that plain chain that goes full circle around your wrist. Allowing consumers to create an entirely customized piece of jewellery is what has attracted so many people. Furthermore, as each individual bead is pretty inexpensive in comparison with a larger piece of jewellery, consumers are bound to return for more. After some impulse shopping at the mall, would you feel better that you purchased two beads for about $35 each or that you put down $300 for a diamond ring?

Despite Pandora being the leader in the bead craze, other companies have also entered the market such as Silverado and Amore & Baci. In fact, the list does not end there as there are dozens of other companies and imitators who are jumping on board to capitalize on this hot trend. Buyer beware however, as it doesn’t take a fortune-teller to tell you that trends only last for a certain amount of time. Speaking of trends, I wonder what everyone did with their Zoppini bracelets? If you ever bought one, feel free to leave a comment and tell us when the last time you wore your beloved Zoppini was!