Pandora’s CEO has made intriguing comments about the importance of sustainability to his business.
Pandora is the world’s largest mass-market jewellery brand. In recent years, the company has repeatedly emphasised the importance of sustainable and environmentally friendly practices.
In a recent interview, CEO Alexander Lacik suggested that these factors, while still important in business, do not increase jewellery sales.
“[Environmental, social, and corporate governance] is a nice feature, and for the people who are interested, we have a good story to tell, but it’s not the driver of the business,” he told Fortune.
“When we talk about product choice, there are only two things that actually drive behaviour. You may claim that you do other things, but design is absolutely the most important aspect of your purchase decision on a product — and the second criterion is price.”
In February, Pandora confirmed that it would use exclusively recycled gold and silver in all products from the second half of this year onwards.
In 2021, the company launched its first exclusive lab-created diamond collection and announced plans to phase out natural diamonds from its product lines.
The company also plans to halve its greenhouse gas emissions by 2030 and become a net-zero business by 2040.
Despite the emphasis on sustainability for the company, Lacik confirmed it is not a point of appeal for customers.
“Women like bigger stones that’s the way the world works, whether we like it or not,” he joked.
“Customers — when it comes to the bridal engagement space — are opting for spending the same or similar amount of money, but for a significantly larger stone.”
He added: “I’ll be dead before somebody comes into my shops and says: ‘Can you show me your sustainable products? It’s just not in people’s minds when they’re shopping this category.”
Lacik’s statements support similiar findings of a retailer’s survey completed as part of Jeweller’s 2024 State of the Industry Report.
More than 200 retailers were asked the following question: My customers voice concerns about eco-friendly and sustainability issues.
Around 16 per cent answered ‘never‘, while more than 75 per cent of participants answered ‘occasionally’ or ‘rarely’.
On the other hand, fewer than 2 per cent of respondents stated ‘always’, with a further 5 per cent answering ‘very frequently.’
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