Pandora puts 150 million dollars into a Vietnam plant as US jewellery demand cools
Weak US consumer confidence is pressuring Pandora's jewellery sales in what had been a main growth market for the Danish group. The company is investing about 150 million dollars in a plant in Ho Chi Minh City that will cover roughly one third of total output by 2030, with capacity for 60 million pieces a year. Pandora is also tilting sales exposure toward Japan and the rest of Asia and switching from silver to platinum plating.
Softer US spending weighs on affordable luxury
Weak consumer confidence in the United States is pressuring Pandora's jewellery sales in a market that until recently acted as a main growth engine for the Danish company, according to the Greek business outlet sbctv.gr. Persistent inflation, fuel prices and geopolitical uncertainty have combined to make household spending on non-essential goods far more selective.
The company finds that US consumption has settled at a lower level, particularly among middle and lower income households, which form a critical customer base for affordable jewellery. That does not amount to a collapse in demand but to tighter purchasing decisions, with consumers postponing or scaling back gift purchases and personal luxury. For a brand built on accessible price points, the effect shows up in basket size and purchase frequency rather than in a loss of customers.
A 150 million dollar plant in Ho Chi Minh City
Pandora is investing in a new production facility in Ho Chi Minh City, a commitment of about 150 million dollars that ends the company's reliance on Thailand as its single manufacturing base and moves it toward a more polycentric supply chain. When the site reaches full capacity by 2030 it will account for roughly one third of total output, with capability for 60 million pieces of jewellery a year.
That one third share implies the bulk of production stays outside Vietnam once the ramp up is complete, leaving the group with two manufacturing centres instead of one. The practical gain is optionality: a second large site gives Pandora a lever on volumes, lead times and tariff exposure, and spreads operational risk that previously sat entirely in a single country.
Vietnam combines a stable macroeconomic environment, industrial infrastructure and established expertise in jewellery making, sbctv.gr reports, which makes it a preferred hub at a time of geo-economic restructuring across Asia. The decision to run the plant exclusively on electricity from renewable sources also places the investment within the growing pressure for sustainable supply chains, in particular from European institutional investors.
Geographic exposure tilts toward Asia
Alongside the manufacturing shift, Pandora is redeploying its geographic exposure and strengthening its presence in markets with stronger momentum, including Japan and Asia more broadly. The move works both as a hedge against a prolonged period of subdued consumption in the United States and as an investment in regions with expanding middle classes.
Prices, margins and inventories down the chain
The company is also moving from silver to platinum plating in order to limit its exposure to swings in metal prices. Combined with the build up of Asian production, that change can affect final retail prices, profit margins and the inventory policy of retail networks, including in Greece, sbctv.gr notes.
For jewellers and importers, the strategy confirms two trends. The global jewellery industry is relocating production to lower cost Asian hubs, and large groups are shielding themselves against volatility in both US demand and precious metal prices. Retail markets will need to adjust collections, pricing and supply contracts in good time to stay competitive in an environment where affordable luxury depends increasingly on supply chain flexibility and resilience to international swings.
