Pandora Production Co, one of the world's leading jewellery makers, is committed to investing a further 2.62 billion baht in Thailand during 2018-22 to support global business growth.
Nils Helander, the company's senior vice-president for manufacturing and managing director, said the spending will go largely to the second phase of the new production facility in Lamphun province, where the company started operations last March.
A portion will be spent on the company's AAA 20,000-square-metre crafting facility in Bangkok, which will have its grand opening in March, as well as on renovating the existing facility at the Gemopolis Industrial Estate in Bangkok.
The Gemopolis upgrade will yield production of more than 200 million pieces a year, up from 117 million pieces of hand-finished jewellery last year.
"Thailand is the only production base for Pandora worldwide because of unique craftsmanship," Mr Helander said. "Apart from production capacity expansion, Pandora is also committed to expanding retail business in Thailand via Thanachira Group, the authorised distributor of Pandora in Thailand."
Although the market size of Pandora remains relatively small compared with other countries, Thailand has huge potential, Mr Helander said, adding that Pandora in Thailand has the most consistent growth in Asia-Pacific.
Pandora sales in Thailand are expected to rise to 1.2 billion baht by 2020 from 700 million baht last year. Pandora has 29 stores in Thailand, with five new stores to open each year.
Mr Helander said the continued investment in Thailand is to support the company's global strategy that aims to increase global revenue by 7-10% annually during 2018-22.
Pandora's global revenue amounted to 114 billion baht in 2017, up 15% from 2016.
The future growth target will be driven mainly by Asia, the fastest-growing market. Some 21% of Pandora revenue now comes from Asia, with sales from the region expected to contribution 30% within the next 3-4 years.
The company sells to more than 100 countries worldwide via its own Pandora concept stores and 7,700 points of sale globally.
According to Mr Helander, Pandora's future growth will be a result of various business strategies.
The company will continue to drive growth in the charms and bracelets categories while boosting growth in the rings, earrings, necklaces and pendants segments.
Pandora aims to raise sales of rings, earrings, necklaces and pendants to about 50% of total revenue by 2022, up from the current 25%.
At least one new innovative jewellery concept will be launched to the market per year, and the company will increase the number of annual collections from seven to 10.
Due to changing consumer behaviour, the company will double its digital marketing budget to 60% of the total marketing budget in 2022, up from 30% last year.
In addition, the company will offer omni-channels as an alternative for customers. The company is set to open 200 concept stores a year globally for the next five years (2018-22).
This will bring the total number of Pandora concept stores to 3,450 stores by 2022. China and India are among the priority markets.
In 2022, two-thirds of the concept stores will be owned and operated by Pandora. Moreover, the company also plans to open more e-stores beyond the current 13 worldwide, including in the US and Britain.
The company expects about 15% of revenue to come from online business within five years.