Pandora Considers Restructuring Its Struggling China Business Amid Sales Decline

/in /tarafından

Danish jewelry giant Pandora is exploring options to restructure its operations in China after years of steep declines in both online and offline sales, according to sources familiar with the matter. The company is reportedly in talks with China-based investment funds and e-commerce partners about potentially licensing its brand and assets, including existing inventory, for a period of five years.

Pandora, the world’s largest jeweler by volume, has faced significant challenges in China, the world’s second-largest economy. Post-pandemic consumer slowdown, a widespread property market crisis, and intense competition from local, digitally savvy brands in the crowded e-commerce space have all taken a toll. Additionally, Chinese consumers have shown a growing preference for gold and higher-value jewelry over Pandora’s offerings.

In a statement to Reuters, Pandora acknowledged the need to reposition its brand in China and said it was working on a turnaround that “will take time.” The company reaffirmed its commitment to the Chinese market but did not comment directly on possible restructuring plans.

Financial filings reveal Pandora’s revenue in China fell nearly 80% to 416 million Danish crowns ($65 million) in 2024, down from 1.97 billion crowns in 2019. The country’s contribution to Pandora’s overall revenue shrank from about 11% to roughly 1% during that period. The business has seen considerable leadership turnover, with three managing directors since 2022. The current managing director, Thomas Knudsen, began in January, shortly before Pandora announced plans to close 50 stores in China this year.

Experts warn that finding a suitable partner or stakeholder for Pandora’s China business may be difficult given the ongoing market headwinds and weak performance. Jonathan Yan, a principal at consulting firm Roland Berger in Shanghai, said financial investors are unlikely to be interested, though e-commerce firms focused on higher-margin brand ownership might consider a deal.

The restructuring model being considered could resemble Gap’s 2022 sale of its China business to Baozun, a leading Chinese e-commerce partner, for $40 million to $50 million. The potential value of a Pandora deal remains unclear.

Sources indicate that Pandora’s e-commerce sales in China have declined more sharply than in physical stores. An acquisition by a local operator with expertise in Chinese e-commerce could offer a better chance at recovery, though any turnaround effort is expected to be costly.

Yan noted, “They will need to burn money and have a very innovative approach, and even then it won’t be easy.”

Irish Data Regulator Launches New Inquiry into TikTok Over Data Storage in China

/in /tarafından

Ireland’s Data Protection Commission (DPC) has opened a fresh inquiry into TikTok concerning the storage of European users’ data on servers in China. This follows TikTok’s April disclosure that some data had been temporarily stored on Chinese servers, an issue not addressed in the regulator’s earlier investigation.

TikTok, owned by China’s ByteDance, was fined €530 million ($620 million) in May by the Irish regulator over concerns about its handling of European user data, some of which was reportedly accessed remotely by employees in China.

As TikTok’s lead regulator in the EU—since the company’s European headquarters is based in Ireland—the DPC will now specifically focus on the China data storage issue. Previously, TikTok had repeatedly assured the regulator over a four-year probe that it did not store EU data in China. However, in April, the company revealed it had found that a small amount of data was stored in China for about two months before being deleted.

A TikTok spokesperson said the company identified the issue internally, promptly deleted the limited data involved, and informed the DPC. The spokesperson added, “Our proactive report to the DPC underscores our commitment to transparency and data security.”

TikTok is currently appealing the May fine, warning that the ruling could set a broad precedent affecting companies and industries operating globally across Europe.

EU’s Top Court Adviser Supports Italy in Meta Platforms Copyright Dispute

/in /tarafından

An adviser to the European Union’s highest court stated on Thursday that EU member states have the right to implement their own measures to strengthen the position of news publishers in negotiations with large online platforms, provided these do not infringe on freedom of contract.

The dispute under review by the Court of Justice of the European Union (CJEU) involves Meta Platforms, owner of Facebook, and Italy’s communications regulator AGCOM. The case centers on a fee that Meta must pay Italian publishers for using snippets of their news articles.

Meta challenged whether national measures like Italy’s are compatible with rights granted to publishers under EU copyright law. However, CJEU Advocate General Maciej Szpunar argued that EU copyright rules aim not only to protect publishers from unpaid use of their content but also to ensure they receive a fair share of revenue generated by platforms.

Szpunar emphasized the public interest behind these rules, describing them as efforts to support the economic viability of the press, which he called “a key pillar of democracy.”

Meta said it will await the court’s final ruling but expressed concerns that Italy’s implementation of the directive undermines the goal of copyright harmonization in Europe. A Meta spokesperson warned that inconsistent legislation can hinder innovation and create uncertainty.

The adviser also noted that Italy’s regulator must respect contractual freedom. Szpunar said AGCOM’s powers—such as setting remuneration benchmarks, resolving disputes, and monitoring information—are acceptable if they serve only to assist and do not restrict the parties’ freedom to contract.

The CJEU is expected to issue its decision in the coming months, and it often aligns with the advocate-general’s recommendations.