Economic Insights

Carrera y Carrera Celebrates its 130th Anniversary

The multinational jewelry, of Spanish origin, has looked for new markets in recent times and has modernized its management.

Abel Amón. 19/11/2015

On 29 October at the Museum of Modern Art “Garash” in Gorky Park ,it was projected a film starring and directed by the famous Russian actress based in the 130 year history of the company Renata Litvinova film that was founded in Madrid by of Saturio Esteban Carrera. This film “Event in Madrid with Mrs. K.” was the central point of the celebrations of so marked date. Renata Litvinova is an ambassador for the brand Carrera y Carrera.

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Carrera y Carrera meet 130 years of fine jewelery made in Spain

Parallel to this film, I was opened in the famous GUM department store in Moscow (the one located in the Red Square) is an exhibition that aims to show elements that have characterized the peculiar history of the company.

In the central hall of the GUM, it is a replica of the first workshop opened on Calle Santa Isabel, Saturio Carrera, a goldsmith very committed to the modern art of the time it used to often meet with artists of that time. The exhibition recreates furniture, clothing, environment etc  of the founding years of Carrera y Carrera and of course jewelry representative of the workshop. It will be open until November 30, 2015.

Así era el primer taller de Carrera y Carrera
That was the first workshop of Carrera y Carrera in Madrid

A long history
Carrera y Carrera founded in 1885, the workshop of José Esteban Carrera began to gain fame for its special carved gemstone at your local Madrid Calle Santa Isabel. Years later, relatives take over and create the Carrera y Carrera brand. It is in the 50s of last century when they begin the most important commissions for the house. So when King Baudouin of Belgium married Fabiola de Mora y Aragon in 1960, Carrera y Carrera is responsible for conducting the bridal tiara.

The orders continue to come in the 70s, starting an internationalization process that culminated in 1999 when a group of businessmen led by our colleague in The Luxonomist, María Eugenia Girón and Louis Urvois join the organization chart in order to modernize the brand for new tastes and push further its sales outside Europe.

Anillo de la colección Universo. Aquí puedes comprarlo
Ring Universe collection. Click to buy

Sonia Ruiz then took over the design department, emerging as fruit collections like dancing butterflies and Taj Mahal. In late 2001, the Spanish company Lladró invested 15 million euros in the company, in 2006 acquired 100% of the shares. In late 2007, Carrera y Carrera was present in over 26 countries, with 19 branches and more than 250 outlets boutiques. Its main markets at that time were Russia and Japan, very different each other. In 2010, this prestigious company was bought by a Russian investor group, reaching its turnover in the year to 20 million euros, 22 million in 2011 and over 24 million in 2012.

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Savia ring model with two squirrels. Buy here

Present in over 40 countries.
Currently, the company is represented in 40 countries and has 279 outlets. Has two flagship boutiques in Madrid and Barcelona, ​​and 10 own stores, while the rest are associated, as the five franchises in Russia, Ukraine, Kazakhstan and the United Arab Emirates. To this they join the 19 points of its duty-free shops in individual airports. In his workshop in Madrid, Carrera y Carrera is considered as one of the 30 brands most prestigious jewelers, whose international focus making it exported 80% of its sales, holding fast in strategic markets like the US, Japan, Russia and China and using in its advertising celebrities such as Demi Moore Olivia Palermo or campaigns.

Olivia Palermo ha sido imagen de la firma Carrera y Carrera
Olivia Palermo has been the face of the firm Carrera y Carrera

Carrera y Carrera SA ended 2013 with assets  recorded at a value of € 41 million and sales of € 26 million of assets, showing an EBITDA of EUR 3.4 million All these indicators, make you be a little below the average of the companies in the sector, something the company tries to compensate with increased internalization.

Comparing sales data with previous years we see exercises on relative stability, but we do not know sales figures of 2014 and 2015 is no doubt that the Russian crisis has affected both the turnover of its stores in Russia as those of other shops for example in Spain they used to have many sales of Russian tourists.

Colgante 'Love' de Carrera y Carrera. Haz clic para comprarlo
Pendant ‘Love’ Carrera y Carrera. Click to buy

New strategy in new markets.
To diversify its business and to avoid these lower sales due to the Russian crisis and stagnation in developed countries, Carrera y Carrera, it has opened new stores in countries like the Philippines and Thailand. Soon will enter Canada with a first store in Toronto, which will open in the last weeks of 2015. Think also continue its extension in Russia and through multi-channel, also in France and Germany. Not even stop for a presence in the Middle East with plans to continue with its expansion after opening in Qatar, Bahrain and Saudi Arabia in 2014. The company invests heavily in communication in China, as in many of its locations throughout the world, Chinese tourists account for nearly half of sales.

Disclosure: The medium is not responsible for the views expressed in the article. The text was written freely expressing ideas, without receiving any compensation. The author has no business relationship with any of the companies whose shares are listed in this article.


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