The Announcement of Brand Closure Was a Brilliant Promotion of Rebranding

When, at the end of her studies at the Faculty of Law in 2010, she started making her own jewelry from her mother’s old pearls and pendants, Katarina Radnić Zmazek had no idea that one day she would have a highly recognizable brand in the domestic market.

– My brand did not originate from an idea but from a hobby that I tried to use to pass the time or fill it creatively while I was studying, and that was a time when social media was just starting in the sense that you could advertise and publish your own content through them. There were no followers, there were no business profiles like we see today, but it looked like this back then: you make something, take a photo with your phone, post it – and that’s it. There were no likes, just comments – recalled Radnić Zmazek, whose hobby was then called Perleraj by Katarina R.

By the end of her studies, this future entrepreneur was already engaged in law but also in a fashion brand while simultaneously developing her Perleraj. However, at one point, she had to draw the line, after which the decision was made: law was not the right path for her.

– Although I passed the bar exam, I realized that law would not be my life path and what I would do. I was in it, but it just wasn’t it. That was the end of the story and my work in another brand, and I focused all my attention on Perleraj, for which I decided to find a trademark, but also a catchier name – says Radnić Zmazek, who then created the brand Cloud&Co, although the company name remained Perleraj.

‘Invisible’ Unicorn

The cloud, she notes, already existed as a trademark, which highlighted her jewelry pieces to be uniform and different in the market. Formally, Katarina Radnić Zmazek became an entrepreneur and founded the company in 2012. However, even though she moved away from law, she remained in the office where she worked as a lawyer, which is today the headquarters of Perleraj.

Perleraj has 15 employees and generated 1.18 million euros in revenue last year, which is an increase of 17.08 percent compared to the previous year, and operated with a net profit of 245,735 euros, which is a decrease of 1.29 percent compared to 2023.

This company grows year by year, and soon it will move to a larger space in Zagreb, which also means an increase in production, which today varies from piece to piece, so some is in-house, and some is outsourced. The bestseller or unicorn, as the brand’s founder called it, is definitely the so-called invisible necklace that made Cloud&Co famous. This type of necklace has a continuous demand and is in constant supply, while some pieces are changed, innovated, and repaired.

– Some pieces we designed were realized as prototypes, and we still work according to them today, just changing their colors, pendants, and so on. However, our offer is mostly stable because we concluded that it makes no sense to change what is good. Some things, for example, were designed seven years ago and are still selling and are successful. We are particularly proud of that invisible necklace, which is an absolute unicorn in every way. It is relatively easy to make, offers many possibilities, people love it, choose it for gifts, and are thrilled with it – explains Radnić Zmazek.

Reverse Creative Process

As she tells us, she is not good at drawing, so everything she imagines she must also create and see if it works or not. She often adds that when she designed something, she would describe the piece she wanted, and someone else would draw it.

– I also know how to take existing things and rework them to see how they will function. I don’t have a typical design process from drawing to the final product. It would probably be easier for me to make something out of clay than to draw. That’s why I have this imposter-sindrom that I am not a designer because I don’t know how to draw. So, in all of this, I see myself as solving a problem, not as designing – explains Radnić Zmazek.

Whether she knew how to draw or not, success is there, and what she and her employees do not produce in Zagreb is made abroad, specifically in Italy and Poland, as they exceed the capabilities that the company has in Croatia.

– We don’t have our own workshop, although I went through that part of the education. So we had to be more economical because when you have 15 employees, you don’t have time to do one thing at a time. Of course, it all depends on the product line. There are pieces that, when we receive parts from suppliers and which are made abroad, we work on in our office. And again, we have lines where we send designs to factories, and we receive them finished and ready for sale – explains Radnić Zmazek, adding that they produce the best-selling pieces, such as the invisible necklace, in-house.

Regarding materials, Cloud&Co uses silver, gold-plated silver, steel, and semi-precious stones, which come from all over the world, from Poland and Italy to India and China, so it is no surprise that their procurement prices have risen in recent years, and accordingly, they had to change their prices as well.

Struggles with Prices

– I have spent a lot of time arguing why not to raise certain prices because it was very important to me that we remain loyal to customers both during the introduction of the euro and during inflation. Prices have risen, but I still strive to keep them competitive – notes Radnić Zmazek.

However, the most challenging part for her in the beginning was learning to ‘set up a company’. Despite her legal background, Radnić Zmazek learned that theory and practice often deviate from each other. With experience, she overcame that initial struggle, and the challenges became somewhat more enjoyable.

– Over time, it became challenging for me to find people who would work. I was a one-man band for a long time, and finding the right people was a long, interesting, and challenging process, but it led me to the point where today I can say for certain things ‘I don’t deal with that’ – she tells us with a smile, noting that today she considers management and entrepreneurship to be her biggest challenge, while the most beautiful part of the job remains the creative one.

Everything Came Naturally

And while she recalls her fifteen-year journey from the very beginnings of Perleraj from her room to the Cloud&Co brand in an office in the center of Zagreb, Radnić Zmazek emphasizes that the crucial moment, or turning point in her business, was precisely the rebranding.

– I knew I wanted to carry out a rebranding, but I didn’t know how. By chance, I met a girl who was involved in campaigns, and she devised a plan for us to come out with the message on social media ‘In 14 days, Perleraj will no longer exist’. That was one of the most brilliant marketing campaigns for me and it sparked numerous reactions. People thought we were shutting down, disappearing from the market, but that was just the beginning of a 14-day countdown during which we marked our beginnings every day; all the campaigns we did, all the partners… After those 14 days, we launched the Cloud&Co brand, and everything started over. It was an explosion that changed everything – recalls Radnić Zmazek.

But that is not the only turning point for the brand’s business. The second crucial moment was the opening of the store in Zagreb in 2020. This store, emphasizes the entrepreneur, at the very least brought recognition, as her jewelry is now worn by children and adults of all ages.

– We fit nicely into the market. Or stood out. I don’t know. I don’t know if we are anything or if we are commercial, but whatever we are, we are here and we are known. I see us as some kind of phenomenon. That’s why, for me, the question of how I came up with the idea to start a brand is extremely strange because it all came naturally. I did what I love as a customer. I love value for money. I love that something looks better for the amount I pay, that it has emotion and content, and I think we have that because each of us here brings something of their own into that product – explains Radnić Zmazek.

After the store in Zagreb, a store in Dubrovnik followed, which was opened by a Cloud&Co employee who moved to that city. The company, says its founder, has a long-term plan for franchising, and Dubrovnik was a trial or experiment that is still ongoing.

Open to Collaboration

– During the pandemic, spaces in Dubrovnik began to become available, and that was interesting to us. Having a store in Dubrovnik is somehow a matter of prestige. I see that we are also establishing ourselves there. We realized that our locals are still the most important customers – notes Radnić Zmazek, adding that her brand became famous through word of mouth among domestic consumers.

– Because of those invisible necklaces, our earrings, and some other pieces, everyone recognizes us, and I see them everywhere. I can watch the news or some Croatian show and then see my piece of jewelry on someone. I get goosebumps when I see something like that in a tram, restaurant… everywhere. It was a process that took time; people buy our jewelry for gifts, but also for themselves because it is subtle, yet it invites you to ask ‘what is that’ – emphasizes Radnić Zmazek.

Despite the fact that this entrepreneur started her journey on Facebook and conducts numerous digital campaigns, the largest source of revenue for Cloud&Co is definitely the store in Zagreb. However, there are plans for continued digital expansion, from fitting into digital algorithms, additional campaigns to creating a loyalty application. Moreover, the main goal is franchising.

– Currently, Split is interesting. We are troubled by the fact that when opening stores, we are pushed into shopping centers. I don’t like that, but we will see because we have to think about business indicators, about everything. We are also looking at some European metropolises, but it all depends on how we will arrange the franchise and the offer and what people will say about it, how they will react. We have indicators in Zagreb, we have been operating there for five years, and we have some formula. We are open to all collaborations, with everyone, but, of course, under certain conditions and rules – concludes Radnić Zmazek, whose focus remains on building the community that is being created around the Cloud&Co brand and which has helped her get to where she is today.