Lisa and Jennifer Shigetomi started their business by cold-calling on Toronto retailers. Today, stores on both sides of the border carry Matsu jewellery. Photo by Paul Chmielowiec

Part 5 of 5

By Jacquie De Almeida

Long considered a less-than-precious metal, silver has gained greater acceptance among designers and consumers alike, with more designs these days including diamonds, the epitome of luxury. Changing with the times is critical to keeping a brand and business relevant, and if interest in a particular product is there, making adjustments to meet a growing market is key. While traditionalists may argue pairing silver with diamonds devalues the stone, Jennifer Shigetomi of Matsu Jewellery in Toronto notes silver’s 80 per cent price increase last year now puts it in a different category.

“People see silver differently now because it’s not the throwaway metal it used to be,” she says. “And with the price of gold being so high, people are buying silver wedding bands instead of gold and they want diamonds.”

If the metal remains pricey, Jennifer says this may force companies producing lower-end pieces to go into base metals, resulting in an influx of more mid- to high-end silver jewellery. Higher-end product, minus the budget-busting price tag of gold, would also help meet price point demand of an affluent customer base.

So what’s the secret to their success? Part of it is keeping costs down. Matsu is located two doors down a side street off Yonge. Its location puts it in the heart of a trendy shopping neighbourhood, without the high-rent cost of being on a main street. In addition to traditional advertising in magazines and newspapers like Toronto Life, Post City Magazine, and The Town Crier, Jennifer’s sister and business partner, Lisa, says participating in events like the One of a Kind Show go a long way to establishing a following. “We get an incredible amount of follow up from that show,” she notes. “A lot of people see us there and may not necessarily buy anything, but will come see us after the show. It’s advertising for our store.”

Creating a solid foundation from the very beginning of a designer’s career is also critical. Having been there herself, Jennifer says pricing is paramount to making inroads into an industry that is highly competitive. “Price yourself for where you want to be, not where you are,” she says, listing incidentals like insurance, rent, and payroll that ought to be included when pricing product. “Do this even when working from home. This is a huge pitfall for young designers just starting out.”

‘Wave’ cufflinks in sterling silver. Photo by Paul Chmielowiec.

Part 4 of 5

By Jacquie De Almeida

While most would agree the Great Recession hurt the luxury industry overall, it did help boost certain areas, sterling silver being one of them. Skyrocketing gold prices created a new market for higher-end silver jewellery, with stores that had never carried the metal before doing an about-face. As with most high-end product, the quality of a hand-made piece is something consumers appreciate, even when the metal in question is silver. And they’re willing to pay for it.

Although the recession taught retailers to offer deep discounting to appease cost-conscious consumers who learned to seek out sales, Matsu Jewellery in Toronto has taken a different approach. Rather than putting jewellery on sale, the sisters organize customer-appreciation events for existing clients, allowing them to purchase jewellery at a discount. The tactic helps cultivate a loyal customer base.

Summer artists’ series events help do the same. Setting up a tent outside the store, store owners Jennifer and Lisa Shigetomi invited different jewellers to show their work. Local businesses also participated like the patisserie next door that provided free coffee. Jennifer says she was surprised by the response.

“We were amazed at how many people came in the store that had never done so before,” she notes. “The tents drew people in and created a festive air. We expected the jewellery we sold outside would be lower-end, but it wasn’t. Pieces that cost more than $100 were selling on the sidewalk.”

Jennifer Shigetomi at the bench. Photo by Paul Chmielowiec.

Part 3 of 5

By Jacquie De Almeida

Like many designers starting out, Jennifer Shigetomi of Matsu Jewellery in Toronto says consignment was not her preference in the beginning when it came to opening accounts. However, she notes that for up-and-coming artists, it can help get them established. Her advice for securing a sale, however, is to prepare a few full collections.

“You want to make yourself look bigger than you are and create a good first impression,” she explains. “They want to know you’re serious and are going to be around. A store feels much more secure to buy from you when they have lots of choices. If they’re going to commit to your designs, stores don’t want to bother with people who have a small grouping. It’s a lot of paperwork to bring in a new designer and track the work and they want to make sure you have enough to always supply their case.”

She offers the same advice given to her by a fellow jeweller when she was starting out—create a full line of different price points. This should comprise a showpiece necklace and bracelet, as well as a scaled-down mid-point necklace. A very simplified version of the mid-point necklace rounds things out with earrings to match.

“Stores won’t necessarily buy the whole collection, but they will want to see it,” Jennifer notes, adding showpieces help attract consumers to the lower price points around them.

As a retailer/wholesaler/buyer, the sisters have a unique perspective on the importance of forging and maintaining strong relationships within the jewellery industry.

“We’re very conscientious and diligent about customers calling us,” notes Lisa, explaining out-of-town consumers often call the store to purchase jewellery direct. “We really try to make a conscientious effort to support our dealers. It’s a relationship that we’ve nurtured and for the sake of a retail sale, you’re going to ruin years of a good relationship? Integrity is a very important thing, especially in this industry. Everybody knows everybody else. You have to represent yourself well.”