The silver way: Daniel Espinosa showed Mexican jewelers why design is essential to conquering foreign markets.

ON THE LIST of the top entrepreneurs, a jeweler might not be the first to come to mind. But in Mexico, Daniel Espinosa tops the list. As he grew up in Taxco, Guerrero, Mexico's leading silver producing town, working with silver was handed down through the generations of silversmiths who surrounded him. His knowledge of traditional techniques planted a certain curiosity in him; at age 17, he began to add new elements to Taxco's traditional silver crafts. After five years, he knew he'd found his calling and left Taxco to pursue the art of jewerly-making abroad.

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He received a degree at the Gemological Institute of America and went on to study art history in Florence and fashion in Holland. After he returned to Mexico in 1997, he launched his own unique line of jewelry. By combining his cultural background with his original vision, formal education and business savvy, Espinosa has created a jewelry brand unlike any other.

Though nowadays there are 22 Daniel Espinosa studios around the world and his jewels are worn by such famous women as Madonna, Salma Hayek and Gwyneth Paltrow, his success wasn't immediate. At the beginning, in 1997, some of his designs weren't well received in his country. Mexicans weren't used to considering silver jewelry as high quality products, but rather as souvenirs. Thus, it was hard for Espinosa to convince jewelry buyers that silver could also be seen as a high profile product, as long as it had an original design. As a result, he is well known for being one of the first Mexican jewelers to value and sell silver considering the design and not just the weight, as it used to be. But even though he changed this concept. Mexican jewelry is not yet well considered in international markets: only 16% of Mexico's jewels are exported.

Little by little, Espinosa limited his target buyer, aiming for a stronger and more successful brand. To continue to grow as a brand, he has used different forms of investment. Six of the 22 stores are corporate stores, while the rest are franchises. With US$ 10 million in sales per year, the jewler is still looking forward to expanding his brand. Nowadays, he uses high-risk funds mainly from the United States and Singapore, but he wants to find investors for long-term growth.

After opening his first store in Puebla, Espinosa expanded his brand in cities like Madrid and New York and now he is about to open one in Toronto. His goal for Mexico is to have 50 boutiques across the country. Beyond the borders, he wants to spread his brand to as many cities as possible, with a special focus on the Caribbean Islands. "The Caribbean has enormous potential since it has very colorful jewelry and the people who are on vacation are in the mood to shop," says Espinosa. Towards such goals, he attends several fairs--the Basel Fair in Switzerland, the JCK Fair in LasVegas, Iberjoya in Spain and Joya in Guadalajara--to spread the brand throughout the jewelry sector, especially among professional jewel buyers.

His designs are popular worldwide for multiple reasons. First of all, he works with very universal designs. Though the presence of a Mexican, and generally Latin connotation is latent by his use of colors, Espinosa's style is not 100% ethnic, which has been the key to his universal acceptance.

Second, the quality of his jewelry is incomparable: 95% of the production of his line occurs in Taxco; of that, 80% is handmade. His use of traditional polishing and shining techniques differentiates his product from that of other countries. And despite his use of materials not typically seen in jewelry--he uses silk, natural stones, leather, cork, blown glass and wood, among others--he maintains the same high standards of manufacturing.

Another important facet of his success is that Espinosa consistently takes risks with his use of color and unique materials. In contrast, Europeans and even Americans stick to metals and basic colors. Such risks ensure that his designs appeal to a broad audience: women and men aged 18 and over. Plus, his market is wide, since in each of the two collections he produces per year, there are more than 10,000 pieces that run from US$ 70 to 4,000 dollars. "Latin America is not my competition at all," he points out. "I've taken a very different direction leading the trend towards mixing different materials with silver and colors. Italy, France, Israel: those countries are my competition."

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To maintain his edge on the competition, Daniel Espinosa is always developing new ideas. He currently uses 18-carat gold either alone or mixed with silver and he has just started to combine silver with diamonds. "We are trying to take it to a different level, the silver seen as high standing jewelry and not only as a fashion design," he states. Next in his plans for brand expansion is a home decoration line which will include small adornments and silverware.

Espinosa believes that Mexico possesses countless products that, combined with a great strategy, could become desired goods not only in Mexico but everywhere. "Mexico produces great textiles and sandals that only need to get a unique design," he says. For future jewelry plans, Espinosa hopes to use Chiapaneco amber, another outstanding resource.

Espinosa uses his talent not only to sell his products around the world but also for social change. Max Miranda, trade director of Daniel Espinosa Studio, proposed that the jewler and his investors sponsor a philanthropic campaign, and they chose to support the Fundacion Cima, an association dedicated to helping women fight breast cancer. They designed the Cima bracelet, from which 50% of sales go directly to the foundation. "We don't control the obtained profits," says Espinosa. "But, fortunately, a generous amount was used to help different communities of the state of Guerrero by buying mammogram machines." Each new year will bring a new philanthropic project to Daniel Espinosa Studio.

Daniel Espinosa sends this message to those people with business ideas: "There are many chances to fail, but you will never know if you don't try. You only need one idea to work in order to change your life 180[degrees]; and if it doesn't work the first time, you can always start again." Coming from one of the best examples of Mexico's successful entrepreneurs, his advice is worth heeding.

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