Have you ever panicked when trying to get a present for your mom? Mothers can get picky. It's not just about the gift you're giving them. It really comes down to how practical that thing is. I intended to buy a ring after spending interminable time researching them on blogs and videos on YouTube. The last thing I could do was get away from keywords.
Tanishq was the first brand I thought of (kudos to them for building such a strong brand). This, however, was my first time buying gold and my first time doing it online. My mind was flooded with thousands, maybe even millions, of thoughts.
And then I did that. I tried the chatbot. Then it connected me to an expert( supposed to be a human, but I doubt). I showered all my doubts and queries and, to my surprise, did that well.
It is clear that the Jewelry industry is slowly tapping into AI. But what's more? Curious to know more about what AI can do and how it will benefit you? Keep on reading
Biggest trends in the Jewelry industry?
Deteriorating Consumer Confidence
Rising costs are having an impact on consumer spending, and jewelry stores may be feeling the pinch. Mastercard SpendingPulse found that between November 1 and December 24 of this year, jewelry sales in the United States fell 5.4% from the previous Christmas period, illustrating the impact of inflation throughout the holiday season.
The weak sales in October and November have worried many small jewelers. Some stores have been severely reducing items to sell them despite a December uptick in foot and online visitation and sales. But the result is diminished earnings for the company.
Issues in Supply Management
The decline in consumer attitude has ramifications all the way down the supply chain. Retailers buy less polished diamonds from producers, and manufacturers sell fewer raw diamonds if consumers do not purchase jewelry. The industry is seeing the effects of supply problems.
The Cost of Labor and Materials Rises
A growing cost of labor can impede operations in the mining and manufacturing sectors, just as the rising cost of gold and other production elements like silver or platinum can put pressure on the consumer-facing component of the company. Businesses must raise wages to compete for skilled labor or reduce the number of employees they employ. Either they are losing money because they have to pay more to get the aid they need, or they are losing money because they can't produce as much to sell.
The rising cost of crude oil, machinery, and other inputs into production also contributes significantly to the escalating cost of raw diamonds. Manufacturers add this cost to the final price of a polished product. This creates a shortage, making it harder for cutters and polishers to buy raw materials.
Generation Z, often known as centennials, is born after 1995 or 2000. As defined by marketers and business analysts, Generation Z comprises primarily high school seniors and recent college grads who will soon be entering the job. According to market researchers and financial analysts, they are important for the gem and jewelry industry. Generation Z is quickly becoming a crucial consumer group with a combined buying power of over $100 billion. As a result, Gen Z is an essential demographic because of the influence it will have on future consumer trends.
Over 2 billion people, or around 27% of the world's population, are part of Generation Z. India, China, and the United States are the world's three largest consumer markets and greatest youth populations. They majorly impact the worldwide demand for jewelry and precious stones.
While members of Generation Z are still too young or in their teenage years to have much purchasing power, they become a major consumer category when we consider their impact on their parents' spending or family consumption. This is because in their childhood, adolescence, and adulthood, they are showered with gifts from their parents, relatives, friends, and acquaintances.
In addition, given the cultural differences in jewelry-buying customs, this generation will have a significant future influence on the jewelry business. Companies cannot afford to disregard Gen Z because of the significant effect they represent.
Some of the biggest fear customers face when shopping jewelry for the first time online
Customers new to buying jewelry online have many worries before making their first purchase. Some examples are as follows:
Customers who shop for jewelry online share concerns regarding the item's genuineness. There is a risk of getting an imitation or low-quality product if they don't get to handle it beforehand.
Sizing and Fit
Jewelry rings, bracelets, and necklaces have different sizing and fitting needs. Potential buyers may be wary of acquiring jewelry online for fear of receiving an item that is too big or too little.
Concerns regarding the jewelry's quality are understandable among online purchasers. They may doubt the item's quality, durability, and presentation without the opportunity to examine it directly.
Security and Privacy
When conducting business online, revealing sensitive personal and financial details is necessary. Customers could be wary of completing an order out of concern that their personal information will be stolen or misused in some way.
Shipping and Delivery
When it comes to delivery and shipping, customers often have concerns about things like shipment delays, loss, or damage. There might be worries regarding the safety and dependability of the delivery service.
Return and Exchange Policies
Customers may worry that returning or exchanging jewelry will be difficult because they can't put it on or inspect it in person before buying. Being concerned about hidden costs and a lack of return options is natural.
Can every e-commerce jewelry store address this solution?
Building a GPT-powered chatbot to address these issues
An online jewelry store can utilize a GPT-powered chatbot to answer these questions and reassure clients. Consider these uses for the chatbot:
The chatbot can reassure buyers that their purchases are genuine by informing users about the jewelry's origins, certification, and guarantee. It can provide information on your desired metals, stones, and other jewelry components.
Whether a consumer is trying to find their perfect ring size, bracelet length, or necklace length, the chatbot can help. Customers may find helpful resources like size charts, measuring guidelines, and interactive tools.
The chatbot can give in-depth explanations of products, down to the materials used and the methods employed in production. To establish credibility and prove the superiority of the jewelry, it might feature reviews and testimonials from satisfied customers.
The chatbot can reassure clients that their private and financial data is safe because of the precautions taken. It can reassure users by detailing the system's security features, such as encryption, payment processing, and data storage.
The chatbot is a valuable resource for shipping and delivery, as it can answer questions about available services, projected delivery dates, and more. It can ease worries regarding on-time deliveries, insurance, and customer assistance.
The chatbot can provide a clear and comprehensive explanation of the company's return and exchange procedures. How to begin a return, how long returns take, and any fees involved may all be found there.
A step-by-step guide
Step 1: Determine the Chatbot's Purpose and Scope.
Within the app, the chatbot will function as a virtual assistant, guiding users through selecting a piece of jewelry, answering questions about the various stones and metals available, helping with order tracking, and generally fielding concerns about the company's offerings.
Step 2: Acquire and Process Training Information
Compile customer questions, service history, product descriptions, and frequently asked questions. Scrub and preprocess the data such that it answers any question a consumer could have.
Step 3: use GPT to train the chatbot.
Train the chatbot with a GPT-based language model, such as GPT-3 or GPT-4. Tune the model to perfection by using the information learned in Step 2. The chatbot can be taught to respond to questions about jewelry and provide thoughtful suggestions for purchases.
Step 4: Create the chatbot's user interface
Build a conversational user interface for the Sparkling Gems Jewelry app. Customers can quickly navigate the interface and start a conversation with the chatbot. Improve the user experience by including functions like rapid responses, product carousels, and search bars.
Step 5: integrate the chatbot into the jewelry app
Add the chatbot to the Sparkling Gems Jewelry app to be accessed from the main menu or a floating chat icon. Ensure the chatbot can be easily accessed from the main menu and other essential app screens like the store's product pages, shopping cart, and support hub.
Step 6: Pilot the Chatbot and Make Adjustments
It should undergo extensive testing to guarantee the chatbot can adequately react to a wide range of user questions. Carry out user acceptance testing (UAT) using a large and varied testing crew to mimic real-world user behavior. Make use of their comments to enhance the chatbot's performance.
Step 7: Track Results and Solicit Input from Customers
Key indicators should be monitored, including response time, customer happiness, and resolution ratings. In-app surveys and feedback forms should continuously gauge consumer happiness and pinpoint problem areas.
Step 8: Refine and Adapt
The chatbot's training data should be regularly updated, and the model should be fine-tuned in light of user feedback and new trends. Improve the chatbot's capacity to provide tailored product suggestions and implement additional functionality to answer frequently asked questions.
What are the other ways this industry can utilize AI?
Virtual showroom view
Online jewelry retailers face a significant challenge when customers want to view the products before buying them. They are curious about its dimensions, luster, the cut of its gemstones, and the vibrancy of its hue. To avoid this is to showcase the store's jewelry on the website. When combined with 3D holographic technology, artificial intelligence (AI) and machine learning (ML) can assist in identifying which items a client is particularly interested in learning more about. They can select the things they're most interested in beforehand and give them a virtual tryout.
James Allen, a popular internet vendor of diamonds and other fine jewelry, even has a "virtual showroom." Their vast diamond and jewelry selection may be browsed via their website or mobile app. Diamonds and other jewels can be viewed in high-resolution 360-degree photos and movies so that customers can study the items in detail from all angles before purchasing.
Digitally trying on jewels
If a consumer cannot visit the store to try on a diamond, then give them the option to do so online. Many fashion websites currently provide virtual try-ons so users can see how, for example, a dress might look on them. The same is applied n this industry. Prospective buyers may peruse the jewelry store's online pieces and virtually try them on to get the perfect fit. The AI can digitally lay the gems over them by accurately mapping their face or hands. It appears as though they are trying them on in a mirror. It's like the "filters" we see on social media sites like Instagram and Snapchat but for businesses.
Famous luxury jeweler Tiffany & Co. has added an interactive tool where customers may "try on" engagement rings virtually. The Tiffany & Co. Engagement Ring Finder app allows customers to virtually try on various ring types conveniently from their mobile devices. Clients can get a good idea of how the band will appear on their finger by taking a picture of their hand and then choosing a ring design.
Inspecting a diamond in real-time
How convenient it would be if AI could identify the difference between a genuine diamond and one that has been faked or imperfect. Diamond Pro's AI tool, Ringo, has made this a reality. Users may use this technology to find "clean to the naked eye" diamonds based on their preferences and budgets. AI can spot a flaw or particle that is plain to see using this innovation.
Based on your budget, diamond shape, preferred setting style, and metal, Ringo will provide you with professional options. Ringo employs an algorithm based on principles The Diamond Pro specialists created and an AI engine to show possibilities ranging from not eye-clean to exceptionally eye-clean once the customer selects parameters for these. The engine automatically disqualifies Diamonds that aren't flawless. After that, you'll see a report with details like the diamond's price, eye cleanliness %, color, clarity, and fluorescence.
How can Jewelry manufacturers utilize AI?
AI for design
The jewelry industry can use artificial intelligence (AI) algorithms to aid the creative process. AI systems produce various design possibilities based on inputs, including desired style, gemstone type, metal preferences, and buyer preferences. AI may design jewelry using historical data, market trends, and client input. This helps save time and effort during manual design cycles, sparks new ideas during the design process, and streamlines the whole design procedure.
The researchers provide a revolutionary approach to mass-producing stone jewelry designs in their article. They suggest a method combining jewelry design concepts with dynamic programming approaches to generate designs using stones. A pruning model eliminates unappealing ideas to guarantee that the final plans are aesthetically pleasing.
The method outlined in the article generates several attractive and varied production-ready designs. Figure 1a shows a set of earrings made by hand by artisans in Jaipur, India, and serves as an example provided by the authors. These earrings are an example of a design made possible by following their method.
The authors state their aim to continue improving their designs' quality in the future. They intend to broaden the scope of their study to embrace new jewelry types and design ideas.
Machine Learning to Estimate Gross Loss of Jewelry for Wax Patterns
Machine learning can be used to calculate the total amount of jewelry that is lost during the making of the wax pattern. Manufacturers can anticipate weight loss throughout the casting process by training a machine learning system on previous data.
According to the research, this is how it may go down:
Gather information about the wax patterns' original weight and the final casted jewelry items' weight from past jewelry production cycles. This data collection's designs, metals, and casting parameters should be comprehensive.
Choose the suitable characteristics that aid in the reduction of casting weight. Consider the casting parameters, such as temperature and pressure, as well as the design's complexity, the jewelry piece's size, and the metal utilized.
After the model has been trained and assessed, it may be applied in the jewelry production process. Manufacturers can anticipate the expected gross loss during casting by inputting important design factors into the model when a new wax pattern is prepared. With this data, you can calculate the precise amount of metal required for casting, minimizing wastage.
How can they utilize AI and GPT for Jewelry marketing?
Gen Zers are digital natives because of their upbringing. They've always had access to computers, smartphones, and other digital gadgets. They have more open attitudes on sexuality, politics, universal values, and protecting the environment since they were raised with more liberal views. They are well-versed in technology and adept at forming and sustaining connections with others using platforms like Tumblr, Instagram, Facebook, and Whisper. Being born into the digital age, kids are quick to learn but just as quick to lose interest in what they've learned.
The customers of Generation Z need to be persuaded with just a few words that resonate with them or have their attention captured in just a few seconds. Thus brands and marketers need to develop methods to engage with them instantly. As a result, marketing efforts aimed at GenZ must be concise, clever, and relevant; otherwise, this demographic will quickly move on to other offerings. In addition, Gen Z has a unique perspective and values originality and honesty in advertising.
Omni channel marketing strategy
ChatGPT could be beneficial when planning an omnichannel marketing approach. You can feed it with our consumer tastes and habits by monitoring their data, purchases, and interactions. Email, social media, websites, and mobile applications are just a few channels for leveraging this data to develop personalized marketing campaigns with consistent and focused content to promote consumer engagement and conversions.
Prompt: “ We are a diamond jewelry retailer. Develop an Instagram marketing strategy and share content ideas to effectively engage and target our Gen Z audience. We are looking to increase brand awareness.
Provide recommendations on how we can leverage various marketing channels to create a cohesive and impactful strategy.”
GPT to write better product description
Writing more engaging and informative product descriptions is the need of hours. You can do this with the help of GPT. The model can learn to provide descriptions highlighting each jewelry piece's unique qualities, craftsmanship, materials, and design components by being trained on a large corpus of jewelry-related text. This is useful for writing catchy, convincing, and ultimately sales-driving product descriptions.
Prompt : We are launching a new ring. This golden ring has a rose undertone which complements the three heart-shaped diamonds on the top of it. This light weight elegant ring is for working ladies.
Suggest an aesthetic name for it. Write a catchy and persuasive product description describing its beauty and utility. Maximum 100 words.
GPT to write social media copy
Writing compelling content on social media platforms is time-consuming work. Captions, hashtags, and social media posts can all be generated with the help of GPT, making it a helpful tool for marketers. GPT may create content that aligns with the brand's tone and grabs the target audience's attention, boosting social media marketing efforts by responding to input prompts or desired topics.
Promp: “We are introducing this " Roseheart Radiance" Ring. This golden ring has a rose undertone which complements the three heart-shaped diamonds on the top of it. This lightweight, elegant ring is for working ladies. This golden ring has a rose undertone which complements the three heart-shaped diamonds on the top of it. This sleek light ring is for working ladies.
Our TA is GenZ working woman. Keep the tone conversational.
Write a fun yet catchy social media copy for our Instagram page. Keep it short and give a cta to visit our website.
Don't include " GenZ" in the copy.”
GPT for Email Marketing
GPT can help you write engaging email marketing messages. It can produce highly relevant and engaging emails by learning about individual consumers. You can use GPT's subject line ideas, email text drafts, and suggested calls to action to build more effective email campaigns that increase opens, clicks, and sales.
Prompt: our previous customer bought a lightweight pendant 3 months back. Now we are launching a new ring. We are introducing this " Roseheart Radiance" Ring. This golden ring has a rose undertone which complements the three heart-shaped diamonds on the top of it. This lightweight, elegant ring is for working ladies. This golden ring has a rose undertone which complements the three heart-shaped diamonds on the top of it. This sleek light ring is for working ladies.
It will match the pendant. We want to offer 15% off to this lady.
Write a concise yet persuasive email copy for the same. Ditch boring intro, subject line, and opening. Add a popular tv series dialogue or Bollywood movie dialogue to make it more fun and interactive.
Keep it short and skimmable
AI: The Boon to do more with less in Jewelry Industry
Here are some upsides of implementing AI into an online store's jewelry department. Some of them are listed below.
Personalized product suggestions based on a customer's browsing and purchasing history are one way in which AI is helping to improve the shopping experience for individual consumers. Artificial intelligence (AI) may analyze client data and provide product recommendations based on those preferences, increasing the chance of a sale and the customer's happiness.
Improved Customer Service
Enhanced support for customers thanks to chatbots driven by artificial intelligence, which are available around the clock to address any issues that may arise. As a result, chatbots may free up human customer care agents to focus on more difficult concerns, such as tracking an order's delivery or processing a refund.
Enhanced Inventory Management
AI could help keep stock by improving the supply chain and anticipating consumer demand. Artificial intelligence can reduce the likelihood of stockouts and overstocks by evaluating sales data to predict trends and adjusting inventory levels accordingly.
Better Pricing Strategies
Artificial intelligence may look at sales data and industry trends to help determine the most effective prices to charge. Based on supply and demand, competitive pricing, and consumer behavior, it can suggest the most profitable prices for each product.
The production process could be streamlined with the help of AI, which can estimate demand and optimize manufacture based on that prediction. Artificial intelligence (AI) could assist businesses in saving time and money by suggesting what items to make and when to make them based on an analysis of client preferences.
By evaluating photos and data from manufacturing lines, AI can assist in guaranteeing goods are of high quality and up to par with industry requirements. If this is the case, there may be fewer product returns and fewer complaints.
Ready to reap the benefits?
AI no doubt can improve the picture of the jewelry industry. If you want to put yourself in the jewelry industry, contact Ionio.io today. Integrate AI into your workflow and boost our ROI!