The only constant in life is ‘change’ the jewellery industry like any other industry is going through a metamorphosis thanks to AI and the emerging technologies. This brings us to the very important discussion on AI and experience in the luxury industry. Now is the time when you will either have to embrace or expire as the consumer behaviour is changing and there has been shift in the market dynamics as well.
A recent panel discussion on “The new language of luxury experience and AI” was graced by prominent people from the luxury industry and they threw light on the various aspects of the future of luxury with AI and Modern Retail acting as the catalyst in the changing landscape of luxury retail and how experience continues to be a game changer. The ambience has a vital role to play in luxury. But today’s luxury is not defined by lavish interior and chandeliers. The panel discussion gave us a reality check in this dimension of luxury. It is a totally different ball game and one should not confuse a luxury with a premium. A touch of glamor or grandeur will not elevate the offering. Luxury is about consistency, personalization and effortless excellence things that extend far beyond what meets the eye.
The host of this session was Mr Rahul Desai CEO and MD of International Institute of Gemmology which has a legacy of around three decades and has shaped prominent leaders in the field of luxury. His expertise has also led to the emergence of R. D. consultancy and he is the founder of the same as well. He initiated the panel discussion by explaining how experience matters in luxury and India is known for its culture where guest is treated as God ‘Atithi Devo Bhava’ and this concept holds a special place in our hearts.
Every great experience starts with the act of hospitality the way a person is welcomed into the store, the refreshment served and his needs given a priority as if he is the most important person in the place and owns the place. The polite gesture of the salesman and the need recognition of the customer set the tone for the purchase. The technology today is assisting in making the experience even better, human connection and technology is taking us towards the ultimate experience which has never been experienced before and is truly extraordinary.
The role of AI in jewellery retail:
The session portrayed how AI is the rising star and how you can know your customer better through AI. With the help of AI you will have access to history of past purchases of the customer as well as his liking thanks to Instagram and other social platforms. Thus, you can sell better with AI. The way the jewellery business is operating today has changed due to AI.
One of the prominent speakers of the panel was Madam Esha Patel who is the founder of Diamond Boss, she hails from a business family of Jewellers and knows the business of jewellery in and out. She runs her brand the Diamond Boss parallel to her family’s traditional business. Thus, being a perfect blend of traditional and modern business. She gave insights on how AI has made a vast difference in the way business is taking place. AI has now become the soul of business, starting from customer relation management to design management to stock keeping as well as post sale communication AI is assisting in all segments of the business. The business has become more customer centric and the labour-intensive model has been shredded with thus making AI the soul of the Business Today.
The other prominent speaker was Mr Summit Garg who started his own brand House of Rings from scratch and is racing against his family business of Delhi Diamonds in terms of expansion and growth. He gave a valuable insight into the fact that AI gave him a fresh perspective of business and helped him to analyse which lines are working and which lines are not working and working around with the same he was able to manage inventory very effectively through AI. Thus, cutting down on losses and having more rolling cash in business.
This approach towards adoption of AI for inventory trading, demand prediction and design assortment is a perfect example of how AI is helping in shaping business strategy and growth. He mentioned that in another six months of time he would be making smart decision based on data rather than ‘gut’ feeling or traditional methods. One can go wrong with the gut feeling but one cannot go wrong with the data. Thus, he knows where he is today and where he will be after another six months purely thanks to AI.
The most experienced speaker of the panel was Mr Atul Jain who is the Chairman of Delhi Jewellers Association. His experience spans over four decades and has seen the jewellery industry closely. He rightly defined the luxury as a mirage in the desert which keeps shifting as you move towards it. It is a dream come true for a person, the glimmer in the eye after achieving the dream is luxury. It varies from person to person. What is luxury for one person might not be so for another.
Thus, luxury is very personal and it is here that experience prevails and you have to explain the dream of your customer to the producer and the producer has to manufacture it for your client. Thus, making it the ultimate dream come true experience for the client. He also talked of how Open AI is streamlining and improving work efficiency and enabling smarter decision making possible. Everledger is helping in product traceability thus AI has made the entire process more transparent for the customers.
Another prominent speaker of the panel was Mr Keshav Dutta of Multani Jewellers. He is the 5th generation to run the business and has jewellery business running in his veins. He emphasized on brand experience and personalization. In today’s jewellery industry true luxury goes beyond the chandeliers and products it is all about the experience one can create for the shopper. If a new mother comes to the store and her child is well taken care of while she attends to the designs of her choice, she takes back a good memory with her and this creates a world of difference for the shopper.
The AI helps in assisting the salesperson and being better equipped with information to cater to the needs of the consumer. The data can be handled better and after sales service can be carried out more effectively. There should also be a legacy wall in the store which speaks of the brand’s heritage and culture. The idea is not to be better than the organized retailer at national level but to be better store as compared to the organized retailer’s retail store next to his store. This is possible through a perfect marriage of AI and experience.
The panel also comprised of a researcher in the field of luxury Ms. Shreshtha Bhattacharya who spoke about the fact that the definition of luxury itself is changing today. The word luxury has been derived from the Latin word ‘luxus’ which means more. Thus, in the Victorian era there were gowns made out of volumes of silk to show abundance but today our resources are limited and the Gen Z is well aware of this fact. They also know that there is a section of the society that is starving as well.
With AI and everledger it is clear that the source of any product can be traced. At present a consumer does not want to use products which has led to the exploitation of another section of the society ‘blood diamonds’ need a special mention here. Also during Covid the sale of Indian luxury stores exploded because people were not traveling to Europe to do their luxe shopping. So, they bought what the Indian luxury stores offered. Also, sale was taking place based on images and the pieces brought and shown at houses of ultra rich. Thus, taking away the concept of store from the whole dimension of luxury product sale. Today Gen Z will not think twice while making a purchase if the AI model that replicates them carries the jewellery well and its ever Ledger is in place. The quick shopping on the go using phone and AI assisted tools are going to soon become a norm. Here the experience will count but it will be the digital experience, the authenticity of the brand and the product.
The panel discussion was concluded by Mr Rahul Desai and it was unanimously agreed that the jewellery industry is at the cusp of an exciting transformation the new language of luxury has arrived and it is smarter, faster. transparent and more personal than ever.
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Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
