GIT Information Center

Technology Expedites Gem and Jewelry Business Capacity Enhancement

Dec 19, 2022
596 views
0 share

            Challenges during the past few years have stimulated awareness of modern jewelry consumers to pay more attention toward ethical, sustainable, and environmentally friendly products; tracing of product origin; and new business models. They have also spurred usage of digital tools and platforms to drive gem and jewelry business growth in many sectors. 

            According to a report by McKinsey & Co., online jewelry sales will account for 18-21 percent of global jewelry sales by 2025, from 13 percent in 2019. It signals that the business has shifted toward to e-commerce. The trend affirms that businesses have to look for interesting digital marketing channels to attract customers, which state-of-the-art digital technology advancement, particularly, reality technology and 3D product display have become more important in society and gem and jewelry business sector. It also contributes to constant growth of business and prepares it to face future challenges.

What is Reality Technology?

            As current global situations focus on developing metaverse technology to create virtual reality experience, which can be applied in different industries, including gem and jewelry industry, reality technology has been used to imitate virtual environment through senses-- sight, hearing, touch, or smell. According to a recent forecast by International Data Corporation (IDC), investment share in reality technology markets worldwide reached USD 14,670 million in 2021. It has been expected that the figure will rise to USD 74,730 million in 2026. The annual compound average growth rate will increase to 38.5 percent during 2022-2026.

            “Reality Technology” (RT) can be applied into diversified usages according to different needs. It is adopted into industries/activities effectively. Reality technologies which have been common among people are Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and Extended Reality (XR). Each reality technology holds distinct characteristics as follows.

            Augmented Reality (AR) is a technology which combines reality with virtual reality. It is presented through electronic devices such as mobile phones and computers, which work in conjunction with a software to produce 3D virtual reality for more engaging virtual reality experience. The technology grew faster than other reality technologies as it can be used with typical smart phones.

            Virtual Reality (VR) is a technology which has been created from virtual reality. By wearing VR devices, users can interact with the virtual reality world through simulation. The VR changes traditional perception or simplify subjects through virtual situations. At present, it has been widely applied into various businesses. For instance, in medical use, the technology is adopted for study and practice preparing for effective treatment for patients. In various industries, it is applied to promote skills and reduce possible losses as employees can practice from simulation scenarios to prepare for real situations which may occur in the future more effectively.

            Mixed Reality (MR) is a technology which creates something to connect with the real world. AR and VR technology are blended like merging virtual reality together with reality. Users can enjoy new cutting-edged experience by wearing the holographic computing devices. They are special devices which project virtual hologram figures, allowing users to freely interact. The prominent feature of the technology is providing user with more realistic access to certain situations—touch or modify as they want.

            Extended Reality or XR is a combination of real and virtual environments, produced by merging AR, VR, and MR technology together. It could be considered as an extension of creating virtual reality within reality. Currently, XR has been in development process to be used in different businesses in the future.


            “AR technology allows customers to experience trying on jewelry pieces in real-time as if they are at a jewelry store. Such service will help promote online jewelry sales.”


            Gem and jewelry businesses need to create shopping experience responding to demand and lifestyle of consumers as the COVID-19 pandemic has not only made online shopping an interesting choice, but it has been the only choice for many consumers. Therefore, various jewelry brands began to include technologies in trying on products through AR in their marketing strategies. They offer more effective product introduction to buyers. Shoppers can explore or try on products without visiting a physical jewelry store. They can also decide on buying a product more conveniently.

AR Transforms Jewelry Retail Business

            Although, people have become more familiar with online jewelry shopping, that is not always the case. Process in choosing jewelry is extremely sensitive and unique whether buying an engagement ring, shopping for a necklace for a teenage daughter, or choosing jewelry piece as a gift for a loved one. This is because jewelry products are expensive. Furthermore, being able to thoroughly examine appearance of a jewelry piece remains essential. Thus, shoppers hesitate to buy expensive fine jewelry online. However, AR technology has revolutionized selling jewelry on the Internet. The technology provides an opportunity for customers to experience real-time jewelry try-on like they are in a jewelry store.

            It has been anticipated that number of AR technology users through mobile devices worldwide will be around 1.7 billion by 2024. According to the data from ThinkMobiles, 63 percent of customers were certain that AR would help improve shopping experience. Another 35 percent stated that they were likely to buy more products online if they could virtually try on products before buying. 

            Not only customers benefit from online jewelry stores that provide AR technology, but jewelry brands themselves could also gain advantages from using applications with try-on technology through AR for their marketing strategies as follows.

             Raise quality of interactions with consumers: AR helps buyers trying on jewelry pieces and expedite their purchase. Applications with product try-on technology through AR are likely to induce shoppers to buy products more effectively. The recent article by Business Wire stated that 72 percent of the survey responders bought products without having been planned due to influence from AR technology.

             Higher rate of transitioning into customers: According to the data from Deloitte Digital, brands which feature unique AR experience are likely to attract more customers with a 41 percent rate. Almost three quarters of the customers were happy to pay more for products of which sellers provides AR technology, allowing them to examine and try on products.

             Easier product launch announcement: It is no longer necessary to print out catalogs every time a jewelry brand release a new collection. Brands can just add a jewelry catalog with 3D AR virtual technology in an application. Buyers are able to try on a new jewelry piece and check its price at any time.

             Combine shopping and social activities: Jewelry shopping requires many serious processes, which may include asking for recommendations from friends, comparing prices, and reading reviews. When using an application with AR technology, shoppers can seamlessly share jewelry photos with others.

 

Source: https://postindustria.com/ and https://www.diamondhedge.com/ 


            Currently, renowned brands in jewelry business such as Tiffany & Co and Pandora as well as many independent jewelers, for instance, James Allen, a famous jewelry in the US, independent jewelry trading places such as Diamond Hedge, include a virtual try-on technology through AR on their websites and applications. The technology helps shoppers choose gemstones and precious metal settings from provided options, customize rings or jewelry pieces, and virtually try on the chosen jewelry piece as they want.

            In addition, a software technology simulating virtual reality through AR is used widely on websites in fashion and jewelry business, for example, a virtual boutique of Piaget, which sells luxury jewelry and watch. Entering the boutique, visitors can browse at hundreds of products, 3D product photos, or explore products from different angles. A similar technology was used by Tiffany & Co in arranging the “Vision & Virtuosity” exhibition at Saatchi Gallery in London. The exhibition showcased over 400 precious jewelry pieces with AR technology, which enabled virtual experience through an application. Many other brands organized jewelry exhibitions with the technology.



 

Tiffany & Co’s “Vision & Virtuosity” exhibition

            Virtual technologies, particularly AR, have become increasingly prevalent in gem and jewelry business. Jewelers and jewelry brands expedite building marketing strategies to strengthen their capacities in modern technology, combining reality and virtual reality. They also get ready to transition into metaverse to respond to consumers’ demand and to provide exceptional experience to customers. In addition, blockchain technology has been adopted for sustainably supplied gemstones to offer the ability to trace origin and transparency in their routes from mines to markets for modern consumers who place more importance on environmental, social, and good governance issues.



Kawinita Krittapassakornrawong

The Gem and Jewelry Institute of Thailand (Public Organization)


References


1) Postindustria. 2022. Why You Should Consider AR Try-on for Jewelry Retail in 2022. [Online]. Available at: https://postindustria.com/why-you-should-consider-ar-try-on-for-jewelry-retail-in-2022-jewelry-tryon/.
2) Postindustria. 2022. How to Reduce Returns in Jewelry E-commerce with Disruptive Technologies. [Online]. Available at: https://postindustria.com/how-to-reduce-returns-in-jewelry-e-commerce-with-disruptive-technologies-ar-commerce/.
3) JNA. 2022. Gem and jewellery solutions and innovations. [Online]. Available at: https://news.jewellerynet.com/en/jnanews/features/24705
4) Retailwit. 2022. Tiffany & Co.’s ‘Vision & Virtuosity,’ Featuring AR Try-On Tech, Debuts at Saatchi London. [Online]. Available at: https://retailwit.com/tiffany-co-s-vision-virtuosity-featuring-ar-try-on-tech-debuts-at-saatchi-london/
5) Snap AR adds a new facet to Tiffany & Co.’s Iconic Jewelry. [Online]. Available at: https://newsroom.snap.com/tiffany
6) McKinsey & Company. 2021. State of Fashion: Watches and Jewellery. [Online]. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion-watches-and-jewellery.
7) Techsauce. 2000. AR VR MR XR คืออะไร แตกต่างกันอย่างไร ปูพื้นฐานก่อนเข้าสู่โลก Metaverse. [ออนไลน์]. แหล่งที่มา: https://techsauce.co/metaverse/what-is-the-difference-ar-vr-mr-xr.
8) Infographic Thailand. 2021. Reality Technology คืออะไร? ความแตกต่างของ AR VR MR และ XR. [ออนไลน์]. แหล่งที่มา: https://infographicthailand.com/reality-technology-%E0%B8%84%E0%B8%B7%E0%B8%AD%E0%B8%AD%E0%B8%B0%E0%B9%84%E0%B8%A3-%E0%B8%84%E0%B8%A7%E0%B8%B2%E0%B8%A1%E0%B9%81%E0%B8%95%E0%B8%81%E0%B8%95%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%82/.

Attachment


Comments


GIT Information Center

Technology Expedites Gem and Jewelry Business Capacity Enhancement

Dec 19, 2022
596 views
0 share

            Challenges during the past few years have stimulated awareness of modern jewelry consumers to pay more attention toward ethical, sustainable, and environmentally friendly products; tracing of product origin; and new business models. They have also spurred usage of digital tools and platforms to drive gem and jewelry business growth in many sectors. 

            According to a report by McKinsey & Co., online jewelry sales will account for 18-21 percent of global jewelry sales by 2025, from 13 percent in 2019. It signals that the business has shifted toward to e-commerce. The trend affirms that businesses have to look for interesting digital marketing channels to attract customers, which state-of-the-art digital technology advancement, particularly, reality technology and 3D product display have become more important in society and gem and jewelry business sector. It also contributes to constant growth of business and prepares it to face future challenges.

What is Reality Technology?

            As current global situations focus on developing metaverse technology to create virtual reality experience, which can be applied in different industries, including gem and jewelry industry, reality technology has been used to imitate virtual environment through senses-- sight, hearing, touch, or smell. According to a recent forecast by International Data Corporation (IDC), investment share in reality technology markets worldwide reached USD 14,670 million in 2021. It has been expected that the figure will rise to USD 74,730 million in 2026. The annual compound average growth rate will increase to 38.5 percent during 2022-2026.

            “Reality Technology” (RT) can be applied into diversified usages according to different needs. It is adopted into industries/activities effectively. Reality technologies which have been common among people are Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and Extended Reality (XR). Each reality technology holds distinct characteristics as follows.

            Augmented Reality (AR) is a technology which combines reality with virtual reality. It is presented through electronic devices such as mobile phones and computers, which work in conjunction with a software to produce 3D virtual reality for more engaging virtual reality experience. The technology grew faster than other reality technologies as it can be used with typical smart phones.

            Virtual Reality (VR) is a technology which has been created from virtual reality. By wearing VR devices, users can interact with the virtual reality world through simulation. The VR changes traditional perception or simplify subjects through virtual situations. At present, it has been widely applied into various businesses. For instance, in medical use, the technology is adopted for study and practice preparing for effective treatment for patients. In various industries, it is applied to promote skills and reduce possible losses as employees can practice from simulation scenarios to prepare for real situations which may occur in the future more effectively.

            Mixed Reality (MR) is a technology which creates something to connect with the real world. AR and VR technology are blended like merging virtual reality together with reality. Users can enjoy new cutting-edged experience by wearing the holographic computing devices. They are special devices which project virtual hologram figures, allowing users to freely interact. The prominent feature of the technology is providing user with more realistic access to certain situations—touch or modify as they want.

            Extended Reality or XR is a combination of real and virtual environments, produced by merging AR, VR, and MR technology together. It could be considered as an extension of creating virtual reality within reality. Currently, XR has been in development process to be used in different businesses in the future.


            “AR technology allows customers to experience trying on jewelry pieces in real-time as if they are at a jewelry store. Such service will help promote online jewelry sales.”


            Gem and jewelry businesses need to create shopping experience responding to demand and lifestyle of consumers as the COVID-19 pandemic has not only made online shopping an interesting choice, but it has been the only choice for many consumers. Therefore, various jewelry brands began to include technologies in trying on products through AR in their marketing strategies. They offer more effective product introduction to buyers. Shoppers can explore or try on products without visiting a physical jewelry store. They can also decide on buying a product more conveniently.

AR Transforms Jewelry Retail Business

            Although, people have become more familiar with online jewelry shopping, that is not always the case. Process in choosing jewelry is extremely sensitive and unique whether buying an engagement ring, shopping for a necklace for a teenage daughter, or choosing jewelry piece as a gift for a loved one. This is because jewelry products are expensive. Furthermore, being able to thoroughly examine appearance of a jewelry piece remains essential. Thus, shoppers hesitate to buy expensive fine jewelry online. However, AR technology has revolutionized selling jewelry on the Internet. The technology provides an opportunity for customers to experience real-time jewelry try-on like they are in a jewelry store.

            It has been anticipated that number of AR technology users through mobile devices worldwide will be around 1.7 billion by 2024. According to the data from ThinkMobiles, 63 percent of customers were certain that AR would help improve shopping experience. Another 35 percent stated that they were likely to buy more products online if they could virtually try on products before buying. 

            Not only customers benefit from online jewelry stores that provide AR technology, but jewelry brands themselves could also gain advantages from using applications with try-on technology through AR for their marketing strategies as follows.

             Raise quality of interactions with consumers: AR helps buyers trying on jewelry pieces and expedite their purchase. Applications with product try-on technology through AR are likely to induce shoppers to buy products more effectively. The recent article by Business Wire stated that 72 percent of the survey responders bought products without having been planned due to influence from AR technology.

             Higher rate of transitioning into customers: According to the data from Deloitte Digital, brands which feature unique AR experience are likely to attract more customers with a 41 percent rate. Almost three quarters of the customers were happy to pay more for products of which sellers provides AR technology, allowing them to examine and try on products.

             Easier product launch announcement: It is no longer necessary to print out catalogs every time a jewelry brand release a new collection. Brands can just add a jewelry catalog with 3D AR virtual technology in an application. Buyers are able to try on a new jewelry piece and check its price at any time.

             Combine shopping and social activities: Jewelry shopping requires many serious processes, which may include asking for recommendations from friends, comparing prices, and reading reviews. When using an application with AR technology, shoppers can seamlessly share jewelry photos with others.

 

Source: https://postindustria.com/ and https://www.diamondhedge.com/ 


            Currently, renowned brands in jewelry business such as Tiffany & Co and Pandora as well as many independent jewelers, for instance, James Allen, a famous jewelry in the US, independent jewelry trading places such as Diamond Hedge, include a virtual try-on technology through AR on their websites and applications. The technology helps shoppers choose gemstones and precious metal settings from provided options, customize rings or jewelry pieces, and virtually try on the chosen jewelry piece as they want.

            In addition, a software technology simulating virtual reality through AR is used widely on websites in fashion and jewelry business, for example, a virtual boutique of Piaget, which sells luxury jewelry and watch. Entering the boutique, visitors can browse at hundreds of products, 3D product photos, or explore products from different angles. A similar technology was used by Tiffany & Co in arranging the “Vision & Virtuosity” exhibition at Saatchi Gallery in London. The exhibition showcased over 400 precious jewelry pieces with AR technology, which enabled virtual experience through an application. Many other brands organized jewelry exhibitions with the technology.



 

Tiffany & Co’s “Vision & Virtuosity” exhibition

            Virtual technologies, particularly AR, have become increasingly prevalent in gem and jewelry business. Jewelers and jewelry brands expedite building marketing strategies to strengthen their capacities in modern technology, combining reality and virtual reality. They also get ready to transition into metaverse to respond to consumers’ demand and to provide exceptional experience to customers. In addition, blockchain technology has been adopted for sustainably supplied gemstones to offer the ability to trace origin and transparency in their routes from mines to markets for modern consumers who place more importance on environmental, social, and good governance issues.



Kawinita Krittapassakornrawong

The Gem and Jewelry Institute of Thailand (Public Organization)


References


1) Postindustria. 2022. Why You Should Consider AR Try-on for Jewelry Retail in 2022. [Online]. Available at: https://postindustria.com/why-you-should-consider-ar-try-on-for-jewelry-retail-in-2022-jewelry-tryon/.
2) Postindustria. 2022. How to Reduce Returns in Jewelry E-commerce with Disruptive Technologies. [Online]. Available at: https://postindustria.com/how-to-reduce-returns-in-jewelry-e-commerce-with-disruptive-technologies-ar-commerce/.
3) JNA. 2022. Gem and jewellery solutions and innovations. [Online]. Available at: https://news.jewellerynet.com/en/jnanews/features/24705
4) Retailwit. 2022. Tiffany & Co.’s ‘Vision & Virtuosity,’ Featuring AR Try-On Tech, Debuts at Saatchi London. [Online]. Available at: https://retailwit.com/tiffany-co-s-vision-virtuosity-featuring-ar-try-on-tech-debuts-at-saatchi-london/
5) Snap AR adds a new facet to Tiffany & Co.’s Iconic Jewelry. [Online]. Available at: https://newsroom.snap.com/tiffany
6) McKinsey & Company. 2021. State of Fashion: Watches and Jewellery. [Online]. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion-watches-and-jewellery.
7) Techsauce. 2000. AR VR MR XR คืออะไร แตกต่างกันอย่างไร ปูพื้นฐานก่อนเข้าสู่โลก Metaverse. [ออนไลน์]. แหล่งที่มา: https://techsauce.co/metaverse/what-is-the-difference-ar-vr-mr-xr.
8) Infographic Thailand. 2021. Reality Technology คืออะไร? ความแตกต่างของ AR VR MR และ XR. [ออนไลน์]. แหล่งที่มา: https://infographicthailand.com/reality-technology-%E0%B8%84%E0%B8%B7%E0%B8%AD%E0%B8%AD%E0%B8%B0%E0%B9%84%E0%B8%A3-%E0%B8%84%E0%B8%A7%E0%B8%B2%E0%B8%A1%E0%B9%81%E0%B8%95%E0%B8%81%E0%B8%95%E0%B9%88%E0%B8%B2%E0%B8%87%E0%B8%82/.

Attachment

We uses cookies to improve website performance. You can learn more about the use of cookies at Cookie Policy   Setting Accept

×
140 ITF Tower Building, 4th Floor,<br> Silom Road, Suriyawong, Bangrak, <br>Bangkok10500, Thailand
Phone: (662) 634-4999 ext 444
Fax: (662) 634-4970