Social media software company Brandwatch details the five biggest trends affecting the retail  industry, and how to take action on them, in a new report.

First up in the report is shrinkflation—by which package size goes down for the same or even greater price. Data shows more consumers are calling out the practice—which is most obvious with groceries and household items—on social media. The impact on the jewelry business: Amid such irritation at paying higher prices for less product, jewelry store visits become more of an experiential escape.

Next, the report says that consumers appear to be embracing AI (artificial intelligence) for the convenience it provides. While AI can pose issues, shoppers are voicing excitement for its potential in offering customized suggestions when they shop online. What this tells us in the jewelry business, perhaps, is to be open to the idea of using AI on a brand website,  as it potentially enhances customers’ experience and moves them closer to making a purchase.

But not all is happy in the land of AI. For its third trend, Brandwatch cites consumer frustration with in-store surveillance, which is often powered by AI (for systems such as facial recognition and self-checkout). Retailers do need to protect their merchandise, particularly as shoplifting has become an all-too-prominent problem, but consumers are wary of practices that feel invasive of their privacy. “Retail brands must tread the line between effective loss prevention and making customers feel welcome and comfortable,” the report says.

The fourth trend is automation in customer service. This shouldn’t be news for many companies in the jewelry industry. Nevertheless, they should note the importance placed on personalized service—those fond of automation tend to like the convenience and ease at which it can be reached.

Finally, Brandwatch talks about sustainability—a trend (we can’t really call it a trend, can we?) our industry is highly familiar with. Consumers want more eco-friendly materials and recycling practices implemented, which many brands appear to be doing. Still,  jewelry companies need to make sure they’re knowledgeable on guidelines for such practices.

(Photo: Getty Images)

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