what's up guys this is Jesse Korby from Jewelers advantage and today we have probably the most disruptive video that we've done to date at Jeweler's Advantage you hear us say things like this is the new jewelry industry and this video that you're about to see is a big reason that we say things like that AI in the jewelry industry goes way way way Beyond cool designs that you can generate there's also real business applications for AI in jewelry and we're going to go over that today so a big part of business is competition and this is something that can be triggering for people it kind of elicits a fight ORF flight response often times because we're talking about the survival of your business and your livelihood so it's often a topic that makes people a little bit anxious so we're getting that out of the way with the cover photo here with this Joker inspired type character competition is actually good and throughout this video you're going to understand why it's actually really easy to use AI to analyze your competitor but if you've seen my other videos you've learned that it's not about using AI as a tool it's about using it as an amplifier for your imagination an amplifier of Consciousness if you will so there's a lot going around in the media about AI possibly taking people's jobs and that's not at all the truth it is that a human using AI is your biggest competitor not AI itself so what we're going to cover today is how you can use AI to get an idea of what's going on in the market that's really what competition is all about and how you can use AI to your benefit in building the business of your dream so let's get into it now that we got the scary part out of the way with competition let's talk about the philosophy of competition whenever I'm talking with one-on-one clients we usually take a step back and really think about what it means to have a competitor and what you should be thinking and feeling as you interact with the market and come to understand the market by watching your competitors so many people will know that I'm a big proponent of The Art of War as business literature at one point I even wrote out Every Word by hand of The Art of War so I'm pretty well versed in this material and there's one quote here that we should pay close attention to on the topic of competition from sunzoo it's if you know the enemy and know yourself you need not fear the result of a 100 Battles if you know yourself but not the enemy for every Victory gained you will also suffer defeat if you know neither the enemy nor yourself you will succumb in every battle so the lesson here is about really knowing knowing what your business is all about knowing what your competitor's businesses are doing so that way there's no surprises now again these aren't our enemies out in the market this is kind of a metaphor they are certainly our opponents in a game of business but the takeaway here is that we want to know oursel and know our opponent to balance that out a little bit I always try to remind myself and others that my competitor deserves to have a dream too these people have families to feed just like you they have aspirations of who they want to become just like you so in a way you can appreciate your competitor for that they have a lot more in common with you than a lot of people out in the world and you should also understand that there's a yin and yang to this that you are the competitor to somebody whenever you make a sale there's going to be a finite amount of sales made in the jewelry market this year and every time you make one that's taking one away away from a competitor the same way as when a competitor makes a sale you don't get that sale so keep in mind your competitor deserves to have dream too and then my favorite quote from Bruce Lee this takes away some fear it's just a redaction of a longer quote from him and essentially it's saying I am not locked in here with you you are locked in here with me if you were locked in a room with Bruce Lee so I try to remember that to take away fear from the idea of competition it's like hey remember you're talented too they've got to deal with you just as much as you've got to deal with them so remember competition is good it brings out your best if you went out running by yourself you probably wouldn't run as fast as if you were on a track running a race against other people so your competitor does serve a purpose to motivate you and make you everything that you can be and then it also proves there is a market there's a real functional reason to want to have competitors because if you're in a lane completely by yourself you might be by yourself with no customers so competition is an indicator that there is a place for you to go operate and make sales so remember though that you want to focus on yourself 99% of the time I've got competitors too and I barely think about them so for your world as a jeweler a retail Jeweler there's certainly people selling jewelry and it's more about keeping tax s on your competitors so that way you can get an idea of what's even happening out there in the world and every dog will have its day when it comes to sales so just remember that you should focus on yourself and what you can do for your business now when we're assessing competitors the best way to do that is within the context of a framework so we're going to start here with the market and I promise we're getting to the AI stuff but as we get into the AI for analyzing a competitor you need to understand that this this is what we're going to be visualizing so this is the jewelry market you've seen this in other videos probably we have low-end Middle Market and high-end this is just based on pricing so 0 to 1,000 1,000 to about 7500 and 7500 and up would be highend we've got Fine Jewelry we've got Bridal hipop craft jewelry cultural jewelry and art jewelry the grade out areas are where you wouldn't want to go as a custom jeweler most likely we'll do longer videos at a later time but just understand that any of these cells are where customers are paying for jewelry at a certain price and they behave a certain way and your competitor is living in these spaces whether they realize it or not and you are living in these spaces whether you realize it or not these are the places where your customer is hanging out it's about harmonizing with a particular Market segment and style seg segment for jewelry to find where customers already are and sell to them and you're going to be competing with other people in these spaces next we've talked about the brand prism before I've got a whole long video about the brand prism but you have to realize that your competitor whether they realize it or not has a brand prism too so physique would be like their logo and colors personality is their brand voice culture is how is the emotional energy behind the closed doors of that business and how is it affecting their customers self-image is who does their customer get to become when they buy from that brand reflection is the perfect customer Avatar and how the brand is reflecting that to the customer and relationship is the relationship between the brand and the customer so it's going to be very important for you to understand that you have a brand prism and every brand has a brand prism so there might be ways that you can maneuver around a competitor based on how they've chosen to position their brand within the market you see by having this awareness when your competitor doesn't have this awareness you're already gaining an advantage and then finally we have a USP unique selling proposition that just comes down to what makes your jewelry unique are you selling the same basic fine jewelry that everyone else is selling or is there something new and exciting about your brand how you've positioned your brand to make it unique and that is funneling down into the products so that the products themselves are like a microcosm of the unique brand that you've created within the market you see it's a lot easier to understand this stuff when you can put your eyes on it so the question is how do you actually compete with somebody else in the jewelry market with intention for one you're going to know that they have a market segment then you're going to know that they have a brand prism and they are going to have a unique selling proposition for their jewelry or not maybe they're just blending in and they're completely commoditized and there is no unique selling proposition in your competitor and that's often times the case this is a hard thing to solve so let's put it into a real world context say we were talking about Fitzgerald's Fine Jewelry established 1964 we've got Melanie Fitzgerald here and she's a third generation Jeweler inherited the business from her father they're in a Major Market like New York City or maybe Chicago and this has been around for Generations this person has been selling engagement rings and all manner of Fine Jewelry and you're new and you have to find a way to maybe be competing with fitzgeralds how are you going to do that you're brand new you've been around for 2 years years they've been around since 1964 what are you going to do well it is the new jewelry industry before it was really really hard to get in the game and compete against somebody that's been around since 1964 50 plus years of experience well beyond that at this point now in the old world of the industry it would have been practically impossible to go in and compete with a third generation Jeweler but with everything everything happening in lab diamonds and eCommerce and artificial intelligence it's no longer an advantage to be the multi-generation Jeweler because they have a lot of habits that are getting disrupted one of them is getting disrupted In This Very video the establishment of their brand their placement in the market the type of goods that they sell every bit of that is getting rocked right now as you're watching this in this video because the rules have changed so we have to be thinking how can we take full advantage of the technology of our time and gain some type of Leverage over Fitzgerald's so if you're new to my content you can check out Jewelers advantage.com we're going to be working with a tool that you can get for free at Jewelers advantage.com as we move over into Jewelers Advantage so here we are we've got the AI tool the very first thing I would do I'm just going to show you this live I've got a prepared image of fitzgeralds and I would say something along the lines of this is a family jewelry store that has been in business for three generations they sell fine jewelry and focus on natural diamonds they are located in [Music] Chicago the brand is called fitzgeralds what is the brand prism for this business the reason we would want to start start with the brand prism is it's going to give us the most comprehensive view of this business possible within just a few moments this is going to account for the market segment of the brand we'll be able to see exactly what they're trying to do here in a second we could always ask about Market segment as well but basically if you can get your head around the brand prism of a competitor you're really going to have their number especially if you have accurate information in regards to their customer Avatar so here we've got the physique we've got personality we've got culture we've got relationship self-image and reflection so just to keep it kind of quick the tangible aspects of the brand are particularly their natural Diamond collection the physical presence in Chicago also contributes to its physique very good it's probably fair to say that Fitzgerald would likely embody the personality of a classic sophisticated and reliable family Jeweler so glancing through this I see some interesting things like most Family Jewelry Brands there's not anything really standing out that's making this Tiffany or cardier it's essentially saying that they're focusing on quality fine jewelry pieces particularly their natural Diamond collection hm that might not be on sturdy ground anymore something that I found particularly interesting in here was the customers who choose fitzgeralds likely see thems as connoisseurs of fine jewelry who appreciate the Heritage and authenticity of natural diamonds that is about to be disrupted over the next few years as Baby Boomers exit the market and Millennials and gen Z still have a lot of mileage on the type of jewelry that they'll buy but don't necessarily care about natural diamonds so you'd want to focus on that if you were analyzing this competitor especially in regards to self-image how does this customer see thems when they buy Fitzgerald in this case it's saying they see themselves as connoisseur a fine jewelry who appreciate the Heritage and authenticity of natural diamonds if that is no longer a value in the market this business would be in a lot of trouble so I'm not going to go through the whole brand prism because you could do this with anybody and read it for yourself but this is basically hitting the broad Strokes of a typical Family Jewelry Store the next thing that I might ask is what is the customer avatar for fitzgeralds what this is going to do is this is going to give you the demographics and psychographics of the people that shop at this type of business now in this case this is Fitzgerald's a fictitious jewelry business you can do this with real jewelry businesses that's kind of the idea but here we can see that the AG is likely between 30 and 60 they appeal primarily to women based in Chicago they're going to be affluent likely at the top income quartile with substantial disposable income any of these areas you can then feed back into the AI and ask it to expand upon any of these particular ideas to find the right marketing message for this Avatar so we're getting demographics here demographics is going to focus on statistics that you would see in things like the psychographics is more about how they think so if you can combine these ideas into your marketing you could in theory go right after the Fitzgerald's customer we've got things like behavioral patterns so what are their shopping habits what is their media consumption what do they tune into and watch that informs their thinking what brands are they loyal to we're also finding things like their motivations and goals what are their life goals what are their motivations for making a purchase things like the challenges that they face when shopping for jewelry and essentially you've got a really really good idea of who this customer is so this is just the really fast version I wanted to give you an idea that if you went brand prism you're automatically going to figure out what the market segment is and what a possible brand prism is for the company that you're trying to compete against once you dig into the customer Avatar a little bit more you're really going to figure out who this business is selling to then you can start thinking how might I sell to this Avatar in my own unique way and then you can start asking questions like I am a jeweler that is just starting [Music] out how can I create a unique selling [Music] proposition for my own fun jewelry that could compete with fitzgeralds so as this is coming together if you have never approached this idea before you're getting really high level Consulting from the AI so Jeweler's Advantage is telling you to identify your ideal customer analyze your competitors so you'd be able to feed in any text back into the chat window and have it give you lengthier responses in any particular category that's going to be aligned with our Frameworks in the back end for developing a business across product marketing sales operations and finance so everything is comprehensive if this is new to you you're getting kind of the training wheels for how you could go about looking out into the market seeing who your competitors are and then taking the fear Away by demystifying everything that's going on potentially in their business you'll at least have the framework and the lens to see the market through we're going to be able to see things like highlight what makes your brand unique so are your designs original how is your craftsmanship and materials what do you offer in terms of customization and personalization what is your customer experience what is your price point how is that Landing you in the market and building a perception in your brand because of the pricing and then are there any sustainable practices that you could maybe promote that are going to appeal to the Gen Z and Millennial customers that that family store might be ignoring so things like defining your values testing the concepts of product so coming up with designs with AI perhaps putting them out on social media and see what people like what they don't like and then use that feedback to form what your unique selling proposition is going to be so an example of that could be at your brand each piece tells a story hm our handcrafted jewelry made from reclaimed vintage materials offers a BL blend of Timeless elegance and modern sensibility perfectly suited for the econscious trend Setter that sounds like a millennial or genz type customer so that's how you can get started analyzing the market and determining who your competitor is remember your competitor deserves to have a dream too so use this responsibly and in fact it is being a responsible business owner to know who you're competing against and know where you are in the market and know how going to go play the game the right way so again my name is Jesse Korby this is Jewelers Advantage head to Jewelers advantage.com if you want to try out the tool that you saw in this video it's a huge huge advantage to you there's a reason we call it what we call it and if you want you can check out the other videos where we Design jewelry build a 30day marketing calendar among other things that this can do this is the new jewelry industry again my name is Jesse Korby at Jew his advantage and we'll see you in the next one