I recently read this German article and thought I’d summarize it here for everyone:
The article justifies its existence by stating first that mass customization seems to be taking over - it seems like every product has a customized cousin available somewhere. [Keep in mind that this is Germany - there are truly many more customized products].
CUSTOMIZATION BY STARTUPS
As mentioned in a blog post by yours truly, the article agrees that startups are more likely to offer mass customization - because they can focus on a specific niche. The prominent example is mymuesli.de, a German custom cereal company that is in fact a great example to all of us mass customizers.
POWER TO THE CONSUMER!
The article hypothesizes that this trend is part of a larger trend - that of customers gaining power in the consumption process. As competition increases, especially with the help of online offers and the comparison of them, consumers can increasingly demand exactly what they want. Mass Customization is the natural answer.
CHALLENGE: INTERACTION
But there’s a challenge - do you know what your customer wants exactly? Not every company is sufficiently in touch with their customer to correctly identify the modules and options within the customization process. Also, too many options lead to what experts often call “mass confusion” - avoid! The article describes how this need to understand your customer and to interact creates additional transaction costs.
VIRAL MARKETING AND SPECIFIC NEEDS
On the other side though, there’s a big advantage for a company that offers mass customized products - those products are something truly special to the consumer who created them him or herself - and thus s/he will talk about it! Word of mouth marketing happens naturally.
An interesting thought - some customers are only able to consume certain products thanks to mass customization. Think of people with allergies, or feet with different sizes. Mass Customization eases their shopping experience significantly.
ADVANTAGES OF MASS CUSTOMIZATION TO CUSTOMER AND PRODUCER
In total, the article mentions the following three reasons to consume customized products:
- The joy of creating your own product and of using it
- Functionality (e.g. shoes that fit both your feet, or taste in the case of food)
- Self-expression
These attributes increase the value of the product, which allows for higher prices. Besides that, mass customizers don’t produce before they receive an order, increasing efficiencies and easing cash flow problems. (read: the perfect model for a startup!)
THE FUTURE
And all this wouldn’t be possible without our friend, the internet. Only here can producer and customer-with-precise-wishes get together in an efficient way. And that’s why it took so long to pick up, although experts predicted the rise of mass customization ten years ago.
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Future of Mass Customization, oh hello!
Etsy’s Alchemy product is distributed mass customization, which is pretty spectacular. Tell the community what you want created (and asking price), and people will bid for the right to fulfill your request.
