Business Strategies Supporting Mass Customization

Apparel Industry Management 3(3+0)

Lesson 43 : Mass Customization

Business Strategies Supporting Mass Customization

Mass Customization can be used to support different business strategies.

Customization is the norm
Customers are given the opportunity to configure their product. This has been a common strategy in the furniture sector (e.g. sofas). Some customers may select a recommended version and the company may speculate by stocking popular configurations, but the underlying strategy is to offer every customer a choice.

Customization for premium products and brand building
The principle underlying this strategy is that customers are willing to pay more for a product that satisfies them more. Compared to (lower priced) standard products, the customizable product can have the potential for greater satisfaction by: having a better physical fit; a bigger choice of functions; more attractive styling options, and so on.

It is not only the customizable attributes of the priced) standard products, the customizable product can have the potential for greater satisfaction by: having a better physical fit; a bigger choice of functions; more attractive styling options, and so on.

It is not only the customizable attributes of the product that give it its premium status, but also the buying experience. A customer can be engaged in the buying process for a considerable time and a well-designed experience enhances the brand. As an example Adidas is using this model to customize its offer.

Customization for market intelligence
A benefit of allowing customers to configure their product is that the company can find out not only how customers are reacting but learn from them. Rather than pay for market research, why not allow customers to customize their products and thereby tell you what trends are finding favors and what innovations they would like to see in your products?

Customization creates new services
By allowing customization, a company can expand its market and create new services

Criticisms of Mass Customization
As MC has risen in profile it has attracted criticism. The major criticisms are that one, It is not applicable to every industry. Thus expert advice against its use in Auto industry. Second, it is very difficult to elicit customer’s specification. Thus a consumer may not be able to articulate his needs very well.

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Last modified: Tuesday, 29 May 2012, 10:29 AM