Strategies for Surviving the Retail Apocalypse: Customization
In our first and second installments we examined how companies are using Customer Experience Design and Convenience as strategies to survive the “Retail Apocalypse.” In this installment, we look at the novel strategies companies are using to customize products and experiences for customers.
Consumers have more choices than ever. The average consumer has far more sophisticated tastes and is more knowledgeable about what they purchase than even ten years ago. Chinese citizens have more purchasing power than ever and they love to purchase quality European and American goods. Mass market goods may have helped feed and clothe the Baby Boomer generation, but now the target demographic is far more discerning.
New retailers that provide customized products and experiences are trying to establishing themselves as more than just niche. Customers can design their own shoes, their own clothes and even their meal plans all at the click of a button. They can input what they want into a website and receive a box full of products tailored to them and their lifestyle. Customers are more comfortable having their clothes custom tailored. Custom tailored goods are not a new concept, especially for the very wealthy, but new technology is making it more cost effective for customers of more modest means to have clothing custom fitted just to them.
Old and new technologies are helping to transform the retail space from mass market goods to customizable products. Retailer Ministry of Supply uses NASA technology to create innovative clothing. They recently debuted their “3D Print Knit” online and in select retail stores. These clothes are definitely not for everyone as the designs are made for the more modern, athletic consumer.
Consumers have been entering their customization preferences into online interactive product configurators for years but now these tools are now far more agile. Consumers used to be limited to a few customization options which often required the assistance of a human salesperson. Now, because of product visualization tools and more adaptive software, it is easier and more fun for consumers to customize their online purchases. Online retailer Shoes of Prey uses these tools to allow customers to customize shoes and through the product visualization, consumers can view their purchase and the site displays the visualizations on their “trending now” page as inspiration for other consumers.
Recommendation engines are another older technology that are being used to aid in customization. Instead of just recommending another product based on a previously purchased product, recommendation engines can be employed to recommend customized ingredients, colors and styles.
3D Scanners can take better body measurements than even the most seasoned tailor. Companies like Styku are can provide 3D body shape and measurement visualization to be used by fitness companies, medical and aesthetic purposes, weight loss, and made-to-measure clothing. Mostly, the company is catering to the medical industry, but they are poised to help retailers move into the future of customized clothing.
Flexible manufacturing systems help make these customized products possible in a cost-effective way. Ironically, the auto industry is at the forefront of this movement away from mass manufacturing. Ford and General Motors have invested in automation that can retool itself automatically with a series of interchangeable machinery without slowing down the production line. This technological innovation can help manufacturers customize even more products at a lower cost in the future.
3D printers are more sophisticated and less of a novelty product. At Retail’s BIG Show, Jodie Fox, co-founder and chief creative officer for Shoes of Prey, talked about the benefit of on-demand manufacturing and 3D printing capabilities: “You can have infinite SKUs without the hassle of having all this inventory sitting around.” 3D printing is helping manufacturers bring goods to market faster and helping retailers provide customized products that consumers demand.
You can have infinite SKUs without the hassle of having all this inventory sitting around — Jodie Fox, co-founder and CEO Shoes of Prey
The takeaways from a customization strategy is that customers will continue to seek out ways to customize the products they want. Mass market products, including fast fashion from popular stores like H&M, could become less and less popular over time in exchange for products with multiple functions or custom designs. Technology for rapid prototyping and customized manufacturing is becoming more affordable. The data and feedback collected either explicitly from customers or through their behaviors should be used for research and development of new products and customer experiences.
View our Retail Case Studies on SlideShare.
