It’s been almost 100 years since Henry Ford made the famous statement: “You can have a Model T in any color you want, as long as it’s black”. Since then, a continuous homogenization of retail brands, products and the consumer experience has taken place through mass production and globalization.

However, the convergence of the Internet with new flexible manufacturing techniques and other new technologies has helped usher in an exciting new era for consumer brands and marketers who wish to address individual consumers as markets of one. Marketers can achieve this goal most effectively using mass customization—the idea that products can be tailored to the preferences of individual consumers at near mass production speed and efficiencies.

DemandMade was founded to help companies deliver on the promise of mass customized and customer made products. We help develop and execute successful programs that not only satisfy the wants and needs of individual consumers, but also deliver on the objectives of our clients.

Markets of One

The Internet represents perhaps the most exciting opportunity in the history of retail merchandising—not only does it permit brands to reach large markets, it also enables a dialog to take place between marketers and individual consumers. As e-commerce continues to evolve, we believe the concept of mass customization is more than an industry buzzword or merchandising gimmick, but a market inevitability that is already being driven by consumer demand.

When consumers stop passively consuming pre-configured products and begin to actively participate in the creative process, they become what futurist Alvin Toffler described as Prosumers. Creating and sharing design possibilities, Prosumers not only get products tailored to their own wants and desires, they also provide retail intelligence that can be useful in the development of mass produced goods destined for more traditional channels of distribution.

Although Prosumer behavior is present across many demographics, it is particularly suited to Generation Y consumers—the most wired and technically savvy generation in history. Larger than even the baby boomers, Gen Y is the first generation to grow up with the Internet, cell phones and other wireless devices that provide access to a dizzying array of choices. As this generation matures as an economic force, they will continue to help redefine the consumer experience.

Mass Production vs. Mass Customization

Every merchandiser strives to develop products that create loyal and satisfied customers. Because these efforts are usually directed at markets rather than individuals, the development and manufacturing of these products is often achieved through product standardization and mass-production. These efforts often deliver the lowest possible unit cost, but usually do so at the expense of sameness and flexibility in an ever-changing marketplace.

By combining the Internet with other new technologies and flexible manufacturing principles, many consumer products can be efficiently produced or configured on demand and still deliver strong profit margins. Although the consumer may not recognize the difference, most mass customization programs are based on some level of product modularity and are actually configured to order from components rather than manufactured from scratch. As a result, successful programs are not always dependent on radical changes in the supply chain—they start with changing the way brands and marketers think about the consumer.

Why Mass Customization?

The reasons for implementing a strategy of mass customization vary dramatically, but can include reduction in inventory, increased product assortments, collection of retail intelligence on consumer behavior and brand positioning. We work with each of our clients to examine and evaluate mass customization strategies within the context of their own business environment.

When they’re ready to launch a program, our DemandMade application platform helps define and manage the standards needed to extend these dynamic products across supply chains, giving brands control over channels of distribution, the configuration process and the consumer experience.

The Future is Now

Although the term mass customization was coined by Stan Davis nearly 20 years ago, it is being successfully utilized today by start-ups and established companies alike in a variety of industries. As online retailing continues to evolve, we believe Prosumer behavior will fuel the ongoing development of retail strategies that can address markets of one. While not appropriate for every market segment or product line, these principles are here today and they’re already revolutionizing the way brands and consumers interact with one another.