Forrester Research Predicts Mass Customization as “Future of Products”
Last Month, Forrester Research released an informative and well researched report on Mass Customization. In it, they write that “after a variety of false starts, its time has finally come”.
In the following and in upcoming blog post, I will summarize the report. However, if you are serious about this topic, I advise you to consider purchasing the Forrester Report directly (and no, I don’t get anything for saying that).
The report begins by referring to the many times that mass customization has been predicted as the future. Joseph Pine published his book about Mass Customization in 1993, that’s soon 20 years ago!
However, the Forrester Report suggests that Mass Customization has “hit an inflection” point now, due to new customer facing technologies that are raising consumers’ expectations, are cheaper and will be even more amazing (and enabling) in the future.
The report then proceeds to outline how there’s a historic continuum that can be observed - from crafting to mass production to… mass customization.
One of the tremendous benefits of Mass Customization that the Forrester Report points out is the new type of “relationship to the consumer” that can be created. A more personal, more loyal, and more profitable relationship.
So why has it taken so long for mass customization to take hold? “Failures of execution, not concept” is Forrester’s answer, and they list four main reasons: Incomplete implementations that didn’t take consumer demand for choices and the solution space into account, the inability of customization companies to manage costs (Dell is quoted as an example), the immaturity of digital experiences as well as nonlocal manufacturing that doesn’t lend itself to on-demand manufacturing without increasing delivery times too much. Finally, the report also suggests that the Paradox of Choice has been one of the forces driving against mass customization.
Forrester then warns that if product strategists at big companies don’t seize this opportunity now, they can expect their competitors beat them to market with customized products. “Now is the time…”. Yet, Forrester acknowledges that it is the small companies, not the big companies, that are really drive a lot of the mass customization to date. Categories include food, apparel and shoes, home decor, smartphone cases and media (such as Pandora).
Stay tuned for my next blog post on the recommendations Forrester gives to companies that are considering mass customization as a product strategy.