The act of producing products and services that are affordable and tailored to meet the demands of target clients is known as mass customization. Mass customization brings the personalization and versatility of made-to-order business manufacturing to a different level of high-volume production, where the unit cost is lower. As a result, instead of targeting a single customer, mass customization targets various large consumer groups.
Low-cost and high-volume production are combined in the mass customization technique. Customers are given a set of predefined features that they can customize according to their preferences. Depending on the preferred specifications, the price of the finished customized product may rise or drop from its base price. In addition to manufacturing, this customization method has shown to be quite successful in the service industry.
The use of mass customization as part of a company’s marketing strategy can then be quite profitable. Customization allows businesses to have an edge over their competitors. They can sell to consumers with their ability to make a semi-custom product at an affordable price. The company has an opportunity to grow sales, earnings, and customer loyalty for their unique products as long as they can offer a product that doesn’t compromise on quality.
To make the customization process easier, manufacturing companies utilize available information as well as efficient processes. Managers, on the other hand, have realized that mass customization is associated with excessive complexity and cost like mass production. Such risks are associated with a lack of proper research before implementing a business strategy.