The term mass customization is derived from the combination of the two apparently contradictory terms "mass production" and "customization". Simply stated, the aim of mass customization is to tailor-make products for individual customers at a cost comparable to mass production.
Combining "custom manufacture" and "mass production", mass customization promises to bridge the gap between individual customers' high expectations and cost pressures faced by manufacturers. Emphasizing direct interaction with customers, it is also often considered an ideal basis for customer relationship management (CRM).
But these advantages come along with considerable challenges:
Main advantages
- Differentiation through individuality
- Reduced capital commitment and less overproduction
- Better knowledge of customers' needs
- Higher customer loyalty Shopping as experience
Main challenges
- Efficient interaction with customers
- Setting possibilities and limits for customization
- Intelligent product modularization