McKinsey’s report The State of Fashion 2020 forecasted the year “would open with the industry in a state of high nervousness and uncertainty, with most executives across fashion and the wider business world bracing for a slowdown in growth in the global economy”; “uncertainty” is definitely the keyword that better described the outcome.
As stated in the 2021 edition of the report, disruption accelerated responses that lead into positive outcomes, meaning “many fashion companies had to reshape their business models, streamline their operation, and sharpen their customer propositions[1].”
Customization, a concept that we’ve probably heard more than once in different business environments during the last year, has become one of the strategies to face the challenge of fighting for value, reducing inventory and dealing with the fact that “less is more” because more products do not necessarily yield more profits.
When thinking of fashion, tailor-made garments and shoes are between history and tradition, however, not so long ago it was the standard for selling clothes.Made-to-order, small batch and other customized production processes made a comeback in 2020, allowing the customer to have an active role at a certain phase before purchase. The trend started as an emerging issue a couple of years before, with the debate around a more considered approach to consumption looking for fewer and more lasting purchases.
As McKinsey’s report stated, the pandemic forced a lot of businesses to rethink everything and look for greater connection with their customers, even when traditional retail had to shift into e-commerce and digital platforms. Matching these needs with a more ethical approach turns into a competitive advantage for a certain niche of clients: offering a reduction of waste, better fitting, and participation in the process.
This trend is not for every company or fashion brand, it is on the opposite side from fast fashion because the model implies moving from automatization into craftsmanship at least at some stage, a more demanding communication with the client and longer production times.
However, if someone is planning to create a new brand; enduring revenue problems due to inventory; or is considering making a shift into their business model, now it’s a good time for working on a viable business plan.
It’s important to notice that in order to be scalable, a brand has to consider a hybrid customized product: basic sizes and custom-made details, basic models and different patterns, and so on. Otherwise, there is a risk of reaching maximum capacity in a short period of time.
For companies like Dessus Lingerie, a Mexican lingerie brand that sells worldwide entirely through e-commerce, shifting its business model from stock into a combination of “made to order” with custom-made details was the more reasonable decision to fulfill the value proposition and optimize revenue. Since the beginning of the company Ana Velázquez, the designer, envisioned a high quality product made to last in which every woman feels comfortable with themselves.
“One of the core values of the brand has always been the customization of key elements like fitting, however at the first stage of the company I tried to replicate the traditional business model of a bigger brand, which meant production in series for every collection. Soon, and painfully, I realized that it was both a financial and sustainable mistake”, said Ana while being asked about the previous business model.
After realizing that this way of work generated more waste on product cut, unsold stock pieces, and therefore less revenue, Ana made an iteration on the process and decided to produce only the pieces requested previously by clients and customize them as much as possible, considering fitting, fabric, colors and, since 2020, shapes. The clients perceived the changes in a positive way, with an increased sense of exclusivity and quality.
According to Ana, her customers are more willing to be patient in terms of production and delivery timing, due to the fact that they value the uniqueness of buying something that has been made following their requests and needs. Every collection has a reduced number of pieces, to avoid unnecessary waste, as well as keeping the models exclusive.
When being asked about the challenges of this kind of business plan, Ana replied that the first step is to understand that shifting into a 100% custom-made production might not be viable in terms of building a sustainable business. Adding up to the answer, she specified that from her perspective an entirely custom-made garment will be more similar to the experience of going to the tailor, where the client decides everything: from the design to the materials.
In Dessus she focuses on a 90%-10% balance: the client has the possibility of customizing 90% of the product while the other 10% is predetermined by the brand this includes patterns, certain shapes, design and potential fabric options to choose. Her advice is to find the “sweet spot” for your own company, where the clients feel happy with the outcome.
Another challenge to face is dealing with how accustomed we are to immediate satisfaction, especially when buying through e-commerce. Some customers want answers 24/7 and express delivery, those might not be for this kind of model, at the end of the day this trend means embracing slow fashion and having a deeper knowledge about the product you are getting.
Beyond the technical aspects of this model, communication becomes a very important feature in client service to manage expectations and understand the best way to optimize your process and maintain the business healthy.
As McKinsey’s report stated, the pandemic forced a lot of businesses to rethink everything and look for greater connection with their customers, even when traditional retail had to shift into e-commerce and digital platforms. Matching these needs with a more ethical approach turns into a competitive advantage for a certain niche of clients: offering a reduction of waste, better fitting, and participation in the process.
This trend is not for every company or fashion brand, it is on the opposite side from fast fashion because the model implies moving from automatization into craftsmanship at least at some stage, a more demanding communication with the client and longer production times.
However, if someone is planning to create a new brand; enduring revenue problems due to inventory; or is considering making a shift into their business model, now it’s a good time for working on a viable business plan.
It’s important to notice that in order to be scalable, a brand has to consider a hybrid customized product: basic sizes and custom-made details, basic models and different patterns, and so on. Otherwise, there is a risk of reaching maximum capacity in a short period of time.
For companies like Dessus Lingerie, a Mexican lingerie brand that sells worldwide entirely through e-commerce, shifting its business model from stock into a combination of “made to order” with custom-made details was the more reasonable decision to fulfill the value proposition and optimize revenue. Since the beginning of the company Ana Velázquez, the designer, envisioned a high quality product made to last in which every woman feels comfortable with themselves.
“One of the core values of the brand has always been the customization of key elements like fitting, however at the first stage of the company I tried to replicate the traditional business model of a bigger brand, which meant production in series for every collection. Soon, and painfully, I realized that it was both a financial and sustainable mistake”, said Ana while being asked about the previous business model.
After realizing that this way of work generated more waste on product cut, unsold stock pieces, and therefore less revenue, Ana made an iteration on the process and decided to produce only the pieces requested previously by clients and customize them as much as possible, considering fitting, fabric, colors and, since 2020, shapes. The clients perceived the changes in a positive way, with an increased sense of exclusivity and quality.
According to Ana, her customers are more willing to be patient in terms of production and delivery timing, due to the fact that they value the uniqueness of buying something that has been made following their requests and needs. Every collection has a reduced number of pieces, to avoid unnecessary waste, as well as keeping the models exclusive.
When being asked about the challenges of this kind of business plan, Ana replied that the first step is to understand that shifting into a 100% custom-made production might not be viable in terms of building a sustainable business. Adding up to the answer, she specified that from her perspective an entirely custom-made garment will be more similar to the experience of going to the tailor, where the client decides everything: from the design to the materials.
In Dessus she focuses on a 90%-10% balance: the client has the possibility of customizing 90% of the product while the other 10% is predetermined by the brand this includes patterns, certain shapes, design and potential fabric options to choose. Her advice is to find the “sweet spot” for your own company, where the clients feel happy with the outcome.
Another challenge to face is dealing with how accustomed we are to immediate satisfaction, especially when buying through e-commerce. Some customers want answers 24/7 and express delivery, those might not be for this kind of model, at the end of the day this trend means embracing slow fashion and having a deeper knowledge about the product you are getting.
Beyond the technical aspects of this model, communication becomes a very important feature in client service to manage expectations and understand the best way to optimize your process and maintain the business healthy.