Product customization has been supported in the retail environment for a very long time and now the retail omni market tools and capabilities expand and enhance these capabilities to a level that will allow imaginative manufacturers and retailers to partner for all new levels of customization. I see these opportunities and potential to expand as one more very important means to improve the efficiency of product lifecycle and replenishment while simplifying the sales and delivery of goods and services to support changing consumer lifecycle demands. The cycle of demand and change velocity has been increasing almost exponentially over the past couple of years to the point where it is hard to keep up with the velocity of change. The expansion of mass customization provides a method and means for manufacturers and retailers to keep up with the change.
It is only a matter of time now before manufacturers develop the means to efficiently provide mass customization services for most products. This next round of retail change will very likely be led by manufacturers through enhanced collaboration with retailers and especially with enhanced direct interaction with consumers. The danger for retailers now is that manufacturers will edge out the consumer relationship through direct interaction and engagement in producing the customized product. Manufacturers have the tools to interact directly with consumers in a new sales channel for manufacturers that allows the manufacturer to interact directly with consumers to collaborate directly in product development activities. The next logical step for the manufacturer is the expansion of the consumer relationship for the direct sales of their products.
Many manufacturers already provide a sales channel outlet for consumers to shop and purchase products and customized products offered by the manufacturer. This is where retailers need to focus in this next wave; support the consumer interaction and consumer relationship to promote these mass customization offerings. Retailers can run the real risk of being edged out by manufacturers and leading omni market mass retailers like Amazon and Alibaba if they do not focus on enhanced consumer relationships and collaboration.
Retailers currently have a distinct advantage as far as the consumer relationship is concerned but this advantage has been diminished over the years by the expansion of technology and the ability to interact directly with the all partners in the supply chain. This direct interaction has enhanced the ability of retailers to quickly react to support demands such as enhanced delivery services. The technology though can also be the means of the retailer downfall if the retailer does not focus on the consumer relationship and collaboration. Retailers have always excelled at the consumer relationship aspect of the retail market through human interaction and personalized direct relationship management. This is in the process though, of being turned upside down as a result of technology and the consumer embrace of this technology.
The challenge for many retailers now is developing the practices and procedures to support the enhanced collaboration to support the necessary interaction, planning and execution capabilities to deliver on the mass customization demands of the market. Retailers must now add enhanced relationship development and management and enhanced collaboration practices with other partners supporting the market in order to maintain a significant place in the market. Consumers will flow to the most efficient shopping, purchasing and delivery methods and retailers must provide the glue that connects the partners in the extended retail supply chain.
No comments:
Post a Comment