Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 277

When customised solutions ruin a company

File 20180911 144473 vevp5a.jpg?ixlib=rb 1.1

File 20180911 144473 vevp5a.jpg?ixlib=rb 1.1

It’s tempting to design your own shoes, but it takes time. Shutterstock

 

How could you go from winning awards for “Store Design of The Year” and “Best Shoe Ever” to selling nothing?

In 2009, the Australian startup Shoes of Prey set out to make exactly the shoes its customers wanted. Customers could pick the designs, sizes and exact specifications, and Shoes of Prey would deliver exactly what they ordered.

They wouldn’t make shoes no one needed. Traditional retailers use flash sales to move stock that has gone out of fashion. Or they burn or bury it. British fashion label Burberry says it has destroyed more than A$150 million worth of unsold clothes, accessories and perfume over the past five years.

Last month Shoes of Prey hit pause. Co-founder Jodie Fox went to social media to say it was considering its future and wouldn’t process any further orders. It had been unable to “truly crack mass market adoption”. If Shoes of Prey couldn’t, maybe no one can.

The pros and cons of mass customisation

Customisation can increase the perceived value of a product through the 'I designed it myself' effect, giving customers a sense of ownership as 'creators'. It can also improve the customer’s perception of the quality of the product. Research shows people are more likely to enjoy the taste of a meal made from a kit they used themselves than the taste of a meal made from the same kit in a store.

But there are downsides. Making choices is taxing. And the choices pile up. For shoes, size is probably the easiest, followed by colour, heel size, width, pattern and accessories. There are other judgements to be made. Should there be more than one colour? Will that choice look good? What will others think? And so on.

Having many roughly equal options to choose from is draining. The satisfaction we get from choice follows an inverted U curve. Having more options when there are too few makes us feel good, but having even more when there are already a lot makes us feel worse.

And then there’s the cost of time.

When customising, customers have to learn what is possible within the confines of the toolkit, test out different possible solutions, learn from their errors and pick the best solution. All of this takes time.

It’s a resource not everyone has. Research shows customers with the most free time are the most likely to appreciate the opportunity to make choices about what they buy.

Shoes of Prey’s mistake might have been to increase the range and complexity of its offerings too much. What started as customising high heels in 2009 became selecting styles of heels, flats, sneakers, boots and sandals with a multitude of options within each.

While loyal customers could keep up, for the average customer the choice was overwhelming. For some, it was easier to take the path of least resistance – a pair of off-the-shelf shoes.

Mass customisation today

Some retailers are persisting with mass customisation. More than 60% of online shoppers in the US are believed to have chosen, recommended or bought a brand that provides a customised experience or service. Interestingly though, 42% wanted to customise from a list of options and be 'led by the brands' rather than start from scratch.

So-called 'customisation via starting solution', where customers choose from an initial option closest to their desired outcome and then refine it to their needs, has been found to enhance satisfaction, decrease the perceived complexity of the customisation and result in more feature-rich products being customised.

An example of a brand currently making headway is Choosy, a new, fast-fashion brand that draws its inspiration almost exclusively from the top-trending posts on Instagram. Releasing 10 styles a week, it gives customers just a few days to order before they go into production. By creating only pieces customers have committed to buying, it avoids building up surplus stock and leverages the upside of mass customisation while minimising the downside.

Does it have a future?

The waste in mass production of fashion items is unsustainable in the long term, from both an economic and social standpoint.

Shoes of Prey broke ground with its innovative business model of delivering customised shoes through on-demand manufacturing, but faced challenges in convincing customers to make the necessary choices to customise a product.

If brands can tackle the barriers to customisation, reducing the cost to customers in time and choice as Choosy has done, then mass customisation could have a future.The Conversation

 

Jessica Pallant, Lecturer in Marketing, Swinburne University of Technology and Sean Sands, Associate Professor of Marketing, Swinburne University of TechnologyThis article is republished from The Conversation under a Creative Commons license. Read the original article.


 

Leave a Comment:

banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Latest Updates

Planning

Will young Australians be better off than their parents?

For much of Australia’s history, each new generation has been better off than the last: better jobs and incomes as well as improved living standards. A new report assesses whether this time may be different.

Superannuation

The rubbery numbers behind super tax concessions

In selling the super tax, Labor has repeated Treasury claims of there being $50 billion in super tax concessions annually, mostly flowing to high-income earners. This figure is vastly overstated.

Investment strategies

A steady road to getting rich

The latest lists of Australia’s wealthiest individuals show that while overall wealth has continued to rise, gains by individuals haven't been uniform. Many might have been better off adopting a simpler investment strategy.

Economy

Would a corporate tax cut boost productivity in Australia?

As inflation eases, the Albanese government is switching its focus to lifting Australia’s sluggish productivity. Can corporate tax cuts reboot growth - or are we chasing a theory that doesn’t quite work here?

Are V-shaped market recoveries becoming more frequent?

April’s sharp rebound may feel familiar, but are V-shaped recoveries really more common in the post-COVID world? A look at market history suggests otherwise and hints that a common bias might be skewing perceptions.

Investment strategies

Asset allocation in a world of riskier developed markets

Old distinctions between developed and emerging market bonds no longer hold true. At a time where true diversification matters more than ever, this has big ramifications for the way that portfolios should be constructed.

Investment strategies

Top 5 investment reads

As the July school holiday break nears, here are some investment classics to put onto your reading list. The books offer lessons in investment strategy, financial disasters, and mergers and acquisitions.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.