Making it personal – One in three consumers wants personalised products
27 July 2015
Mass personalisation is set to become a reality, with 36% of consumers saying they are interested in personalised products or services, according to research by the business advisory firm, Deloitte. Those under 40 are more interested, with 43% of 16-24 year olds and 46% of 25-30 year olds attracted to personalised goods and services. This desire contrasts with a relatively low take up so far, only one in six of consumers have ever bought these products or services.
Ben Perkins, Head of Consumer Business Research at Deloitte commented: “Businesses have not only developed the capabilities to measure specifically what each individual consumer wants, they are now in a position to link their processes and resources to provide it. Flexible manufacturing and 3D printing enable mass personalisation at lower costs, allowing manufacturers to rethink their supply chains radically.
“Businesses are now postponing production until the latest point possible to allow individual customisation. Beyond the ability to provide more customised products, postponing production can help reduce inventory levels and ultimately increase efficiency. We believe the low take up so far is down to availability, and suggests an advantage for the first mover. Beyond the mass customisation of products, personalisation is already playing an important role across the market from online recommendations to bespoke suite and custom-built bicycles.”
The three product categories where customers have already made the most personalised purchases are holidays (25% of customers), clothing (19%) and furniture (18%).
“These three categories are where consumers want to actively contribute to the personalisation process or add a personal touch. If successful, businesses can simplify their range and benefit from more predictable levels of demand, and may even command a price premium. Of the consumers who expressed an interest in personalised products, 71% of them would be prepared to pay a premium.
“However, those businesses who do not offer an element of personalisation, risk losing revenue and customer loyalty over the longer term as customers increasingly demand personalisation.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.