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.

  •   23 October 2018
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Australia's retirement system works brilliantly for some - but not all

The superannuation system has succeeded brilliantly at what it was designed to do: accumulate wealth during working lives. The next challenge is meeting members’ diverse needs in retirement. 

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

The 3 biggest residential property myths

I am a professional real estate investor who hears a lot of opinions rather than facts from so-called experts on the topic of property. Here are the largest myths when it comes to Australia’s biggest asset class.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

Latest Updates

Investment strategies

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Investment strategies

21 reasons we’re nearing the end of a secular bull market

Nearly all the indicators an investor would look for suggest that this secular bull market is approaching its end. My models forecast that the US is set for 0% annual returns over the next decade.

Property

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Investment strategies

Market entry – dip your toe or jump in all at once?

Lump sum investing usually wins, but it can hurt if markets fall. Using 50 years of Australian data, we reveal when staging your entry protects you, and when it drags on returns. 

Investment strategies

The US$21 trillion question: is AI an opportunity or excess?

It has been years since the US stock market has been so focused on a single driving theme, and AI is unquestionably that theme. This explores what it means for US and global markets in 2026.

Economy

US energy strategy holds lessons for Australia

The US has elevated energy to a national security priority, tying cheap, reliable power to economic strength, AI leadership, and sovereignty. This analyses the new framework and its implications for Australia.

Strategy

Venezuela’s democratic roots are deeper than Trump knows

Most people know Maduro was a dictator and Venezuela has oil. Few grasp the depth of suffering or the country’s democratic history - essential context as the US ousts Maduro and charts Venezuela’s future. 

Sponsors

Alliances

© 2026 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.