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EBE 2020 The truth behind mass customization - Unlock customization business to drive profitability - Christian Möhring

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Christian Möhring
CEO & Founder madeone (ex-Nike, ex-Ikea)

Over the last decades large brands and companies were not able to unlock the full potential of mass customization. The complexity of customized products as well as the direct to consumer business challenges are main barriers. Mass customization has to be considered more than ever before as a relevant growth driver for many established e-commerce business models. A key to success is to take-out complexity through-out the end to end process. Christian will share his own experiences with enabling customization business working for large corporations as Nike and Ikea, SMEs and his company madeone, focussed on 'Customization as a Service'.

Founder of madeone is Christian Möhring who has a rich expertise in managing digital business models for world’s leading consumer brands. In his last role working for larger corporations as Head of Digital at IKEA, the Swedish life at home expert and world’s largest multichannel retailer for home furnishing products, he got exposed to one of the most valuable retail brands and highly efficient supply chains. From 2009 to 2014 he had the opportunity to work for the US Sports Brand Nike, in Germany and lastly on a European level, where he was responsible for Digital Brand and Commerce. At Nike he was also responsible for the strategic development and marketing of NIKEiD, Nike’s mass customization business. Before Nike, from 2006-2009, he got the exciting chance to built his first Ecommerce business including an own direct-to-consumer channel for the German glassware brand Leonardo. In 2015 he has founded the start-up helmade.com, a platform business model for customized helmets. Since 2019 he has evolved his company to madeone offering 'Customization as a Service' (CaaS) and as CEO he is now fully focusing on enabling brands and companies to unlock their customization business potential.

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EBE 2020 The truth behind mass customization - Unlock customization business to drive profitability - Christian Möhring

  1. 1. helmade@Schuberth | 10.07.2015
  2. 2. © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20 2
  3. 3. 3 ECOM BERLIN EXPO 2020 THE THRUTH
 BEHIND MASS
 CUSTOMIZATION. © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20 🔎☝
  4. 4. OUR DAILY CHALLENGE E-COMMERCE BUSINESS
 MODELS ARE COST INTENSIVE AND A RETURN ON INVEST IS COMING IN LATE IN THE GAME, IF IT EVER DOES. 4© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  5. 5. 5© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  6. 6. 6 A WAY OUT THERE HOW CAN YOU
 SURPRISE SOMEONE
 WHO HAS SEEN IT ALL? © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  7. 7. © 2020 madeone GmbH - Strictly confidential. 7 DREAM COMING TRUE madeone @ E-commerce Berlin Expo | Feb 20 HOW CAN YOU
 SURPRISE SOMEONE
 WHO HAS SEEN IT ALL?
  8. 8. 8 NIKE VS. ADIDAS madeone @ E-commerce Berlin Expo | Feb 20
  9. 9. CUSTOMIZATION IS NOT A TREND • Nowadays personalized products can be found in almost any area of life • There are many successful digital business models existing, from NIKEiD to cars • Web-based configurators are offering the customer endless possibilities to customize a unique product • Customers are willing to pay a significantly higher price for a personalized product • Customization will transform and change many established 
 e-commerce business models MEGA TREND? NOPE. 10madeone @ E-commerce Berlin Expo | Feb 20
  10. 10. CUSTOMIZATION PLAYS A ROLE IN MANY AREAS OF LIFE CUSTOMIZED EXPERIENCES 11© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  11. 11. 12© 2019 madeone GmbH - Strictly confidential.helmade Intro | Review 19 12© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  12. 12. 13 TODAY THE 
 CONSUMER DEMAND FOR A MORE PERSONALIZED PRODUCT & SERVICE 
 EXPERIENCE IS HIGHER THAN EVER BEFORE IT’S A FACT 13© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  13. 13. • 54% of consumers expressed an interest in purchasing personalized products or services • 41% of consumers who expressed an interesting in personalized products or service are willing to pay more than a 20% premium (insight: helmade.com > 50%) • 22% of consumers are happy to share personal data in return for a more personalized customer product or service • 40% of consumers who are interested in customized products or services expecting brands to offer a customization option Sources: Statista 2017 - Umfrage zur Individualisierung und Personalisierung in DE & Deloitte Consumer Review 2015 PEOPLE WANT MORE THAN STANDARDIZED PRODUCTS AND WE CAN SEE A GROWING DEMAND 14© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  14. 14. 15 KEY TO SUCCESS TO TAKE OUT 
 COMPLEXITY
 THROUGHOUT THE END-TO-END
 PROCESS
 (FRONT&BACKEND)RE © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  15. 15. 16 THE FRONT ROW SEATS OF ECOM CUSTOMIZATION
 IS A DIFFERENT 
 FIELD OF PLAY
 © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  16. 16. UNLOCKING CUSTOMIZATION FOR THE MANY INDIVIDUAL PEOPLE MASS-CUSTOMIZED MARKETS 17© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20 Source: Market Development by Stanley M. Davis (1987)
  17. 17. THREE CUSTOMIZATION BUSINESS DIMENSIONS 1:1: service experience
 incl. custom fitting options, individual materials and from scratch design Web configurator experience incl. a wide range of products and design options Personalization service incl. adding your name onto
 your product, your individual combination Pinnacle Mass Customization Simple Customization Complexity frontend (configurator) & backend (production) WAY MORE THAN COLORS 18© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  18. 18. 19 EXPERIENCE IT IS NOT (JUST)
 ABOUT AN 
 AWESOME
 PRODUCT 
 CONFIGURATOR © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  19. 19. • The opportunities to personalize your marketing efforts are massive and they are growing constantly in the age of Big Data & AI • Digital solutions to personalize your on-site experience and beyond are growing, f.e. Dynamic Yield • Best case: Nike’s ‚Know me to serve me.‘ approach • We are able to target the right customer, right time but… WE KNOW OUR CUSTOMERS BETTER THAN EVER BEFORE MARKETING HAS BEEN TRANSFORMED 20madeone @ E-commerce Berlin Expo | Feb 20
  20. 20. © 2020 madeone GmbH MASS MARKET REALITY WE’RE 
 MISSING OUT 
 ON THE ACTUAL 
 PRODUCT 
 EXPERIENCE
 madeone @ E-commerce Berlin Expo | Feb 20 21
  21. 21. 22 HANDS-ON EMBRACING THE
 PRODUCTION
 SIDE OF THINGS © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  22. 22. • Nike has built a specialized customization team in each of their factories focussed on ‚NIKEiD‘, formed and further developed since 1999 • Key for decision is if you are able to pull off the backend processes including the fulfillment of custom orders in-house • With madeone we are helping companies and brands to add a successful customization dimension to their running business ENABLING CUSTOMIZATION BUSINESS IN-HOUSE SOLUTION VS. FULFILLMENT PARTNER 23© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  23. 23. SUMMARY 1. PEOPLE ARE DEMANDING
 FOR MORE PERSONALIZED
 PRODUCTS & SERVICES 2. CUSTOMIZATION IS NOT A TREND 3. TAKE-OUT COMPLEXITY 4. EMBRACE PRODUCTION 24© 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20
  24. 24. 25 ECOM BERLIN EXPO 2020 LET’S
 CUSTOMIZE
 OUR FUTURE! © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20 🎨 🌄
  25. 25. © 2020 madeone GmbHmadeone @ E-commerce Berlin Expo | Feb 20 26

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