A corporate executive survey highlights the growing demand for mass customisation and personalisation of products in emerging markets, particularly in Asia, driven by increasing technology and wealth. Despite the strong interest in these strategies, challenges such as lack of reliable infrastructure and customer insights remain significant obstacles. Companies anticipate that personalisation will be a more profitable strategy than mass customisation and expect rising financing needs to support their operations in this area over the next three years.

1. Mass customisation
in emerging markets
Corporate executive survey highlights

2. CHINA
INDIA
GERMANYFRANCE
JAPAN
NETHERLANDS
THAILAND
MALAYSIA
INDONESIA
VIETNAM
PHILIPPINES
US
UK
Half of the respondents were from companies that had
annual revenues of at least US$500m.
Respondents
525 business leaders from companies headquartered in:
The march of technology and rising wealth
are changing the nature, scope and scale
of product mass customisation, especially
in the developed world.
This survey conducted by the EIU was
aimed at exploring the potential for mass
customisation and personalisation of
goods and services in emerging markets.

3. BRAZIL
CHINA
INDIA
GERMANYFRANCE
JAPAN
NETHERLANDS
THAILAND
MALAYSIA
INDONESIA
VIETNAM
PHILIPPINES
US
UK
Half of the respondents were from companies that had
annual revenues of at least US$500m.
Respondents
525 business leaders from companies headquartered in:

4. Respondents
50%of respondents were
c-level executives
25%of respondents were
manager level
25%of respondents were
senior executives

5. 36%Mass production,
the creation of standardised
products and/or services.
51%Mass customisation,
tailoring products for specific
customer groups.
47%Personalisation,
tailoring products for
individual customers.
24%Co-creation,
the direct involvement of customers
in the design of new products.
1%None of the above.
0%Do not know.
Which of the following form part of your company’s product strategy
over the next three years?
Select all that apply.
Mass customisation and personalisation
both figure strongly in the product strategies
of companies that were surveyed.

6. 36%Mass production,
the creation of standardised
products and/or services.
51%Mass customisation,
tailoring products for specific
customer groups.
47%Personalisation,
tailoring products for
individual customers.
24%Co-creation,
the direct involvement of customers
in the design of new products.
1%None of the above.
0%Do not know.
Which of the following form part of your company’s product strategy
over the next three years?
Select all that apply.

7. 55%
50%
59%
Planning to mass customise over the next three years Planning to personalise over the next three years
54%51%
43%
30%
28% 43%
43% 60%
48% 60%
48%43%
52% 55%
37%
37%
Energy
Consumer discretionary
Consumer staples
Information technology
Materials
Industrials
Healthcare
Financial
Telecommunications
Utilities
68%
30 40 50 60 70
Mass customisation is central to
the plans of energy, telecoms and
financial services firms.
Personalisation is significant for
healthcare, industrial goods and
IT companies.

8. 55%
50%
59%
Planning to mass customise over the next three years Planning to personalise over the next three years
54%51%
43%
30%
28% 43%
43% 60%
48% 60%
48%43%
52% 55%
37%
37%
Energy
Consumer discretionary
Consumer staples
Information technology
Materials
Industrials
Healthcare
Financial
Telecommunications
Utilities
68%
30 40 50 60 70

9. East Asia
30%
33%
South-East
Asia
18%
22%
Western
Europe
30%
25%
South Asia
22%
20%
North
America
21%
23%
Central &
South
America
15% 14%
Middle East
& North Africa
19%
22%
Eastern
Europe
17%
21%
Regions where product demand will be greatest in the next three years:
Respondents could pick up to three answers.
Mass customised products Personalised products
With its diverse and relatively fast
growing economies, Asia is expected
to lead demand globally for mass
customised and personalised products.

10. East Asia
30%
33%
South-East
Asia
18%
22%
Western
Europe
30%
25%
South Asia
22%
20%
North
America
21%
23%
Central &
South
America
15% 14%
Middle East
& North Africa
19%
22%
Eastern
Europe
17%
21%
Regions where product demand will be greatest in the next three years:
Respondents could pick up to three answers.
Mass customised products Personalised products

11. Level of premium that can be added to flagship products
in the next three years:
1-10%
11%
10%
11-20%
27%
22%
21-30%
24%
32%
31-40%
16%
15%
41-50%
8% 7%
More than
50%
9% 9%
No premium
can be added
2% 2%
Do not
know
2% 2%
Mass customised products Personalised products
For companies with the right resources
and capabilities, personalisation appears
to be a more lucrative product strategy
than mass customisation.
Companies expect to attach higher
price premiums to personalised products
compared with mass customised ones.

12. Level of premium that can be added to flagship products
in the next three years:
1-10%
11%
10%
11-20%
27%
22%
21-30%
24%
32%
31-40%
16%
15%
41-50%
8% 7%
More than
50%
9% 9%
No premium
can be added
2% 2%
Do not
know
2% 2%
Mass customised products Personalised products

13. Lack of quality transport infrastructure
Lack of reliable distribution options
Inadequate Internet access/communications networks
Shortage of local marketing skills
Inadequate payment systems
Lack of working capital
Lack of insights about customer demand
Shortage of local production skills
Inadequate or insufficient financing options
353025201510
16%
32%
33%
21%
23%
11%
17%
23%
33%
The main external obstacles to overcome to pursue a strategy of
mass customisation and/or product personalisation in emerging markets?
Respondents chose up to three answers.
Corporate executives face considerable
challenges to executing their mass
customisation and personalisation
strategies in emerging markets.
Chief among them: lack of insights
about customer demand, insufficient
working capital and a shortage of
reliable distribution options.

14. Lack of quality transport infrastructure
Lack of reliable distribution options
Inadequate Internet access/communications networks
Shortage of local marketing skills
Inadequate payment systems
Lack of working capital
Lack of insights about customer demand
Shortage of local production skills
Inadequate or insufficient financing options
353025201510
16%
32%
33%
21%
23%
11%
17%
23%
33%
The main external obstacles to overcome to pursue a strategy of
mass customisation and/or product personalisation in emerging markets?
Respondents chose up to three answers.

15. 16%78% 7%
24%69% 8%
Demand for product personalisation will soon be greater in emerging markets
than it is in developed markets.
27%63% 11%
Emerging-market companies are better positioned than developed-market
companies to meet demand for personalisation in their markets.
In three years, no producer will be able to compete without the
build-to-order abilities.
Agree Neither agree nor disagree Disagree
Values may not add up to 100% due to rounding
There were few doubts that
demand for personalised products
will be greater in emerging markets
than in developed markets.

16. 16%78% 7%
24%69% 8%
Demand for product personalisation will soon be greater in emerging markets
than it is in developed markets.
27%63% 11%
Emerging-market companies are better positioned than developed-market
companies to meet demand for personalisation in their markets.
In three years, no producer will be able to compete without the
build-to-order abilities.
Agree Neither agree nor disagree Disagree
Values may not add up to 100% due to rounding

17. 24%Neither agree
nor disagree
69%Agree
7%
Disagree
Mass customisation and personalisation require new approaches
to financing supply-chain operations.
However, the speed and agility
required are expected to strain
supply-chain financing options.
New thinking will be required.

18. 24%Neither agree
nor disagree
69%Agree
7%
Disagree
Mass customisation and personalisation require new approaches
to financing supply-chain operations.

19. Expectations about how mass customisation and personalisation
will affect financing needs over the next three years:
Respondents chose all answers that applied.
Increase the need for real-time payments to suppliers
33% 33%
30%
3% 3%
28%
Require more long-term capital investments
Require higher borrowings for working capital
Lead to increased frequency of payments to suppliers
Lead to longer payment terms to suppliers
Require more flexible financing options
None of the above
32%29%
41%37%
24% 26%
28% 31%
45403530252015105
Mass customised products Personalised products
The biggest impact of customisation
and personalisation on supply-chain
financing will be the need for more
long-term capital investment to build
capabilities, particularly in Asia’s
emerging markets, where demand is
expected to be greatest.

20. Expectations about how mass customisation and personalisation
will affect financing needs over the next three years:
Respondents chose all answers that applied.
Increase the need for real-time payments to suppliers
33% 33%
30%
3% 3%
28%
Require more long-term capital investments
Require higher borrowings for working capital
Lead to increased frequency of payments to suppliers
Lead to longer payment terms to suppliers
Require more flexible financing options
None of the above
32%29%
41%37%
24% 26%
28% 31%
45403530252015105
Mass customised products Personalised products

21. To uncover more insights about mass
customisation in emerging markets, go to
http://growthcrossings.economist.com/
report/made-to-order/