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Understanding Customisable Products 
and the opportunities to use them to 
increase profits and develop new markets 
This white paper has been written to help you understand the products, customers, 
suppliers and markets for customisable, configurable and personalised products. 
It then explores the software, business processes and other critical success factors 
required to sell, produce and market these products 
Andrew Talbot 
@gateway3d +andrewtalbot 
September 2014 
gateway3d.com 
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Contents 
The Products Explained 
Personalised Products 
Configurable Products 
Print On Demand Products 
The Business Case 
The Technology Drivers 
Production Technology 
Public Technology Adoption 
Software & Browser Evolution 
Cultural Influences - Why Customers Want Personalised Product 
The Software Required 
Product Management System 
Online Proofing (Website Personalisation App) 
eCommerce Website 
Auto Artwork Creation 
Auto Order Routing 
Order & Workflow Management 
Types of Customisable Products 
Current & Future Markets 
Industries currently using Customisable Products 
Product Groups 
Sales Platforms 
eCommerce Websites 
Social Media 
Instore / Kiosk 
eMail & QR Codes 
Other Websites 
Marketplaces 
Critical Success Factors 
Conversion Ratios 
Case Studies 
References 
About Gateway 3D 
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The Products Explained 
Customisable products are created by taking an existing or blank product and customising or personalising it 
either by adding your own design / images / text or by changing the product configuration 
This is mainly done by the customer online but the concept has now been expanded to products where the 
personalisation is done by the supplier / retailer by the addition of a unique design or theme not previously part 
of the product offering and not held in stock - Print On Demand Products 
The diagram below illustrates the 3 core product types 
Personalised Products 
Are available in both B2C (Business to Consumer) & B2B (Business to Business) marketplaces. B2C tends to 
focus on orders for single products bought as gifts and decorated with images and/or text - whilst B2B is more 
about logos with products being used for marketing 
Configurable Products 
Are mainly focused on the B2C marketplace where a consumer builds their own bespoke product from a range 
of options available so their product is totally unique - customers are mainly ordering for themselves and is 
currently used for fashion based products 
Print On Demand Products 
As production techniques have improved for manufacturing / printing small volumes of personalised products 
the same processes have become viable for products that would have previously had to be stocked. This is 
usually supplier driven where a supplier can add a wider choice of designs or offer limited edition products 
which are only created as they are ordered. Some sites are now allowing consumers to create their own 
products which are sold to other consumers online 
The section on Types of Customisable Products further breaks down these 3 main product types into more 
detailed product categories and markets 
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The Business Case 
To understand why demand is increasing for personalised / on demand products we should first explore the 
business drivers that have created the demand. There are many clever things that can be done with 
technology nowadays so before investing or committing to a strategy it is important to make sure there is a 
sound business case 
Listed below are the main reasons why the concept of mass personalisation, on demand production and 
web2print are without doubt becoming one of the major drivers of both B2B & B2C eCommerce 
1. Unlimited Choice - by not having to commit to a stock holding it enables you to offer a virtually 
unlimited choice of products 
2. Reduced Stock / Capital Investment - although the cost per item may increase overall by not having 
to tie up capital in stock reduces the overall costs 
3. Reduced Lead Time for New Ranges - for the reasons described in (2) barriers to entry for smaller 
retailers. It is also quicker to launch a new idea related to current event - eg Football Score 
4. More Unique Products - in a world where larger shops are stocking the same ranges there is a strong 
demand for products that truly unique and both personalised and on demand offer this possibility 
5. Streamline Processes - by enabling the customer to design and sign off a product online and by 
creating print ready artwork it is possible to make the production of even 1 product profitable 
6. Changing Profile of Consumers - younger consumer are growing up with mobiles in their hands and 
they expect more original products - they enjoy the idea of creating their own art or searching for a 
unique design 
7. High Impact Promotions - companies like Coca Cola and Heinz have already proved the power of 
personalisation as part of their marketing mix so many other organisations are now looking into 
harnessing personalised products as part of their own campaigns 
One of the most exciting things about the concept is the number of products / market sectors the concept can 
be applied to. We will explore these options later in this paper in the Current & Future Markets section 
“Any industry can allow mass customization and is prone to change. Individuals need to feel 
empowered when purchasing and technology has made this possible. Whether is next year or 10 years 
from now, mass customization will become massively popular” 
“It has the potential to turn more and more people into makers instead of just consumers, and we 
know from history that when you give makers the right tools and inspiration, they have the potential to 
change the world” 
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The Technology Drivers 
Hopefully the business case is now fairly clear so lets turn our attention to the technology that makes the 
delivery of personalised / on demand products possible 
These drivers can be divided into 3 main areas - production technology, public technology adoption and 
software / browser evolution 
Listed below is a brief explanation of how these make the business objectives possible 
Production Technology 
1. Digital Printing - full colour printing with little or no set up time is now possible on hundreds of different 
substrates from T-Shirts to Greetings Cards to Promotional Pens 
2. Other On Demand Production Techniques - sublimation, transfers, embroidery and engraving also 
enable products to be decorated cost effectively for small production runs 
3. 3D Printing - as the name suggests technology now allows us to create 3D objects as well as decorate 
existing products 
4. Just in Time Production - many factories are now set up to build products to individual specifications - 
their processes, machinery and logistics have all evolved to cope 
Public Technology Adoption 
5. Increased Acceptance of eCommerce - has meant people are comfortable to order online and enjoy 
fun applications such as those that enable you to create your own products 
6. Rise in Use of Social Media - means people are sharing a lot more images and other content that are 
often ideal for creating products - no doubt social commerce will become an important channel 
Software & Browser Evolution 
7. Smart Phones with Cameras - also mean people have a lot more images at their fingertips ideal for 
making products 
8. Mobile Artwork Apps & Software - artwork packages or software for manipulating images is widely 
available via mobile apps or cloud apps - giving us lots of ways to create artistic content 
9. HTML5 & Modern Browsers - perhaps most importantly of all most of our web browsers now support 
HTML5 so it is easier for companies like ours to create fun applications that allow the customers to 
make product on websites, social media and mobile devices 
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Cultural Influences - Why Customers Want Personalised Product 
Cultural influences also play a significant part in driving the increased demand for personalised / on demand 
products - not only is their a strong business case , suitable technology but people and organisations are 
actively seeking something different 
Detailed below are some of the factors we have identified that are creating demand 
1. The Rise of the Maker Movement 
The Maker Movement is a global trend or sub culture where people want to create or make their own 
products. it encourages people to learn new creative skills so the concept of consumers creating their 
own products fits perfectly into this. Sites like zazzle.com that then enable makers to sell their creations 
to others further capitalise on the movement 
2. Mass Personalisation 
Is another global trend that encourages manufacturers to differentiate their product offerings by 
enabling users to customise almost every part of the product. Many have credited Dell as starting this 
concept which is being increased used now in the fashion industry. Nike have build a new factory 
focussed solely on producing personalised trainers from their www.nike.com/nikeid website 
3. Mass Customisation 
According to web2print market leaders Vista Print - mass customization is about producing, with the 
reliability, quality and affordability of mass production, small individual orders where each and every 
one embodies the personal relevance inherent to customized physical products. So by producing a 
high volume of small orders you gain the benefit of conventional mass production 
4. Brands Culture 
Brands are keen to use personalised and on demand products to keep themselves in the consumers 
thoughts - experimenting with different products. Just look at how Construction Equipment Supplier 
Caterpillar became a major footwear brand. Brands like Apple promote tremendous loyalty amongst 
their customers and consumers want to share their allegiances 
5. Attitude to Technology 
The phenomenal rise in popularity of the smartphone coupled with the role of social media in our lives 
makes everyone more comfortable with creating and sharing images 
Consumers are used to services like Instagram filters and the number of products and services that 
have sprung up around the social network alone just illustrates that tech savvy consumer want more 
outlets for their creations 
6. Emotional Bonding with Personalised Products 
When somebody creates a product from their favourite images or their own design preferences then it 
is fairly safe to assume they will have a stronger bond with that product making them more likely to 
show their friends and inspire others to buy personalised products 
The 2009 article by Mugge, Schoormans and Schifferstein called 'Emotional bonding with personalised 
products' published in the Journal of Engineering Design focussed on this topic in much more detail 
explaining “designers are increasingly focusing on the ‘emotional responses and 
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experiences’ that products can bring about rather than on their functional benefits” 
A well designed personalised product is an ideal way to deliver that emotional response and create 
advocates for a companies products or services 
7. The Long Tail - Unlimited Choice 
The best selling book by Chris Anderson introduces us to the concept of unlimited choice and what 
better way to offer this than with Personalised or On Demand Products 
In summary the theory of the Long Tail is that “ our culture and economy is increasingly shifting away 
from a focus on a relatively small number of "hits" (mainstream products and markets) at the head of 
the demand curve and toward a huge number of niches in the tail. As the costs of production and 
distribution fall, especially online, there is now less need to lump products and consumers into one-size- 
fits-all containers. In an era without the constraints of physical shelf space and other bottlenecks of 
distribution, narrowly-targeted goods and services can be as economically attractive as mainstream 
fare” 
People gravitate towards niches because they satisfy narrow interests better, and in one aspect of our 
life or another we all have some narrow interest (whether we think of it that way or not). 
By printing on demand or allowing people to personalise a base design it enables the retailer to market 
an unprecedented range of niche products helping them satisfy the long tail but remaining profitable 
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The Software Required 
By now we hope you are clear about the business case, understand the technical and cultural drivers that 
make personalised and on demand products an important area to consider for most ecommerce websites 
This next section explores what software solutions you will need to exploit the opportunity - the diagram below 
illustrates the core components you would need to put in place 
Product Management System 
Products need setting up to enable them to be personalised online. There are lots of factors to consider and 
you will need a database system that enables you to 
● Choose a base image to personalise 
● Apply print / customisation areas with bleed options or split into component parts 
● Add image areas with image resolution checking 
● Add product colour or texture options 
● Add galleries of images or patterns 
● Add text areas and specify fonts, font sizes and font colours 
● Add predesigned templates 
● Select effects to represent different decoration methods 
● Select other variables such as size 
● Add backgrounds and thumbnail images 
● Set up different print output options 
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Online Proofing (Website Personalisation App) 
Although it would be possible to collect information for product personalisation without an online preview via a 
series of text boxes or image upload options - research by leading retailers has indicated that sales 
conversions are 60% higher if an online preview is available so it is highly recommended that when selling a 
personalised product online you factor in the ability to have a preview or preferably a live preview 
Other features that are desirable for online personalisation software are 
● Ability to connect to social images sources such as Facebook, Instagram, Flickr, Google+ 
● Ability to measure the quality of images uploaded 
● Tools to manipulate text and images 
● Ability to auto format text to fit boxes 
● Ability to curve and move text 
● Option to have multi sided or 3D products 
● Ability to save products as well as add them to basket 
On Demand products do not really need an online preview just a product image but ideally these should be set 
up in your product management system so that when ordered they auto create a print job in just the same way 
as a personalised product 
eCommerce Website 
To sell products an eCommerce website would be required. The Personalisation App can either be created as 
part of the website build or provided by a specialist personalisation software company and added to the 
website via an iframe or similar technology. 
As a general rule only the larger organisations can afford to develop their own personalisation technology as 
hopefully this section of the white paper has explained - a six figure budget is generally required to do this well. 
That is why the most popular approach is to use packages developed by specialist providers such Gateway 
3D, Deco Network or Direct Smile 
Products can either be added to an existing website using an API (Application programming interface) or in 
many case are sold via a specialist microsite linked from a company's main website - the choice really 
depends on available IT resource, budget and strategy 
As creating personalised products is usually a fun experience and can take quite a few minutes many 
customers enjoy creating products but do not always go straight on to to purchase them - research suggests 
conversion from creation to purchase is about 50%. There is also a real desire for users to be able to save 
their work or projects or products - so this feature is recommended for the app or website to improve 
conversions 
At the moment not many simple or DIY eCommerce systems would support the sale of personalised or on 
demand products - the easiest way to find out if an ecommerce website could be used to sell personalised 
products would be to ask if the website has an API to enable third party application to add products to its 
shopping cart. Systems like Magento, WooCommerce, Virtuemart & Opencart are fine - systems like Big 
Commerce, Shopify would require a specialist app developing, For more eCommerce platforms see chart on 
the next page 
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An eCommerce website is not the only platform where you can sell personalised and on demand products but 
it is currently the most common - please see the section on Sales Platforms for more information 
Current Market Share of eCommerce Platforms 
Auto Artwork Creation 
For the process of producing personalised or on demand products to be economic then the workflow system 
must generate and print ready artwork that can be auto batched 
For higher volume personalisation websites it is recommended that artwork is not actually created until the 
customer has paid for the product - as we know that 50% of products created may not be actually ordered and 
when dealing with large file like images it can be important to save processing power 
Large file sizes also mean artwork storage is a potential issue so cost effective cloud based storage such as 
Amazon S3 is often used. Most companies involved in this industry would not keep print jobs for more than 
say 3 months as the volume of images stored could become vast and by their nature not many personalised 
products are re-ordered 
At this point you can either use workflow or RIP solution provided by specialist software providers such as 
CADLink or your personalisation software provider may also have a workflow solution 
Adding barcodes to artwork to enable easy identification of a job is also a common requirement 
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Another important factor to consider is artwork formats as different decoration methods will need different 
artwork output formats 
● Sublimation, Digital & DTG Print - jpg, png or pdf 
● Engraving - eps or svg 
● Embroidery - good quality image to create dst 
● Transfer - vector cut line around pdf 
● Product Configurator - parts list 
Auto Order Routing 
Another important feature is the ability to auto direct the order to the appropriate fulfilment house. Retailers are 
able to use a wide range of suppliers if the orders are seamlessly routed to the appropriate fulfiller based on 
product type. A correctly configured system should need no human intervention for an order to arrive at a 
printer or work station 
The software system should then enable each fulfiller to perform the following tasks 
1. Download artwork 
2. Print off branded delivery notes 
3. Communicate with customer (if required) 
4. Confirm order has been despatched 
5. View an audit trail of order processing history 
Order & Workflow Management 
The final piece of software needed for the delivery of personalised and on demand products is an order 
management system 
Many fulfilment companies may have their own workflow / order management system where products orders 
would need to be automatically transferred . This is usually done via API so all orders can be displayed and 
managed in a single system. As mentioned above when dealing with orders that could be as low as a single 
item an automated “no touch” product system is essential 
Features that could be required are 
● Batching Orders by product type 
● Auto Resizing Artwork 
● Barcode scanning to confirm processes completed 
● Carrier Integration 
● RIP Software Integration 
● Customer & Retailer Notifications 
Example Order Workflow 
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Types of Customisable Products 
The infographic below illustrates the wide range of markets and applications that personalised and on demand 
products are currently used for. The three columns across the page focus on the strategic uses of the products 
and how they fit into an organisation’s product mix. 
Each of the markets in the left hand column can be further broken down into industries and are detailed in the 
next section - however as detailed below in the Current & Future Markets section of this paper almost every 
industry has a potential application for a personalised or on demand product 
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The top 4 markets in our Infographic brands, designers, manufacturers and consumers will all traditionally be 
sold by retailers however one interesting dynamic about personalised products is that because specialist 
online software is required to sell them organisations that have invested in this software often trade direct via a 
website as well as supplying via retailers / leading ecommerce websites 
Current & Future Markets 
As products can be sold in so many diverse industries from car sales to photo gifts to footwear it would be 
almost impossible to come up with an exhaustive list. however detailed below are just some of the main 
industries where these kind of products are currently sold - but challenge yourself and I am sure you will come 
up with applications not listed below 
Industries currently using Customisable Products 
Key Note forecasts that the UK giftware market alone will be worth almost £5bn by 2014 so this gives us.some 
kind of idea of the potential market for personalised and on demand products on a global scale 
Detailed below is an overview of markets with potential volumes for customisable products 
Industry Details B2C - Fashion & Footwear Create your own using product configurators B2C - Photo Gifts & Products Upload photos for prints, wall art & gifts B2C - Personalised Gifts & Products Personalise a template to make unique & stylish B2C - Artists & Designers Print on Demand Wall Art & Gifts B2C - Fashion Print on Demand Licensed content on t-shirts & clothing B2C - Greetings Cards & Calendars Design your own cards & calendars B2C - Trophies & Awards Personalised for achievement, incentives & motivation B2C - Clubs & Charity Products Personalised or Demand to Promote membership for that organisation 
B2B - Print Wear, Sports Wear & Workwear Printed & Personalised Garments for teams, B2B - Promotional Products Branded Marketing Products made with company B2B - Sign Industry Create your own signs B2B - Web2Print Create your own literature, stationery, forms & templates 
B2B - Corporate Incentives & Awards Add names and details to awards & gifts Even if we take conservative figures for the UK the market for customisable products would be 6.9 Billion - in 
very basic terms this makes the US & European Markets worth 69 Billion each and the rest of the world 
perhaps another 30 billion - making the total global market 176 Billion 
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Product Groups 
We have already covered the different product types at a high level so this section breaks down further the 
actual product groups - however it is also worth pointing out that almost any product is potentially customisable 
Personalised Gifts & 
Photo Gifts 
Greetings Cards & 
Stationery 
Awards & Incentives Fashion 
Phone Cases 
Mugs & Water Bottles 
Sweets & Chocolates 
Textiles 
Toys & Games 
Leather & PU 
Photo Panels 
Keyrings & Magnets 
Engraved Gifts 
Pet Products 
Golf & Outdoor 
Calendar 
Greetings Cards 
Invitations 
Postcards 
Thank You Cards 
Announcements 
Seasonal Cards 
Crystal Awards 
Trophies 
Plaques & Shields 
Crystal Gifts 
Silver Gifts 
Medals 
Watches & Jewelry 
Clocks 
Shoes 
Shirts 
T-Shirts & Polo Shirts 
Coats & Jackets 
Suits & Ties 
Hats & Caps 
Licensed Designs 
Sunglasses 
Wall Art Newspapers & Books Packaging Confectionery & Food 
Canvas 
Acrylic 
Collage 
WoodPrint 
3D Wall Art 
Personalised Papers 
Personalised Books 
Personalised Posters 
Framed Prints 
Boxes 
Stickers 
Packaging Tape 
Bottle Sleeves 
Bags 
Wines & Spirits 
Water & Juices 
Cookies & Biscuits 
Cakes 
Chocolate 
Hampers 
Web2Print Workwear & Uniforms Promotional Products Signs & Display 
Posters 
Leaflets 
Business Cards 
Counter Cards 
Stickers 
Wall Chart 
Stickynotes 
Note Pads 
T-Shirts & Polo Shirts 
Shirts & Ties 
Sweatshirt & Hoodies 
Coats & Jackets 
Hi Visibility 
Trousers & Skirts 
Headwear 
Aprons & Catering 
Scrubs & Medical 
Clothing & Headwear 
Drinkware 
Mugs & Ceramics 
Pens & Writing 
Umbrella & Outdoor 
Pads & Paper 
Food & Drink 
Executive 
Bags 
Calendar & Diary 
USBs 
Signs 
Badges 
Point of Sale 
Banners 
Flags & Bunting 
Balloons 
Door Hangers 
Teamwear Photo Books & Prints Home Decor Events 
Sports Kits 
Training Kit 
Kit Bags 
Balls 
Awards 
Photo Prints 
Photo Books 
Photo Posters 
Door Mat 
Name Plates 
Wallpaper 
Light Switches 
Marques 
Banner Stands 
Wristbands 
Golf balls 
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Sales Platforms 
Although the eCommerce website is easily the number 1 channel for selling personalised and on demand 
product - there are many other potential options 
eCommerce Websites 
As introduced in the software section earlier in this paper you can either add products to existing websites 
using a personalisation app or build a dedicated micro site just focussed on personalised / on demand 
products. This is currently the most popular way to sell personalised products as it is easier to cross sell to 
existing customers and use techniques like pay per click and SEO to drive additional traffic to the website - 
see the section on Conversion Rates to understand more about the relationship between visitors and orders 
Social Media 
As so much content is now shared by social media this is potentially a very good channel - it is now possible to 
create apps for facebook that enable you to sell off the page. As these type of products are focussed on 
special interest groups it makes them the perfect content for a fan page or group - lots of likes or fans means a 
captive market. Over the next few years we expect this to become a very popular channel 
Instore / Kiosk 
As detailed earlier these kind of products need some form of terminal to create and sell. Many retail outlets 
have kiosk systems which are essentially a locked down computer in a display stand which could be suitable 
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for selling personalised products if they have an Internet connection. However there is now an easier and 
cheaper alternative in the tablet - there are many secure retail cases for tablets and it is fairly simple to use a 
personalisation app on a tablet enables personalised and on demand products to be sold Instore 
The fulfilment can then either be handled off site via a network of fulfillers or by using modern printing 
equipment it can be produced Instore on demand. This is a particularly powerful idea for personalised products 
at tourist attraction or to enable a shop to offer a massive range of designs that can be supplied on demand 
At a simple level this concept has been used at Amusement Parks like Alton Towers selling photos, key rings 
and phone cases but can also be found now at major sports clubs like Manchester United who do a substantial 
turnover on personalised products in their club superstore. 
eMail & QR Codes 
As a personalisation app is in simple terms just a URL it can easily added to an email or turned into a QR 
code. This has several important implication for use as a sales platform 
As we cover in more detail in the Conversion Ratios section a targeted email campaign can attract conversion 
rates of up to 40% - with a personalised product you have the ability to insert a link into an email that carries 
forward personal details from th email onto a product and allows the consumer to buy directly from that link - 
as you can imagine this has an even bigger impact on conversion 
By creating a QR code from a link it enables you to sell personalised or on demand products anywhere without 
the need for a physical shop - imagine walking around an historic building and having the opportunity to 
purchase products including your family to remind you of your visit from your smartphone or perhaps as a 
souvenir at a major sporting event just by scanning a QR code 
Other Websites 
Using the link concept described above you can also sell product on non ecommerce websites such as blogs, 
information and catalogue sites. This enables you to add products next to appropriate content and reach target 
audiences more effectively 
Marketplaces 
It is currently quite difficult to sell personalised on marketplaces such as eBay, Amazon and Play as they do 
not allow you to use external links on their pages so you cannot launch personalisation apps. However as 
these marketplaces have a lot of traffic they are ideal for selling on demand products where the orders can be 
sent direct to an order management system which creates a print job for the product ordered in the same way 
as if it was a one off personalised product. At a very basic level the more SKUs you put on a marketplace like 
Amazon the more sales you will get as we know they already have the traffic 
It is also anticipated that in the near future the marketplaces will allow the creation of customised products 
online and they themselves represent a significant sales opportunity 
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Critical Success Factors 
There are 4 key factors that dictate how easily an organisation can add personalised / on demand products to 
its range. In simple terms if an organisation can meet all 4 criteria then they have the most chance of success 
1. Products - there are many trade suppliers that can now offer a fulfilment service for personalised / on 
demand products if a company does not have its own production - so really all companies can boast of 
this option. It is also fair to say that equipment has also improved and it is fairly easier to purchase 
multipurpose digital printing equipment 
2. Content - this is really important to achieve that emotional attachment to products discussed in the 
cultural factors section - do you have any content for products? - logos, images, licenses and designs 
that would interest new or existing customers 
3. Customers - have you got many customers already where you can cross sell these products 
4. Website - as demonstrated in the next section Conversion Ratios if you can deliver the visitors then 
you can calculate your returns and research is fairly clear on average selling price and conversion % 
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Conversion Ratios 
Typical eCommerce Conversion Rates 
Source - Monetate eCommerce Quarterly Survey 
The good news is that typical conversion rates for personalised / on demand products are considerably higher 
because of the emotional attachment to something created yourself and that fact that with on demand you can 
more accurately target unique content to a user's specific interests 
Typical conversion ratios are as high as 7.5% more than double conventional ecommerce products 
The most important factor that drives conversion is the ability to see an online preview of your product before 
you buy - research carried out by leading personalised gift suppliers indicates that conversions are typically 
60% higher with this feature enabled 
Another key factor is the ability to save / share a created product - research indicates that around 25% of all 
saved products do then convert to order and shared products drive visitors with a higher than average chance 
of converting 
The final factor to consider is traffic source 
● EMail drives higher conversion as possible to target a product personalised for the recipient 
● Social media can also be very effective as you can target products from relevant content on a page or 
group - such as a club or hobby 
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Case Studies 
There are hundreds of great examples of companies adopting personalised and on demand products as part 
of their business strategy but detailed below are some very successful high profile sites that best illustrate the 
products sold and markets supplied 
Moonpig - Personalised Cards & Gifts B2C Website 
http://www.moonpig.com 
Turnover - £55 Million 
Moonpig have revolutionised the greetings card market in the UK and are one of the pioneers of the entire 
personalisation market. They have changed the way the Greeting Card industry sells cards and could be 
considered a key factor in the recent bankruptcy of Clintons Cards. Now owned by photo gift company 
Photobox they have linked the 2 websites and are starting to push into other related products that can be 
personalised. A great example of taking the personalisation concept into a new market and gaining rapid 
market share 
Nike - Configurable Trainers B2C - Product Range Extension 
www.nike.com/nikeid/ 
Nike have set up a dedicated production facility to enable mass personalisation of shoes & boots this is linked 
to a slick website that enables consumers to create their ideal shoe or boot. As the factory has been built to 
enable the benefits of mass production for individual orders it is a great example of creating a new product to 
fulfil,customer demand. Nike have responded to the demand for personalised products and changed their 
production to accomodate 
Coca Cola - Personalisation for Marketing B2C & B2B 
https://www.mycoca-cola.com/uk/ 
In 2013 Coke discovered the power of personalisation when they launched their campaign to add names to 
their standard bottles. This concept has then evolved to enable them to offer their distributors and end users 
opportunities to create personalised coke gifts. This is a great example of both brand building and usiNg 
personalisation to sell more products 
Vista Print - Mass Customisation B2B Website 
http://www.vistaprint.co.uk/ 
Turnover £1.5 Billion 
Market leaders in web2print for traditional print products like business cards & leaflets. Vista Print are now 
branching out into other product lines such as clothing and promotional products where their concept of large 
volumes of individually customised products have all the production advantages of mass production can also 
be applied. They are also a great example of enabling customers to design online and then manage 
production using computer integrated manufacturing as described in the The Software Required section of this 
white paper 
Zazzle - On Demand Products B2C Website 
http://www.zazzle.com/ 
Turnover £250 Million 
Great example of how to sell both user defined content (customer designed product), licensed designs and 
personalised products. On Demand Product sales out perform design your own by more than 10 to 1 and their 
website is great example of the concept of unlimited choice with over 1 Million products available to purchase 
on demand. Zazzle also put computer integrated manufacturing and mass personalisation at the heart of their 
business philosophy 
_____________________________________________________________________________________________________________________ 
Understanding Customisable Products and the Business Opportunities Page 21 of 23
References 
Detailed below are the main academic, company and media services that have been referenced in this white 
paper and have been used to research and test the concepts explored in this white paper 
Mass Personalisation 500 - Dominik Walcher and Frank Piller 
http://masscustom.info/mc500-study/ 
Disruptive Technologies for eCommerce - 
http://netonomy.net/2013/07/30/three-technologies-that-are-disrupting-online-retail/ 
Making it Personal - Bain & Co 
http://www.bain.com/publications/articles/making-it-personal-rules-for-success-in-product-customization.aspx 
InfoTrends Highlights Key Market Drivers in the Online Photo Services Market 
http://www.infotrends.com/public/Content/Press/2012/03.19.2012.html 
Is Mass Customization the future of eCommerce? 
http://netonomy.net/2014/04/03/mass-customization-future-ecommerce/ 
Having It Their Way: The Big Opportunity In Personalized Products 
http://www.forbes.com/sites/baininsights/2013/11/05/having-it-their-way-the-big-opportunity-in- 
personalized-products/ 
PIRA Global Print Trends 
http://www.slideshare.net/mobile/adampage1976/global-print-markets-to-2016 
The Long Tail - Chris Anderson 
http://www.longtail.com/about.html 
Emotional Bonding with Personalised Products 
https://drive.google.com/file/d/0B-v2Btf_ 
xVSsMTM5MmMyNTEtNWU5MC00ZmEzLTk0OGItOGNmZDBiNmY1NzQ3/edit?usp=sharing 
Monetate eCommerce Quarterly Survey 
http://www.monetate.com/research/ 
Vista Print Investor Relations 
http://ir.vistaprint.com/phoenix.zhtml?c=188894&p=irol-IRHome 
_____________________________________________________________________________________________________________________ 
Understanding Customisable Products and the Business Opportunities Page 22 of 23
About Gateway 3D 
As we hope this paper illustrates we have a deep understanding of the customisable product marketplace and 
have become an important strategic partner for many of our clients in implementing new strategies or 
launching new businesses 
We are passionate about the concept of personalisation and are focussed on becoming 
global leaders in end to end software solutions for product manufacturers, printers, retailers and entrepreneurs 
in both the B2B and B2C marketplaces 
Our Custom Product Platform (CPP) was launched in 2014 and offers what we believe to be the world's first 
end to end solution for all the modules of software needed to implement a personalised / on demand product 
business as described in the section on The Software Required 
Based in the UK but now with offices in the US & Europe we currently have a customer base of more than 200 
companies and our software is used on in excess of 1000 websites processing thousands of orders every day 
Customer can either use our whole suit of applications or connect to individual components via our API 
For example add print jobs created on a third party website to our order management system or add print jobs 
from our personalisation app to a third party production system 
Here are just some of the brands who have product delivered by our systems Google, Coca Cola, Hallmark, 
Marks & Spencer, Boots, Punch Taverns, Skinit, Shutterfly, Ried Bubble, Cewe, Jessops 
For more details about our solutions please contact 
UK - andrew@gateway3d.com 
Europe - daniel@gateway3d.com 
US - vic@ipersonalyze.com 
Rest of the World - andrew@gateway3d.com 
or visit our website and blog 
http://www.gateway3d.com/ 
http://www.gateway3d.com/blog/ 
_____________________________________________________________________________________________________________________ 
Understanding Customisable Products and the Business Opportunities Page 23 of 23

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Understanding customisable products and the opportunities to use them to increase profits and develop new markets

  • 1. Understanding Customisable Products and the opportunities to use them to increase profits and develop new markets This white paper has been written to help you understand the products, customers, suppliers and markets for customisable, configurable and personalised products. It then explores the software, business processes and other critical success factors required to sell, produce and market these products Andrew Talbot @gateway3d +andrewtalbot September 2014 gateway3d.com _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 1 of 23
  • 2. Contents The Products Explained Personalised Products Configurable Products Print On Demand Products The Business Case The Technology Drivers Production Technology Public Technology Adoption Software & Browser Evolution Cultural Influences - Why Customers Want Personalised Product The Software Required Product Management System Online Proofing (Website Personalisation App) eCommerce Website Auto Artwork Creation Auto Order Routing Order & Workflow Management Types of Customisable Products Current & Future Markets Industries currently using Customisable Products Product Groups Sales Platforms eCommerce Websites Social Media Instore / Kiosk eMail & QR Codes Other Websites Marketplaces Critical Success Factors Conversion Ratios Case Studies References About Gateway 3D _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 2 of 23
  • 4. The Products Explained Customisable products are created by taking an existing or blank product and customising or personalising it either by adding your own design / images / text or by changing the product configuration This is mainly done by the customer online but the concept has now been expanded to products where the personalisation is done by the supplier / retailer by the addition of a unique design or theme not previously part of the product offering and not held in stock - Print On Demand Products The diagram below illustrates the 3 core product types Personalised Products Are available in both B2C (Business to Consumer) & B2B (Business to Business) marketplaces. B2C tends to focus on orders for single products bought as gifts and decorated with images and/or text - whilst B2B is more about logos with products being used for marketing Configurable Products Are mainly focused on the B2C marketplace where a consumer builds their own bespoke product from a range of options available so their product is totally unique - customers are mainly ordering for themselves and is currently used for fashion based products Print On Demand Products As production techniques have improved for manufacturing / printing small volumes of personalised products the same processes have become viable for products that would have previously had to be stocked. This is usually supplier driven where a supplier can add a wider choice of designs or offer limited edition products which are only created as they are ordered. Some sites are now allowing consumers to create their own products which are sold to other consumers online The section on Types of Customisable Products further breaks down these 3 main product types into more detailed product categories and markets _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 4 of 23
  • 5. The Business Case To understand why demand is increasing for personalised / on demand products we should first explore the business drivers that have created the demand. There are many clever things that can be done with technology nowadays so before investing or committing to a strategy it is important to make sure there is a sound business case Listed below are the main reasons why the concept of mass personalisation, on demand production and web2print are without doubt becoming one of the major drivers of both B2B & B2C eCommerce 1. Unlimited Choice - by not having to commit to a stock holding it enables you to offer a virtually unlimited choice of products 2. Reduced Stock / Capital Investment - although the cost per item may increase overall by not having to tie up capital in stock reduces the overall costs 3. Reduced Lead Time for New Ranges - for the reasons described in (2) barriers to entry for smaller retailers. It is also quicker to launch a new idea related to current event - eg Football Score 4. More Unique Products - in a world where larger shops are stocking the same ranges there is a strong demand for products that truly unique and both personalised and on demand offer this possibility 5. Streamline Processes - by enabling the customer to design and sign off a product online and by creating print ready artwork it is possible to make the production of even 1 product profitable 6. Changing Profile of Consumers - younger consumer are growing up with mobiles in their hands and they expect more original products - they enjoy the idea of creating their own art or searching for a unique design 7. High Impact Promotions - companies like Coca Cola and Heinz have already proved the power of personalisation as part of their marketing mix so many other organisations are now looking into harnessing personalised products as part of their own campaigns One of the most exciting things about the concept is the number of products / market sectors the concept can be applied to. We will explore these options later in this paper in the Current & Future Markets section “Any industry can allow mass customization and is prone to change. Individuals need to feel empowered when purchasing and technology has made this possible. Whether is next year or 10 years from now, mass customization will become massively popular” “It has the potential to turn more and more people into makers instead of just consumers, and we know from history that when you give makers the right tools and inspiration, they have the potential to change the world” _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 5 of 23
  • 6. The Technology Drivers Hopefully the business case is now fairly clear so lets turn our attention to the technology that makes the delivery of personalised / on demand products possible These drivers can be divided into 3 main areas - production technology, public technology adoption and software / browser evolution Listed below is a brief explanation of how these make the business objectives possible Production Technology 1. Digital Printing - full colour printing with little or no set up time is now possible on hundreds of different substrates from T-Shirts to Greetings Cards to Promotional Pens 2. Other On Demand Production Techniques - sublimation, transfers, embroidery and engraving also enable products to be decorated cost effectively for small production runs 3. 3D Printing - as the name suggests technology now allows us to create 3D objects as well as decorate existing products 4. Just in Time Production - many factories are now set up to build products to individual specifications - their processes, machinery and logistics have all evolved to cope Public Technology Adoption 5. Increased Acceptance of eCommerce - has meant people are comfortable to order online and enjoy fun applications such as those that enable you to create your own products 6. Rise in Use of Social Media - means people are sharing a lot more images and other content that are often ideal for creating products - no doubt social commerce will become an important channel Software & Browser Evolution 7. Smart Phones with Cameras - also mean people have a lot more images at their fingertips ideal for making products 8. Mobile Artwork Apps & Software - artwork packages or software for manipulating images is widely available via mobile apps or cloud apps - giving us lots of ways to create artistic content 9. HTML5 & Modern Browsers - perhaps most importantly of all most of our web browsers now support HTML5 so it is easier for companies like ours to create fun applications that allow the customers to make product on websites, social media and mobile devices _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 6 of 23
  • 8. Cultural Influences - Why Customers Want Personalised Product Cultural influences also play a significant part in driving the increased demand for personalised / on demand products - not only is their a strong business case , suitable technology but people and organisations are actively seeking something different Detailed below are some of the factors we have identified that are creating demand 1. The Rise of the Maker Movement The Maker Movement is a global trend or sub culture where people want to create or make their own products. it encourages people to learn new creative skills so the concept of consumers creating their own products fits perfectly into this. Sites like zazzle.com that then enable makers to sell their creations to others further capitalise on the movement 2. Mass Personalisation Is another global trend that encourages manufacturers to differentiate their product offerings by enabling users to customise almost every part of the product. Many have credited Dell as starting this concept which is being increased used now in the fashion industry. Nike have build a new factory focussed solely on producing personalised trainers from their www.nike.com/nikeid website 3. Mass Customisation According to web2print market leaders Vista Print - mass customization is about producing, with the reliability, quality and affordability of mass production, small individual orders where each and every one embodies the personal relevance inherent to customized physical products. So by producing a high volume of small orders you gain the benefit of conventional mass production 4. Brands Culture Brands are keen to use personalised and on demand products to keep themselves in the consumers thoughts - experimenting with different products. Just look at how Construction Equipment Supplier Caterpillar became a major footwear brand. Brands like Apple promote tremendous loyalty amongst their customers and consumers want to share their allegiances 5. Attitude to Technology The phenomenal rise in popularity of the smartphone coupled with the role of social media in our lives makes everyone more comfortable with creating and sharing images Consumers are used to services like Instagram filters and the number of products and services that have sprung up around the social network alone just illustrates that tech savvy consumer want more outlets for their creations 6. Emotional Bonding with Personalised Products When somebody creates a product from their favourite images or their own design preferences then it is fairly safe to assume they will have a stronger bond with that product making them more likely to show their friends and inspire others to buy personalised products The 2009 article by Mugge, Schoormans and Schifferstein called 'Emotional bonding with personalised products' published in the Journal of Engineering Design focussed on this topic in much more detail explaining “designers are increasingly focusing on the ‘emotional responses and _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 8 of 23
  • 9. experiences’ that products can bring about rather than on their functional benefits” A well designed personalised product is an ideal way to deliver that emotional response and create advocates for a companies products or services 7. The Long Tail - Unlimited Choice The best selling book by Chris Anderson introduces us to the concept of unlimited choice and what better way to offer this than with Personalised or On Demand Products In summary the theory of the Long Tail is that “ our culture and economy is increasingly shifting away from a focus on a relatively small number of "hits" (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size- fits-all containers. In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly-targeted goods and services can be as economically attractive as mainstream fare” People gravitate towards niches because they satisfy narrow interests better, and in one aspect of our life or another we all have some narrow interest (whether we think of it that way or not). By printing on demand or allowing people to personalise a base design it enables the retailer to market an unprecedented range of niche products helping them satisfy the long tail but remaining profitable _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 9 of 23
  • 10. The Software Required By now we hope you are clear about the business case, understand the technical and cultural drivers that make personalised and on demand products an important area to consider for most ecommerce websites This next section explores what software solutions you will need to exploit the opportunity - the diagram below illustrates the core components you would need to put in place Product Management System Products need setting up to enable them to be personalised online. There are lots of factors to consider and you will need a database system that enables you to ● Choose a base image to personalise ● Apply print / customisation areas with bleed options or split into component parts ● Add image areas with image resolution checking ● Add product colour or texture options ● Add galleries of images or patterns ● Add text areas and specify fonts, font sizes and font colours ● Add predesigned templates ● Select effects to represent different decoration methods ● Select other variables such as size ● Add backgrounds and thumbnail images ● Set up different print output options _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 10 of 23
  • 11. Online Proofing (Website Personalisation App) Although it would be possible to collect information for product personalisation without an online preview via a series of text boxes or image upload options - research by leading retailers has indicated that sales conversions are 60% higher if an online preview is available so it is highly recommended that when selling a personalised product online you factor in the ability to have a preview or preferably a live preview Other features that are desirable for online personalisation software are ● Ability to connect to social images sources such as Facebook, Instagram, Flickr, Google+ ● Ability to measure the quality of images uploaded ● Tools to manipulate text and images ● Ability to auto format text to fit boxes ● Ability to curve and move text ● Option to have multi sided or 3D products ● Ability to save products as well as add them to basket On Demand products do not really need an online preview just a product image but ideally these should be set up in your product management system so that when ordered they auto create a print job in just the same way as a personalised product eCommerce Website To sell products an eCommerce website would be required. The Personalisation App can either be created as part of the website build or provided by a specialist personalisation software company and added to the website via an iframe or similar technology. As a general rule only the larger organisations can afford to develop their own personalisation technology as hopefully this section of the white paper has explained - a six figure budget is generally required to do this well. That is why the most popular approach is to use packages developed by specialist providers such Gateway 3D, Deco Network or Direct Smile Products can either be added to an existing website using an API (Application programming interface) or in many case are sold via a specialist microsite linked from a company's main website - the choice really depends on available IT resource, budget and strategy As creating personalised products is usually a fun experience and can take quite a few minutes many customers enjoy creating products but do not always go straight on to to purchase them - research suggests conversion from creation to purchase is about 50%. There is also a real desire for users to be able to save their work or projects or products - so this feature is recommended for the app or website to improve conversions At the moment not many simple or DIY eCommerce systems would support the sale of personalised or on demand products - the easiest way to find out if an ecommerce website could be used to sell personalised products would be to ask if the website has an API to enable third party application to add products to its shopping cart. Systems like Magento, WooCommerce, Virtuemart & Opencart are fine - systems like Big Commerce, Shopify would require a specialist app developing, For more eCommerce platforms see chart on the next page _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 11 of 23
  • 12. An eCommerce website is not the only platform where you can sell personalised and on demand products but it is currently the most common - please see the section on Sales Platforms for more information Current Market Share of eCommerce Platforms Auto Artwork Creation For the process of producing personalised or on demand products to be economic then the workflow system must generate and print ready artwork that can be auto batched For higher volume personalisation websites it is recommended that artwork is not actually created until the customer has paid for the product - as we know that 50% of products created may not be actually ordered and when dealing with large file like images it can be important to save processing power Large file sizes also mean artwork storage is a potential issue so cost effective cloud based storage such as Amazon S3 is often used. Most companies involved in this industry would not keep print jobs for more than say 3 months as the volume of images stored could become vast and by their nature not many personalised products are re-ordered At this point you can either use workflow or RIP solution provided by specialist software providers such as CADLink or your personalisation software provider may also have a workflow solution Adding barcodes to artwork to enable easy identification of a job is also a common requirement _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 12 of 23
  • 13. Another important factor to consider is artwork formats as different decoration methods will need different artwork output formats ● Sublimation, Digital & DTG Print - jpg, png or pdf ● Engraving - eps or svg ● Embroidery - good quality image to create dst ● Transfer - vector cut line around pdf ● Product Configurator - parts list Auto Order Routing Another important feature is the ability to auto direct the order to the appropriate fulfilment house. Retailers are able to use a wide range of suppliers if the orders are seamlessly routed to the appropriate fulfiller based on product type. A correctly configured system should need no human intervention for an order to arrive at a printer or work station The software system should then enable each fulfiller to perform the following tasks 1. Download artwork 2. Print off branded delivery notes 3. Communicate with customer (if required) 4. Confirm order has been despatched 5. View an audit trail of order processing history Order & Workflow Management The final piece of software needed for the delivery of personalised and on demand products is an order management system Many fulfilment companies may have their own workflow / order management system where products orders would need to be automatically transferred . This is usually done via API so all orders can be displayed and managed in a single system. As mentioned above when dealing with orders that could be as low as a single item an automated “no touch” product system is essential Features that could be required are ● Batching Orders by product type ● Auto Resizing Artwork ● Barcode scanning to confirm processes completed ● Carrier Integration ● RIP Software Integration ● Customer & Retailer Notifications Example Order Workflow _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 13 of 23
  • 14. Types of Customisable Products The infographic below illustrates the wide range of markets and applications that personalised and on demand products are currently used for. The three columns across the page focus on the strategic uses of the products and how they fit into an organisation’s product mix. Each of the markets in the left hand column can be further broken down into industries and are detailed in the next section - however as detailed below in the Current & Future Markets section of this paper almost every industry has a potential application for a personalised or on demand product _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 14 of 23
  • 15. The top 4 markets in our Infographic brands, designers, manufacturers and consumers will all traditionally be sold by retailers however one interesting dynamic about personalised products is that because specialist online software is required to sell them organisations that have invested in this software often trade direct via a website as well as supplying via retailers / leading ecommerce websites Current & Future Markets As products can be sold in so many diverse industries from car sales to photo gifts to footwear it would be almost impossible to come up with an exhaustive list. however detailed below are just some of the main industries where these kind of products are currently sold - but challenge yourself and I am sure you will come up with applications not listed below Industries currently using Customisable Products Key Note forecasts that the UK giftware market alone will be worth almost £5bn by 2014 so this gives us.some kind of idea of the potential market for personalised and on demand products on a global scale Detailed below is an overview of markets with potential volumes for customisable products Industry Details B2C - Fashion & Footwear Create your own using product configurators B2C - Photo Gifts & Products Upload photos for prints, wall art & gifts B2C - Personalised Gifts & Products Personalise a template to make unique & stylish B2C - Artists & Designers Print on Demand Wall Art & Gifts B2C - Fashion Print on Demand Licensed content on t-shirts & clothing B2C - Greetings Cards & Calendars Design your own cards & calendars B2C - Trophies & Awards Personalised for achievement, incentives & motivation B2C - Clubs & Charity Products Personalised or Demand to Promote membership for that organisation B2B - Print Wear, Sports Wear & Workwear Printed & Personalised Garments for teams, B2B - Promotional Products Branded Marketing Products made with company B2B - Sign Industry Create your own signs B2B - Web2Print Create your own literature, stationery, forms & templates B2B - Corporate Incentives & Awards Add names and details to awards & gifts Even if we take conservative figures for the UK the market for customisable products would be 6.9 Billion - in very basic terms this makes the US & European Markets worth 69 Billion each and the rest of the world perhaps another 30 billion - making the total global market 176 Billion _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 15 of 23
  • 16. Product Groups We have already covered the different product types at a high level so this section breaks down further the actual product groups - however it is also worth pointing out that almost any product is potentially customisable Personalised Gifts & Photo Gifts Greetings Cards & Stationery Awards & Incentives Fashion Phone Cases Mugs & Water Bottles Sweets & Chocolates Textiles Toys & Games Leather & PU Photo Panels Keyrings & Magnets Engraved Gifts Pet Products Golf & Outdoor Calendar Greetings Cards Invitations Postcards Thank You Cards Announcements Seasonal Cards Crystal Awards Trophies Plaques & Shields Crystal Gifts Silver Gifts Medals Watches & Jewelry Clocks Shoes Shirts T-Shirts & Polo Shirts Coats & Jackets Suits & Ties Hats & Caps Licensed Designs Sunglasses Wall Art Newspapers & Books Packaging Confectionery & Food Canvas Acrylic Collage WoodPrint 3D Wall Art Personalised Papers Personalised Books Personalised Posters Framed Prints Boxes Stickers Packaging Tape Bottle Sleeves Bags Wines & Spirits Water & Juices Cookies & Biscuits Cakes Chocolate Hampers Web2Print Workwear & Uniforms Promotional Products Signs & Display Posters Leaflets Business Cards Counter Cards Stickers Wall Chart Stickynotes Note Pads T-Shirts & Polo Shirts Shirts & Ties Sweatshirt & Hoodies Coats & Jackets Hi Visibility Trousers & Skirts Headwear Aprons & Catering Scrubs & Medical Clothing & Headwear Drinkware Mugs & Ceramics Pens & Writing Umbrella & Outdoor Pads & Paper Food & Drink Executive Bags Calendar & Diary USBs Signs Badges Point of Sale Banners Flags & Bunting Balloons Door Hangers Teamwear Photo Books & Prints Home Decor Events Sports Kits Training Kit Kit Bags Balls Awards Photo Prints Photo Books Photo Posters Door Mat Name Plates Wallpaper Light Switches Marques Banner Stands Wristbands Golf balls _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 16 of 23
  • 17. Sales Platforms Although the eCommerce website is easily the number 1 channel for selling personalised and on demand product - there are many other potential options eCommerce Websites As introduced in the software section earlier in this paper you can either add products to existing websites using a personalisation app or build a dedicated micro site just focussed on personalised / on demand products. This is currently the most popular way to sell personalised products as it is easier to cross sell to existing customers and use techniques like pay per click and SEO to drive additional traffic to the website - see the section on Conversion Rates to understand more about the relationship between visitors and orders Social Media As so much content is now shared by social media this is potentially a very good channel - it is now possible to create apps for facebook that enable you to sell off the page. As these type of products are focussed on special interest groups it makes them the perfect content for a fan page or group - lots of likes or fans means a captive market. Over the next few years we expect this to become a very popular channel Instore / Kiosk As detailed earlier these kind of products need some form of terminal to create and sell. Many retail outlets have kiosk systems which are essentially a locked down computer in a display stand which could be suitable _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 17 of 23
  • 18. for selling personalised products if they have an Internet connection. However there is now an easier and cheaper alternative in the tablet - there are many secure retail cases for tablets and it is fairly simple to use a personalisation app on a tablet enables personalised and on demand products to be sold Instore The fulfilment can then either be handled off site via a network of fulfillers or by using modern printing equipment it can be produced Instore on demand. This is a particularly powerful idea for personalised products at tourist attraction or to enable a shop to offer a massive range of designs that can be supplied on demand At a simple level this concept has been used at Amusement Parks like Alton Towers selling photos, key rings and phone cases but can also be found now at major sports clubs like Manchester United who do a substantial turnover on personalised products in their club superstore. eMail & QR Codes As a personalisation app is in simple terms just a URL it can easily added to an email or turned into a QR code. This has several important implication for use as a sales platform As we cover in more detail in the Conversion Ratios section a targeted email campaign can attract conversion rates of up to 40% - with a personalised product you have the ability to insert a link into an email that carries forward personal details from th email onto a product and allows the consumer to buy directly from that link - as you can imagine this has an even bigger impact on conversion By creating a QR code from a link it enables you to sell personalised or on demand products anywhere without the need for a physical shop - imagine walking around an historic building and having the opportunity to purchase products including your family to remind you of your visit from your smartphone or perhaps as a souvenir at a major sporting event just by scanning a QR code Other Websites Using the link concept described above you can also sell product on non ecommerce websites such as blogs, information and catalogue sites. This enables you to add products next to appropriate content and reach target audiences more effectively Marketplaces It is currently quite difficult to sell personalised on marketplaces such as eBay, Amazon and Play as they do not allow you to use external links on their pages so you cannot launch personalisation apps. However as these marketplaces have a lot of traffic they are ideal for selling on demand products where the orders can be sent direct to an order management system which creates a print job for the product ordered in the same way as if it was a one off personalised product. At a very basic level the more SKUs you put on a marketplace like Amazon the more sales you will get as we know they already have the traffic It is also anticipated that in the near future the marketplaces will allow the creation of customised products online and they themselves represent a significant sales opportunity _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 18 of 23
  • 19. Critical Success Factors There are 4 key factors that dictate how easily an organisation can add personalised / on demand products to its range. In simple terms if an organisation can meet all 4 criteria then they have the most chance of success 1. Products - there are many trade suppliers that can now offer a fulfilment service for personalised / on demand products if a company does not have its own production - so really all companies can boast of this option. It is also fair to say that equipment has also improved and it is fairly easier to purchase multipurpose digital printing equipment 2. Content - this is really important to achieve that emotional attachment to products discussed in the cultural factors section - do you have any content for products? - logos, images, licenses and designs that would interest new or existing customers 3. Customers - have you got many customers already where you can cross sell these products 4. Website - as demonstrated in the next section Conversion Ratios if you can deliver the visitors then you can calculate your returns and research is fairly clear on average selling price and conversion % _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 19 of 23
  • 20. Conversion Ratios Typical eCommerce Conversion Rates Source - Monetate eCommerce Quarterly Survey The good news is that typical conversion rates for personalised / on demand products are considerably higher because of the emotional attachment to something created yourself and that fact that with on demand you can more accurately target unique content to a user's specific interests Typical conversion ratios are as high as 7.5% more than double conventional ecommerce products The most important factor that drives conversion is the ability to see an online preview of your product before you buy - research carried out by leading personalised gift suppliers indicates that conversions are typically 60% higher with this feature enabled Another key factor is the ability to save / share a created product - research indicates that around 25% of all saved products do then convert to order and shared products drive visitors with a higher than average chance of converting The final factor to consider is traffic source ● EMail drives higher conversion as possible to target a product personalised for the recipient ● Social media can also be very effective as you can target products from relevant content on a page or group - such as a club or hobby _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 20 of 23
  • 21. Case Studies There are hundreds of great examples of companies adopting personalised and on demand products as part of their business strategy but detailed below are some very successful high profile sites that best illustrate the products sold and markets supplied Moonpig - Personalised Cards & Gifts B2C Website http://www.moonpig.com Turnover - £55 Million Moonpig have revolutionised the greetings card market in the UK and are one of the pioneers of the entire personalisation market. They have changed the way the Greeting Card industry sells cards and could be considered a key factor in the recent bankruptcy of Clintons Cards. Now owned by photo gift company Photobox they have linked the 2 websites and are starting to push into other related products that can be personalised. A great example of taking the personalisation concept into a new market and gaining rapid market share Nike - Configurable Trainers B2C - Product Range Extension www.nike.com/nikeid/ Nike have set up a dedicated production facility to enable mass personalisation of shoes & boots this is linked to a slick website that enables consumers to create their ideal shoe or boot. As the factory has been built to enable the benefits of mass production for individual orders it is a great example of creating a new product to fulfil,customer demand. Nike have responded to the demand for personalised products and changed their production to accomodate Coca Cola - Personalisation for Marketing B2C & B2B https://www.mycoca-cola.com/uk/ In 2013 Coke discovered the power of personalisation when they launched their campaign to add names to their standard bottles. This concept has then evolved to enable them to offer their distributors and end users opportunities to create personalised coke gifts. This is a great example of both brand building and usiNg personalisation to sell more products Vista Print - Mass Customisation B2B Website http://www.vistaprint.co.uk/ Turnover £1.5 Billion Market leaders in web2print for traditional print products like business cards & leaflets. Vista Print are now branching out into other product lines such as clothing and promotional products where their concept of large volumes of individually customised products have all the production advantages of mass production can also be applied. They are also a great example of enabling customers to design online and then manage production using computer integrated manufacturing as described in the The Software Required section of this white paper Zazzle - On Demand Products B2C Website http://www.zazzle.com/ Turnover £250 Million Great example of how to sell both user defined content (customer designed product), licensed designs and personalised products. On Demand Product sales out perform design your own by more than 10 to 1 and their website is great example of the concept of unlimited choice with over 1 Million products available to purchase on demand. Zazzle also put computer integrated manufacturing and mass personalisation at the heart of their business philosophy _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 21 of 23
  • 22. References Detailed below are the main academic, company and media services that have been referenced in this white paper and have been used to research and test the concepts explored in this white paper Mass Personalisation 500 - Dominik Walcher and Frank Piller http://masscustom.info/mc500-study/ Disruptive Technologies for eCommerce - http://netonomy.net/2013/07/30/three-technologies-that-are-disrupting-online-retail/ Making it Personal - Bain & Co http://www.bain.com/publications/articles/making-it-personal-rules-for-success-in-product-customization.aspx InfoTrends Highlights Key Market Drivers in the Online Photo Services Market http://www.infotrends.com/public/Content/Press/2012/03.19.2012.html Is Mass Customization the future of eCommerce? http://netonomy.net/2014/04/03/mass-customization-future-ecommerce/ Having It Their Way: The Big Opportunity In Personalized Products http://www.forbes.com/sites/baininsights/2013/11/05/having-it-their-way-the-big-opportunity-in- personalized-products/ PIRA Global Print Trends http://www.slideshare.net/mobile/adampage1976/global-print-markets-to-2016 The Long Tail - Chris Anderson http://www.longtail.com/about.html Emotional Bonding with Personalised Products https://drive.google.com/file/d/0B-v2Btf_ xVSsMTM5MmMyNTEtNWU5MC00ZmEzLTk0OGItOGNmZDBiNmY1NzQ3/edit?usp=sharing Monetate eCommerce Quarterly Survey http://www.monetate.com/research/ Vista Print Investor Relations http://ir.vistaprint.com/phoenix.zhtml?c=188894&p=irol-IRHome _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 22 of 23
  • 23. About Gateway 3D As we hope this paper illustrates we have a deep understanding of the customisable product marketplace and have become an important strategic partner for many of our clients in implementing new strategies or launching new businesses We are passionate about the concept of personalisation and are focussed on becoming global leaders in end to end software solutions for product manufacturers, printers, retailers and entrepreneurs in both the B2B and B2C marketplaces Our Custom Product Platform (CPP) was launched in 2014 and offers what we believe to be the world's first end to end solution for all the modules of software needed to implement a personalised / on demand product business as described in the section on The Software Required Based in the UK but now with offices in the US & Europe we currently have a customer base of more than 200 companies and our software is used on in excess of 1000 websites processing thousands of orders every day Customer can either use our whole suit of applications or connect to individual components via our API For example add print jobs created on a third party website to our order management system or add print jobs from our personalisation app to a third party production system Here are just some of the brands who have product delivered by our systems Google, Coca Cola, Hallmark, Marks & Spencer, Boots, Punch Taverns, Skinit, Shutterfly, Ried Bubble, Cewe, Jessops For more details about our solutions please contact UK - andrew@gateway3d.com Europe - daniel@gateway3d.com US - vic@ipersonalyze.com Rest of the World - andrew@gateway3d.com or visit our website and blog http://www.gateway3d.com/ http://www.gateway3d.com/blog/ _____________________________________________________________________________________________________________________ Understanding Customisable Products and the Business Opportunities Page 23 of 23