Posted on February 28, 2022

When identifying ways to stand out, customization is king. It has boundless potential for both brands and customers. As such, the e-commerce market is predicted to reach $27.15 trillion by 2027. Custom products are the future of small and medium-sized businesses. 

2020 accelerated the rise of SMB online retail

The 2020 pandemic significantly increased the number of people working remotely, fundamentally changing daily habits. For example, the percentage of people buying groceries and pharmaceuticals online skyrocketed. And the growth of online shopping surpassed every prediction. In fact, Covid-19 "helped" accelerate online shopping by roughly five years.

The previous year showed the true power of the internet: The possibility to essentially eradicate common human interaction. 

The world is going custom

A considerable percentage of consumers are dissatisfied with the one-size-fits-all approach. Consumers are willing to pay top dollar for customization. According to a 2017 study, "The future of fashion is tailor-made and online." The study found that 49% of Americans are interested in buying customized items, with 3% of these online buyers willing to spend more than $1,000 on "made-to-measure" products.

What's more, according to The Deloitte Consumer Review, more than 50% of consumers showed interest in purchasing personalized products for themselves and their friends and family. Retailers that take part in product customization trends have the opportunity to increase product sales and build repeat business. 

What's prompting the rise of personalized product sales?

There are many reasons behind wanting to customize — to demonstrate creativity, stand out and feel pride in creating something. Personalization growth appears to be driven by the ease of finding services that allow customization on the products consumers love (and products they didn't know they wanted) and advanced technologies that enable adorning apparel, accessories and home decor with digital images and art.

The rise of personalized products is a logical evolution in today's economy of instant gratification. Consumers take their access to on-demand, customized services for granted. Everything we want and need is accessible in the comfort of our own home — ordering food, cosmetics, a taxi — all without ever talking to a live human being.  

Social networks also play an important role, allowing consumers to instantly share their purchases, as well as rate and comment on them. This further strengthens the connective bond between the consumer and the product. Customers who are pleased with a purchase gladly share photos of their personalized products online, transforming shoppers into brand ambassadors. That's why micro-influencers and "ordinary people" are more valuable than celebrities — they give honest opinions. In contrast, celebrities and macro-influencers get paid to show products they might not even care about.

Original article: https://www.forbes.com/sites/forbestechcouncil/2021/02/25/the-future-of-smb-retail-custom-and-personalized-products/?sh=4a400e686727