Personalization, in the context of ecommerce and mass customization, can be defined as providing consumers with a web-based toolkit to input custom text and images on to the surface of a product. Most often personalization applies to printable commodity products like t-shirts, mugs, tote bags and stickers. Anything that can be printed can be personalized.
How big is the personalization market?
According to the CafePress SEC filing, “Based on 2009 U.S. Census Bureau data, we estimate the U.S. market for customizable retail goods is approximately $1.0 trillion.”
What is personalization?
Personalization can also be classified as cosmetic customization, as per Joe Pine’s definition: “Cosmetic customization, where a standard product is presented differently to different customers. The cosmetic approach is appropriate when customers use a product the same way and differ only in how they want it presented. Rather than being customized or customisable, the standard offering is packaged specially for each customer. For example, the product may be displayed differently; its attributes and benefits advertised in different ways, or the customer’s name may be placed on each item.”
As outlined in a previous post, personalization services are built with online design tools, which is a separate kind of toolset from Treehouse Logic’s unique hosted product configurator solution. These design tools are essentially hosted editing tools – like a lite Photoshop in the cloud. And, much like desktop editing tools, these design tools often include desktop-like navigation features like drag-and-drop.
Here’s a snapshot of a few sub-segments of the personalization market.
Dozens of online printers offer personalization. Examples include Custom Ink, Uber Prints, and Funky T Shack. (Yes, seriously). These consumer-facing printing companies offer design-it-yourself web tools that include text overlay and image upload. Once an order is taken, printing and shipping are handled at the company’s manufacturing facility.
Additionally, print shops like Zazzle, CafePress, and Spreadshirt invite the community of quasi-designers to post their designs on their site and sell it to the public. Like an eBay or Etsy marketplace, buyers and sellers converge in an ever growing network of virtual goods. Designs are crowd-sourced by micro-entrepreneurs, and the network makes money by charging a commission on every sale.
This consumer/designer model differs from other crowd-sourced print companies like Threadless that require that designers submit more professionally designed image files (in Photoshop or Illustrator format) rather than using standards-based, consumer-facing browser based design tools.
Embedded design tools
Some software companies make their front-end design tools available to back-end printing businesses. Spreadshirt offers an API that enables anyone to embed and skin their design tool, but printing itself must be processed via the Spreadshirt supply chain. Inksoft offers printers a front-end design tool template that they can used to process print orders, but the template is not very flexible.
The worlds of customization and personalization toolkits are colliding and evolving quickly. Although many of these t-shirt designers brought innovation to the market by publishing design tools on the Internet, the market is demanding more flexible toolkits that allow brands to build their own branded personalization experiences. We’ll see a lot of disruption in the personalization space in the next few years, especially now that social commerce is taking a leading role in ecommerce innovation.