Retailers Find That Customized Clothing Is the Right Fit.

Anyone who’s been clothes shopping knows that no two brands that are the same size fit the same, and that’s leaving consumers frustrated and angry — and leaving stores empty-handed.

After years of ignoring the problem, retailers are finally waking up to the reality of “mass customization.” When it comes to customizing products, the apparel industry is behind other businesses, many of which use the Internet and other technology to give consumers exactly what they want at a reasonable price.

As in other industries, such as automobiles and publishing, “mass customization” can be as efficient as mass production, says Frank Piller, a visiting research fellow at the MIT Sloan School of Management. American consumers want customized goods, he says, and are willing to pay a premium for them.

Many retailers already realize how important the issue has become.

“Having the right size is the difference between having a dissatisfied and a loyal customer,” said Jon Nordeen, executive vice president of merchandising, planning and allocation at Kohl’s Department Stores. Kohl’s has been conducting a year-long study with retail software provider SAS to improve the placement of sizes in stores.

Mass customization isn’t just about customer satisfaction, but also about pumping up margins. About 20 percent of the population wants custom apparel — and they’re willing to pay an extra 30 percent or more for it, says Jim Lovejoy, director of industry programs at Textile Clothing Technology Corp. (TCTC), a non-profit technology research firm that created body scans for the apparel industry.

According to a 2005 survey by Lovejoy’s firm, “a comprehensive analysis of body shapes and sizes hasn’t been conducted for several decades. This lack of research, in addition to the growing practice of vanity sizing — adding inches to clothing to make it appear that a woman wears a size smaller than she actually does — has created a disparity between the clothes available to the consumer and their actual body shapes and sizes.”

Retailers have been fixated about delivering the latest fashion, but not as attuned to providing the right size, said Marshal Cohen, chief industry analyst at NPD Group at the recent National Retail Federation (NRF) conference. “Getting the right fit is now the second-most important influence to why consumers buy,” he added. “Style is still the top reason to buy, but fit has moved up in importance.”

About 54 percent of consumers have difficulty in finding clothes that fit, Cohen said, and 68 percent don’t bother to try them on because they find it such an unpleasant experience. Retailers that provide consumers with the ability to customize their apparel size, could earn up to 25 percent more per purchase, Cohen said.

Retailers have been developing sizes based on standards that date back to body measurements taken before World War II, Lovejoy says. But the United States has become taller and heavier than previous generations, and only 10 to 20 percent of Americans fit the national standards.

As a result, retailers are pressing ahead with distribution tactics to ensure that they have the right sizes in stores. Some retailers have turned to demographic information, but it isn’t an exact science, due to a constantly changing population base and the complexity of planning sizes by departments.

In its study, Kohl’s created “size profiles” of stores based on demographics and selling patterns. Each store department contributed, resulting in hundreds of profiles per store.

“It was a large analytical effort,” Nordeen said at the NRF conference. “You just can’t say ‘a store is a small size store,'” he said.

Kohl’s was able to determine the amount of sizes to order per store and department. By the fourth quarter when the study ended, size allocation per store and sales improved “dramatically,” Nordeen says.

Technology is also helping slim down the one-size-fits-all strategy. Using body-scan technology, apparel retailers have been able to put “custom” clothes in consumers’ hands without the expense of a tailor. Online, some stores give customers the option to enter his or her measurements in order to make customized apparel.

In 2001, Sears, Roebuck Co.’s Lands’ End subsidiary started offering customized chinos. Early on, this helped draw traffic: more than 25 percent of customized clothing sales stem from new customers, according to Sears.

Other retailers, including Tommy Hilfiger, Target and J.C. Penney, now also offer custom apparel over the Internet. Retailers work with third-party software providers, such as Archetype, based in Emeryville, Calif., to develop scanning and software products.

Online retailers are also using computer software that creates three-dimensional body images, creating an “avatar” that shows how a custom piece of clothing will fit.

By Kathleen Kiley
Courtesy of http://www.kpmginsiders.com