Current trend of product customisation in retail sector

This report explores the current trend of product customisation in the retail sector and its impact on customer behavior. It aims to identify the benefits and analyze the prevailing trends in the industry. The report also provides recommendations for retailers to adopt customisation strategies.

Inquiry based learning

Table of Content
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
Rationale..........................................................................................................................................1
Hypothesis.......................................................................................................................................2
Literature Review............................................................................................................................2
Research methodology.....................................................................................................................3
Analysis...........................................................................................................................................4
Findings...........................................................................................................................................7
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
Appendix..........................................................................................................................................9

TOPIC
Current trend of product customisation in retail sector.
EXECUTIVE SUMMARY
This report is based on inquiry based learning with the help of which an understanding of a
topic is developed. The aim of the report is to identify various trends in the retail industry as this
will make them understand the behaviour of the customers. The determination of various factors
will help retailer to understand the requirement of changes in the technology so that they can
make their customers loyal and satisfied. Further it is important for the organisation to identify
the importance and influence on the customers of personalisation of the product, trends must be
analysed so that they can also adopt so and many more.
INTRODUCTION
Retail sector is UK is considered as the one of the largest sectors of the region because it
is contributing a huge amount in GDP of it. There are various trends which are taking place in
retail sector. Product customisation is one of the major trends in the whole industry. It is focused
by various organisations as it helps them to strengthen customer base. In order to grow the
business, it is essential for enterprises to make sure that they focus upon latest trends so that all
the growth opportunities in the market could be identified.
Aim of the project
“To identify the current trend of product customisation within retail industry”.
Objectives of the project
 To develop basis understanding about the product customisation in retail industry.
 To analysis the benefits of product customisation for retail industry.
 To determine the current trends of product customisation within retail Industry.
Rationale
Product customisation is selected for conducting the research because it is one of the
latest trends in retail sector which is required to be focused by all the companies such as John
Lewis partnership. With the help of it, enterprises will be able to attract large number of clients
which will be beneficial to achieve long term sustainability. By adopting this trend John Lewis
can launch such clothes that customers are willing to buy according to their requirements. It will
be beneficial for the organisation to strengthen the market share.
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Research Questions
 What is the importance of product customisation in the retail industry?
 What are the benefits of customisation in the products for the retail industry?
 What are the prevailing trends in the retail industry in context of customisation of the
product?
Hypothesis
For this research the various hypothesis that are drawn includes:
 The buying behaviour of the customers is directly related to the trends that are prevailing
in the market.
 Customisation in the product can facilitate them in dealing with the adverse impact on the
changes in the taste and preferences of the customers.
 Ethical consideration: When the information is gathered with the help of secondary
research it becomes important for the investigator to perform ethically. This will enable
them in avoiding the ethical misconduct. For this the authors and writers must be
presented whose has been used in the research so that outcomes can be made reliable and
authentic (Tang, Lai and Cheng, 2016).
Literature Review
To develop basis understanding about the product customisation in retail industry
According to Yamarie Grullon, marketplace has become a place where it is difficult for
the customers and for the marketer to provide their goods efficiently. For differentiation the
organisation provides customized products to the customers. In the retail industry various trends
are emerging with the increasing use of the social media, e-commerce etc. and with this the
customers has started preferring more personalized goods (Konings and Vanormelingen, 2015).
Even the small retailers are focusing upon leveraging personalized products as this facilitates
them to enhance their revenue.
To analysis the benefits of product customisation for retail industry
According to Tina Mulqueen, it is analyzed that the organisation themselves have started
focusing upon customization of the product as with this they can improve the loyalty of the
customers. The rise of the e-commerce played crucial role in promoting as for meeting up with
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the competition tailor made services are provide to the customers. This facilitate the organisation
in building and maintaining healthy relations with the customers by way of on demand
customization (Wijekoon, Huang and Badurdeen, 2018). For the retailers it offers various
opportunities as with this they improve the experience of the customers and can provide high
value services.
To determine the current trends of product customisation within retail Industry
According to Zakeke Admin, it is analyzed that the customers analyses themselves on
the basis of the personalized product that they offers. Due to which they prefers more of
personalization. This brings various trends in the industry such as use of artificial intelligence in
personalizing the offers, embracing the augmented reality so that the surroundings can be highly
personalized (Coetzee and Stoltz, 2015). Such customizations are provided with the help of
online shops, websites and even from the physical stores.
Research methodology
Research methodology is a framework with the help of which the investigators gathers
information by using set of techniques and methods. This facilitates them in collecting, analysing
and presenting the data effectively so that required outcomes can be achieved. On the basis of the
data and information so gathered, an investigator analyses them and make various
recommendation so that the problems can be resolved. Research methodology also helps the
investigator in identifying various techniques and methods that they can use for the particular
investigation (Mackenzie, Hoverman and Baldwin, 2012). For this study the methods that are
used by the investigator includes:
 Research Type: Before conducting any study it is important for the investigator to
determine the style of the study as with this can decide the direction of the study (Beins,
2017). The type of research can be qualitative and quantitative which are adopted by the
investigators as per the nature of the research. For this research quantitative methods are
taken into consideration as with this the opinion of the customers regarding customisation
of the product can be analysed.
 Data collection method: The data can be collected with the help of various sources but it
must be adopted by the investigator on the basis of the nature and requirement of the
authenticity. There are two data collection method that are used by the investigator
primary and secondary (Noe and Kodwani, 2018). In primary method of data collection
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the data are collected directly from the source while in secondary method already
gathered data and information are used. For this research data will gathered with the help
of both the sources. The primary data is gathered from the customers through
questionnaire while data about various factors that has impact on their behaviour and
competitors strategies are gathered from secondary sources.
 Research design: With the help of this the structure of presenting the data is analysed for
the gathered information. The designs of the research can be of three types descriptive,
exploratory and experimental. The use of these designs depend upon the investigators but
for this research descriptive design is taken into consideration as with the help of this
responses of the people will be analysed in detail. The data with the help of various
graphical representations becomes attractive and explanatory which makes it more useful
for the investigator and the organisation. This method of designing the research makes
the information clear and justified for analysing the information in an appropriate and
reliable manner (Levitt and Chapman, 2017).
For gathering information and analysing the opinion of the customers questionnaire is used
with which responses of the individuals are gathered. For this 20 customers were selected whose
responses are used for analysing the situation.
Analysis
Theme 1: Support of product customisation
Q1) Are you in favour of product customisation? Frequency
a) Yes 14
b) No 6
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Interpretation: On the basis of above graph it can be analysed that nowadays most of the
customers are in favour of customisation of the product as with this they can easily satisfy their
needs and wants.
Theme 2: Features that can be customised
Q2) Which feature of the product you want to be customised? Frequency
a) Size of the product 11
b) Packaging of the product 9
Interpretation: Out of 20 customers 11 were in favour of the customisation in the sizes of the
products. This is because with this they can procure what they require while some of the
customers believes that customisation in packaging is must.
Theme 3: Benefits of product customisation
Q3) As a customer what are the benefits of product customisation in
retail industry?
Frequency
a) Required quantity can be purchased 7
b) Required features can be added 6
c) Reduce cost for the customer 7
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Interpretation: On the basis of this graph it can analysed that different customers have different
perception in context of the benefits of the product customisation. They believe in equal number
that with this they can get required features, quantity and even reduces cost.
Theme 4: Sector that need more customisation
Q4) According to you which sector need more of product
customisation?
Frequency
a) Groceries 4
b) Electronics 7
c) Clothing 2
d) All of these 7
Interpretation: On the basis of this it can analysed that people are in favour of product
customisation in all segments. But customisation in electronic is preferred as with they can
increase the utility of the products for them. `
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Findings
 Customers prefer more technologically advanced products and services.
 Customisation is must in electronic industry.
 The customisation required most is in the size of the product.
Recommendations
On the basis of the above research and findings it is analysed that nowadays the organisation
for making their customers loyal and improving their experience by focussing upon
personalisation of the products so offered by them. For achieving the experience various
recommendations are made to the retail industry:
 With the use if more of digital technology better support can be provided to the
customers.
 Using the data of the customers personalisation and customisation in the products can be
provided.
 By focussing upon various touch points interaction with the customers can be improved
which will enable them retailers to understand the taste and preference of the customer.
 The offers of product customisation must be provide at point of sale so that the behaviour
of the customers can be managed.
 Regular feedbacks must be taken from the customers so that changes can be made on
significant basis.
Conclusion
From the above research it can be concluded that customisation of the product facilitate the
retail industry in satisfying their customers. Digital technology, growing e-commerce industry
has impact on the behaviour of the customers that has to be managed by them efficiently. On the
basis of the reaction of the customers it is concluded that the customers can be made loyal and
competition can easily be dealt with by offering personalised and customised.
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References
Books and Journal
Beins, B.C., 2017. Research method: A tool for life. Cambridge University Press.
Coetzee, M. and Stoltz, E., 2015. Employees' satisfaction with retention factors: Exploring the
role of career adaptability. Journal of Vocational Behavior, 89, pp.83-91.
Konings, J. and Vanormelingen, S., 2015. The impact of training on productivity and wages:
firm-level evidence. Review of Economics and Statistics, 97(2), pp.485-497.
Levitt, E.E. and Chapman, R.H., 2017. Hypnosis as a research method. In Hypnosis (pp. 85-114).
Routledge.
Mackenzie, J., Tan, P. L., Hoverman, S. and Baldwin, C., 2012. The value and limitations of
participatory action research methodology. Journal of hydrology. 474. pp.11-21.
Noe, R.A. and Kodwani, A.D., 2018. Employee Training and Development, 7e. McGraw-Hill
Education.
Tang, A.K., Lai, K.H. and Cheng, T.C.E., 2016. A multi-research-method approach to studying
environmental sustainability in retail operations. International Journal of Production
Economics. 171. pp.394-404.
Wijekoon, K., Huang, A. and Badurdeen, F., 2018. Model to evaluate and optimise sustainability
performance of customisable product service systems. International Journal of Strategic
Engineering Asset Management. 3(2). pp.134-153.
Online
Tina Mulqueen, 2017. The New Size Is Custom. [Online] Available through:
<https://www.forbes.com/sites/tinamulqueen/2017/08/25/the-new-size-is-custom-how-
retailers-are-using-personalization-to-win-customer-loyalty/#7293c44d1907>
Yamarie Grullon, 2018. The rose of Personalised Products in Retail Industry. [Online] Available
through: <https://risnews.com/rise-personalized-products-retail>
Zakeke Admin, 2019. Top 5 Product Personalization Trends [Online] Available through:<
https://www.zakeke.com/blog/product-personalization-trends/ >
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Appendix
Questionnaire
Q1) Are You in favour of product customisation?
a) Yes
b) No
Q2) Which feature of the product you want to be customised?
a) Size of the product
b) Packaging of the product
Q3) As a customer what are the benefits of product customisation in retail industry?
a) Required quantity can be purchased
b) Required features can be added
c) Reduce cost for the customer
Q4) According to you which sector need more of product customisation?
a) Groceries
b) Electronics
c) Clothing
d) All of these
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