January 27, 2019
According to a recent article in Forbes, consumer-centric business models may help you win in the retail business. In addition to offering a high-quality customer experience, this business model improves communication and increases customer loyalty.
Manufacturing-as-a-Service is one spoke in the wheel of a consumer-centric fashion business, which could help keep your business’ growth in line with the times. Keep reading to learn how Manufacturing-as-a-Service centers customers – and why it matters for businesses both new and established.
Manufacturing-as-a-Service, or MaaS, is a term used to describe a business that offers manufacturing services as their product. In a MaaS model, businesses hire a manufacturer who can create any number of products. The business purchases the manufacturing service as-needed to fill their inventory needs and receives a product for an end-user.
Traditional manufacturing companies, on the other hand, simply fill large orders of product and do not necessarily offer adaptive or responsive manufacturing services. In comparison, custom and on-demand manufacturers operating under the MaaS model are more flexible and responsive, and can even include ancillary services such as The/Studio’s free prototype design.
To compete with fast fashion, niche and unique retailers often offer custom and niche products. But while consumers want a product that will help them stand out in a crowd, they also don’t want to wait around for their product to arrive. MaaS helps businesses cater to consumers by providing quick turnarounds in manufacturing and therefore quick delivery to consumers.
Fast fashion is well known for the high amount of waste it produces throughout the manufacturing process, the variety of unfair labor practices, and the low quality of products. MaaS allows businesses to create a transparent supply chain in which the consumer can see exactly where, how, and when their product was made. This transparency can improve brand loyalty and consumer experience.
Today’s consumer is looking for something more unique than what’s on the shelves at big fashion retailers. They are looking for customization and a personal brand story that reflects their values and lifestyles. With MaaS, businesses can easily cater to consumers by creating the exact product a specific customer is looking for, and have it shipped directly to the consumer’s home.
Under the MaaS model, on-demand manufacturers understand that centering consumers doesn’t have to come at a cost to retailers’ bottom lines. While research shows consumers are actually willing to pay more for higher quality, higher transparency, and a better experience, manufacturing on demand also lowers upfront costs on your end.
The traditional manufacturing model has high minimum order requirements (MOQs) and long turnaround times, both of which result in high costs for business owners. With the large inventory that comes with high MOQs, maintaining a skinny business operation can be difficult and can result in high storage fees, shrinkage, and overstock and markdowns.
Manufacturing as a service, however, makes it simple for businesses to order what they need when they need it, keeping inventory (and costs) low.
The/Studio offers manufacturing-as-a-service with on-demand clothing manufacturing. With fast turnaround times and low minimum order quantities, we make it easy for businesses to get the products they need, exactly when they need them.
Want to learn more about how on-demand manufacturing can help you help your customers? Read Our Story today.