Okonkwo Prelims

(Joyce) #1
multiple if consumers are provided with the opportunity to modify this bag
using other materials existing in the product range, such as the Monogram
Multicolore, the Suhali leather, the Monogram canvas, the Damier canvas and
so on. There could also be the possibility of combining several materials and
components to customize this bag. This might compose of using different
body materials, hardware materials and attachments such as logo-ed hard-
ware parts. The possibilities for customization are endless.
The processes of customizing standardized products and developing
customizable products are not limited to design, production and sales. This
process affects the complete value chain of a luxury brand, from product
development and manufacture to marketing, retailing and delivery. The value
chain is a business analytical framework, developed by notable business
expert Michael Porter. It aids in the evaluation of specific aspects of a

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luxury fashion brandingFigure 8.2 The Louis Vuitton Passy bag exists in one material and two-colour,
size and price choices, limiting consumers to a standardized product. Some of
the alternative material choices that could be used by consumers to customize
and modify whole or parts of the bag include the monogram canvas and other
materials used by Louis Vuitton. This strategy could also be applied to other
products.

Development
Standardized
products and
services

Production
Standardized
products and
services

Retailing
Customized
products and
services
produced with
standardized
methods

Delivery
Both
customized and
standardized
products and
services

Figure 8.3 The changes that occur in the value chain during the customization
of standardized products and services
Source: Adapted from B. Joseph Pine II (1997) Mass Customization: The New Frontier for
Business Competition.
Note: Coloured areas indicate changes.
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