How to Scale Made-to-Measure: A Practical Guide

We have previously written on the environmental and economic benefits of mass tailoring. It’s crystal clear that the industry needs to reduce production volumes. But how can brands actually achieve this? How can we transition from bulk ready-to-wear (RTW) production to one-off made-to-measure (MTM) production? How do we move from theory to reality? This article will cover the main steps needed to transform a RTW collection to a MTM collection.

What is Mass Tailoring?

MTM production is still associated with men’s formal wear. But the future we envision is MTM for the many, not the few. With mass tailoring you don’t order a size medium, you order a size you. Whether it’s at H&M or Gucci – whether it’s a pair of jeans or a suit. This way, brands only produce what they actually sell, thereby drastically reducing production volumes. Which in turn, reduces emissions associated with overproduction. Which will be crucial to meet net-zero goals. 

The Objections

Sounds promising right? Many believe this is a utopian future. The most commonly heard objectives are: too expensive (±30% higher unit cost); too slow (1-2 months delivery time), and not scalable (manual production process).

Let’s debunk these objectives.Yes, MTM production is ±30% more expensive than RTW production. Fair point. However, even at the same price point as RTW, it’s four times more profitable. Because brands only produce what they actually sell. To the second objection, up until recently, MTM suits had a delivery time of 1-2 months. This is a very long timeframe, especially in a world where RTW clothes are delivered the next day. However, several MTM brands now ship in 1-2 weeks, rather than months. Because MTM manufacturers have figured out how to automate MTM production. And lastly, MTM production is done by old Italian tailors. Yes, some suits are still hand made in local ateliers, which is not a very scalable production method. However, many MTM manufacturers have set up a highly efficient and automated workflow. They’re now able to produce millions of MTM shirts and/or suits per year. We, in fact, can scale MTM, both for in-store and online sales. We’ll show you how.

Setting Up MTM For Scale 

Producing and selling MTM at scale is no small undertaking. We’ll cover the main considerations for brands to get started. For both in-store and online MTM sales. Let’s look the respective sales processes:

In-Store MTM Sales

Most current in store MTM processes are designed for MTM men’s suits. This includes fabric selection, style selection and manual measurements taken by the tailor. Which is a very personal customer experience. However, in order to scale MTM production, it pays to rethink this process. By letting customers customise their garment in store on a digital configurator and have their measurements taken by a 3D body scanner. We’ll go into more detail on the customer journey considerations in the next section.

Online MTM Sales

Online MTM brands have a completely different sales process. Online configuration combined with online measurements ensures a very smooth customer experience. In the next section we’ll dive deeper into the potential and limitations of this model.

How to Set Up MTM Sales and Production 

Step 1: Set KPIs

Why do you want to offer a MTM collection? To (re)position as a luxury brand? For a more elevated customer experience? To expand your customer base, e.g. revenue? To solve fit problems for your most popular styles? To increase margins? To reduce emissions? All of the above? It’s important to get clear on the why, so you can link KPIs to the why. 

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Let’s say one of the main goals is a more elevated customer experience. How can you quantify this? More foot traffic to the store? A longer time spent at the store per customer? Higher AOV per customer at the store? Shorter time between the next customer visit? Higher satisfaction rates on surveys? The same goes for returns. How are returns defined? On an order basis? An item basis? An order value basis? Upon defining returns, it pays to analyse which styles are returned most often – and why. Obviously MTM isn’t a magic solution that solves all the causes of high returns, so it’s important to set a realistic target return rate. For example, the average return rate in Europe for dresses is ±54%. Research results vary, but the overall conclusion is clear: ±70% of apparel ecommerce returns are returned because of poor fit. Assuming MTM can solve 95% of fit related returns, a realistic target return rate for dresses would be 19%. 

Step 2: Determining the MTM Collection

Upon establishing why you want to transition to MTM, it’s time to determine the MTM collection. Which styles do you want to offer MTM? A formal collection? A denim collection? A sports collection? Do you want to offer current RTW styles MTM? Or create an entirely new MTM collection? How will you position this collection in your brand? A MTM collection could replace the brand’s most popular RTW styles. It could also be used to expand into more formal wear. Or it could replace the RTW styles that have the most fit related issues. Whichever styles the brands agree upon, a price point needs to be set accordingly. This ties back to the brand positioning of the brand, and in turn, the collection. This will also be leading in finding the right manufacturing partner. 

Step 3: Determining the Customisation Options 

Now that you’ve selected the styles, it’s time to look at the degree of customisations you’d like to offer per style. There are a few things to consider when it comes to customising. On the one hand it seems attractive to offer as many custom options as possible, so every customer can find their desired choices. On the other hand, more choices can lead to more confusion and decision paralysis. More customisation options also lead to more complex (and therefore more expensive) manufacturing processes. The optimal balance is hard to find and it pays to test this internally and potentially externally as well. 

Step 4: Determining the Customer Experience 

Once you’ve determined the styles and their corresponding customisations, it’s time to look at the customer experience. How are customers going to customise their garment? Is the sales staff going to take the lead? Will there be a tablet in the store with configuration options? Or will there be an AR mirror where customers can see the effect of their choices on themselves? And once the garment is made, will it be shipped to the store, for a final fitting, or will it be shipped straight to the customer’s home? 

How do online customers customise their garment? On a ghost mannequin, on a sized avatar, or via a virtual try on? Do online customers have the opportunity to try on their MTM garment in store once it’s manufactured? Or is it shipped straight to their home? 

A lot of the considerations in the customer journey affect both the manufacturing process and the sales terms. 

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Step 5: Determining the Sales Terms

Here’s the tricky part, how far are you able to go in your commitment to optimal fit? Are unsatisfied customers entitled to a remake? Or a refund? Or not at all?  What does the remake process look like? Do customers bring their garment back to the store for alterations? Or is an entirely new garment made for them? For most traditional brick and mortar tailors, the suit is altered until the customer is satisfied with the fit. The same could apply for MTM jeans for example. The expected alteration percentage should be taken into account for the financials, since alterations with a local tailoring company is often costly.

And what about online customers: do they take a photo of their garment while they are wearing it? Or do they send it back to the warehouse for quality inspection? What will you do with the returned garments? Donate to charity? Or recycle them? Depending on the price point the brand sets, this becomes an ethical question as well. A remake could be more financially attractive than arranging alterations with a tailor near the customer. However, a remake would mean the original garment is either donated to charity or goes to waste. This is another example of taking into account the original KPIs. If sustainability is a high priority, alterations are the better option. If improving margins has a higher priority, a remake could be the better option. 

Step 6: Determining Source of Measurements 

Now that you’re clear on the customer journey, it’s important to think about the source of measurements. Will sales staff manually measure the customer? Or will there be a 3D scanner in the store? The first is probably more in line with the customer’s expectations. It is however, an error prone process. Only trained staff can take accurate measurements. The upside is that it’s a very personal experience. The latter is more accurate and offers the possibility of accounting for posture. Plus, it’s less reliant on the measuring skills of whoever is helping the customer. 

The online sales process requires different solutions. Will you only offer MTM garments to existing customers whose measurements are already in your database? Or will customers fill in a questionnaire (age, weight, height, shoe size)? Or will customers use their phones to scan themselves? Getting measurements online is a tricky process. While it currently works well for non-critical fit garments, it’s yet to be determined whether this approach also works for critical fit garments such as jeans and dresses.

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Step 7: Finding a Manufacturer 

Next up, finding a manufacturer to actually produce these MTM garments. Sourcing manufacturers can be complex and time consuming. I wish I had a better answer. However, it’s entirely possible to find MTM manufacturers that produce quickly, for reasonable rates. The Norwegian brand Rebeloup produces MTM shirts for men that are produced in China and delivered to the customer’s doorstep within 2-3 weeks. Manufacturers that have efficient drop shipping practices set up, are more attractive when you cater to online customers, especially if these customers are located in different geographical regions. While a hundred more pages could be dedicated to sourcing practices, when it comes to MTM production, it’s important to go back to the original KPIs. If reducing emissions is an important KPI, it’s necessary to find a (somewhat) local manufacturer. Furthermore, fabrics are an important consideration here. Will the brand ship its own fabrics to the manufacturer, or use the fabrics the manufacturer has on stock. The latter is quite obviously the easier option, but only a viable one if the quality of stock fabrics is up to par with the brand. 

Step 8: Finding a Pattern Development Solution

Once you’ve found a manufacturer that meets quality, lead time and cost requirements, it’s time to look into the pattern solution. This is critical to making sure the garments meet both the design of the brand, and the measurements of the customer. A lot of MTM manufacturers work with their own standardised patterns, to ensure a quick (and therefore cheaper) workflow. These standardised patterns, however, don’t necessarily match the brand’s original design. It’s therefore important to find a pattern provider that is able to work with the original patterns of the brand, while making sure they’ll fit the customer, and work seamlessly in the manufacturer’s production process. Furthermore, there are design choices to be made by the brand. If we take a pair of jeans as an example: let’s say the customer has a very narrow waist, and wider hips. In order to optimise fit, an extra dart should be added to the pattern. But if this dart is not in the original design, it’s a deviation from the original style. So the question is, do you want to optimise for fit or for design? This choice should be made by the brand and should be executed by the pattern provider. 

Step 9: Finding a System Integrator 

Keep breathing, we’re almost there. Automating the backend of MTM sales, production and fulfilment, is complex and requires a lot of IT knowledge that’s not necessarily always available in house for brands. It’s therefore important to find a good system integrator that is able to connect the entire backend, and ensure a smooth sales, production and fulfilment process. For both the customer, the brand, and the manufacturer. 

Example of a (very high level) modular architecture that the system integrator could set up:

*the above mentioned architecture excludes the fulfilment process once production is completed.

Step 10: Crunch the Numbers

Regardless of the motivation for offering a MTM collection, one thing is clear – money needs to be made. How will you assess the financials? How will MTM financials compare to RTW financials? Manufacturing costs, air freight, last mileage, production quantity, returns, alterations, remakes, deadstock. It’s not a plain and simple comparison. How do the current margins for RTW compare to the target margins for MTM? This analysis can be done both on a collection level, and on a style specific level. Another important aspect for this margin comparison is working capital. With most RTW sales, brands have a positive working capital (ranging from -12 to -2 months). With MTM, brands move to negative working capital (+2 days). This freed up working capital can be used to invest in the business. Finally, it should be noted that pilot margins are not commercial margins. After launching the first styles, brands will be able to optimise both the back-end and front-end to further improve margins for the commercial stage. 

Conclusion

Obstacles 

We’ve covered the main considerations for starting a MTM collection. Now let’s go into the possible obstacles ahead. 

The first obstacle is customer expectation. The perfect fit is not an objective outcome. It’s entirely dependent on the desires, and therefore expectations of the customer. Two customers with identical bodies could very well have different desires. One might like to be sucked in like Kim Kardashian, while the other prefers a more relaxed fit. How can customers communicate their fit desires? How can they translate this into a good pattern for the factory? And how far are brands willing to go to optimise fit according to their customer’s wishes? Is it better to remake a garment free of charge, learning about their fit preferences, and hoping they’ll become a returning customer? Or will brands not offer a remake, and risk losing (prospective) customers down the line? There’s no clear answer. Brands have to be willing to test, try, reiterate and optimise – both the process and the fit. Which will no doubt cost both time and money. 

The second obstacle is efficiency. One-off production is clearly not as efficient as bulk production. Fabric loss per garment will be higher for one-off production. But fabric loss per garment sold, will undoubtedly be lower for MTM garments, since there is less deadstock than with RTW. With increasing scale, manufacturers will be able to batch unique orders more effectively. However, with increasing scale also comes increasing complexity. Both the fabric stock and the order management require advanced management systems, and in turn more digitisation from sometimes somewhat analogue manufacturers. This digital transformation is not a small one. 

While these obstacles are significant, it’s the time the industry addresses them. We need to reduce output, legislation is coming for us left and right. There’s only so much you can optimise for within the RTW model. Let’s say we manage to reduce lead time from 12 months to 2 months – like Zara and Shein. This would already significantly reduce overproduction. But if we’re producing this close to real time, why not do it in actual real time and actually minimise overproduction in the process? Made-to-Order would already be a great improvement compared to RTW, but it doesn’t solve the underlying sizing, and therefore return issue. With MTM, everyone can afford to fit in. It’s about time we stop trying to fit eight billion people into five standard sizes. 

The Key to Success

We need to upend a trillion dollar supply chain – something that is no small undertaking. But it’s a problem we can no longer afford to ignore. We need to acknowledge that it’s our responsibility to fix the problem we created in the first place. And we can, with visionary leadership and novel partnerships, make mass tailoring a reality.

It won’t be easy, but it will be worth it.