Customized jeans, a new model business
There’s a new way of doing business on the denim jeans world. This new model is named Customized jeans, where you can pick your preferences on the internet website and your new denim jean will arrive to your home 3 weeks later.
As of today, there are just a few companies that are offering this new idea of satisfying a single person needs through an online market. Each customer could choose the size, color, style, trims, destructions, pockets, wording etc. The client could pay the jeans by using a credit card or COD (cash on delivery).
This model business does not require an investment plan since most of the companies that are doing this are manufacturing companies that already have all the required machinery, this is new way for them to get rid of keeping inventory of jeans that might not be sold in the future.
The production plans are based on the client’s demand, that is to say, the production plan per week or per month is generated by each order that a client request on line, that purchase order gets reflected on the customer service system. Also, an innovated option from this system is that the clients place a work order and this is automatically generated to the design area as a PO: Production order.
Salomon Juan Marcos Villarreal, president of Grupo Denim, a manufacturing company from Mexico, thinks that this new model is a great idea and a great solution to avoid high inventory levels. “ The economy is changing like I’ve said before, this new way of doing business is very profitable because there’s no need of a huge investment to execute, the production costs are similar to the actual system and the only risk that I see is that at least in Mexico, not so much people have inter access and since this is a new product, the price will be kind of expensive at the very beginning”, said Salomon Juan Marcos Villarreal.