To be precise, the term ‘mass customization' is an oxymoron, as it conflates the opposing concepts of ‘mass production' and 'customization'. Mass Customization, in the world of business models, refers to the process of customizing products to meet customer needs while maintaining the same level of efficiency as traditional mass production. This is made possible by modular product architectures that are standardized. Individual modules can be combined to create an infinite number of end products, providing customers with an array of options to suit their unique tastes. The benefit to customers is that they can purchase bespoke products without having to pay a premium for them. Mass Customization of services is a way for businesses to differentiate themselves from mass-producing competitors. It is also likely to result in closer relationships with customers, who will feel a sense of personal ownership over their products. Customers' emotional attachment to their products is then projected onto the company as a whole.

When and how to apply Mass Customization:

This pattern responds to customers' growing desire for personalized and customized products and solutions. Increased customer loyalty and increased sales are the rewards for providing customized products and services. Mass customization is applicable to all industries and is applicable to both products and services. To be successful with this pattern, you must have the back-end systems necessary to handle the resulting complexity. If you rely heavily on industrial automation, Mass Customization may be of particular interest to you. The more intelligent your value creation processes, which may include online ordering, computer-aided manufacturing, and robotic assembly, the easier it will be to reconcile individuality and economies of scale in mass production.
Well-known companies that use this pattern are Spotify and Ikea.