Clothing company ModCloth, whose target demographic is 15-35 year old women, is using social media to determine what products get produced. Customers vote through Facebook/Twitter and only designs that garner enough votes will move forward. This is unique because it is reducing (eliminating) the role of the buyer. This direct feedback from customer to designer helps to eliminate unsold stock. The company also runs a "Name It and Win It" contest where users submit names for new products and if they win, they receive the product. ModCloth is winning on 2 fronts here; first the improvements on their supply chain and second building an active and engaged customer base.
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(submitted by Tom)