New Study by TÜV SÜD Highlights Product Safety as a Key Determinant for Consumer Purchase above Brand.

1. PRODUCT
TÜV SÜD SAFETY GAUGE 2013
‘‘ Companies are overestimating
the cost required to achieve
exemplary safety standards
‘‘
SAFETY IN
Ishan Palit
Chief Executive Officer, TÜV SÜD Product Service Division NUMBERS
THE ECONOMICS Independent global research suggests rising consumer demand and
damaging annual recall costs mean investing in product safety can
OF PRODUCT SAFETY not only improve consumer wellbeing but drive commercial success.
RISING CONSUMER DEMAND BUSINESS EXPENSE
SAFETY ABOVE BRAND IN PURCHASING CRITERIA
CHILDREN’S PRODUCTS
1. Price 2.8 FREQUENCY OF
2. Performance 3.0
PRODUCT RECALLS
Companies have
9.8
3. Functionality 3.2
conducted an average
4. Safety 3.6 of 9.8 product recalls
5. Well-known brand 4.6 in the last five years
6. Safety labels 5.3
16%
0 1 2 3 4 5 6
AVERAGE ORDER OF PRIORITIES
FOOD PRODUCTS COST OF
PRODUCT RECALLS
Premium
1. Price 2.1
2. Freshness 2.5 Product recalls in the
9%
3. Food Safety (hygiene) 3.2 last five years have cost
77 per cent of consumers
4. Well-known brand 4.2
companies on average 9
are willing to pay an average
per cent of revenue
5. Safety labels 4.9 premium of 16 per cent over
6. Product origin 5.2 standard prices for products that
achieve exemplary safety standards
0 1 2 3 4 5 6
AVERAGE ORDER OF PRIORITIES
CONSUMER ELECTRONICS PRODUCTION
19%
COSTS
63%
1. Price 2.5
Companies estimate they
2. Performance 2.8
will need to increase
3. Functionality 3.3 of consumers say production costs by 19
4. Safety 4.2 product safety is per cent to achieve the
very important highest safety standards
5. Energy efficiency 4.8
to them now $
6. Well-known brand 5.5
£ available
0 1 2 3 4 5 6
AVERAGE ORDER OF PRIORITIES
STATE OF SAFETY
2012
2007
61% 56% 53% 47% 41% 70%
VARYING STANDARDS LIMITED TRACEABILITY MEETING REQUIREMENTS SAFETY AN ISSUE STANDARDS IMPROVING
61 per cent of businesses indicate that 56 per cent of organisations are Just 53 per cent of businesses can 47 per cent of businesses believe 70 per cent of businesses believe
safety standards of their products vary unable to trace all components in their guarantee that their entire supply chain product safety is a serious issue companies now exceed government
from market-to-market depending on products throughout their supply chain meets product safety requirements in their industry regulations, up from 41 per cent in 2007.
import requirements
The Safety Gauge is based on independent global research commissioned by TÜV SÜD to investigate consumer and business attitudes towards product safety. The research was
undertaken in the United States, the United Kingdom, China, India and Japan – markets that represent almost half (47 per cent) of worldwide Gross Domestic Product. It included
surveys of more than 5,000 consumers and 500 management-level employees in manufacturers, distributors and retailers that operate in the food and beverage, children’s products
and consumer electronics industries.
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