[New Study] TÜV SÜD SAFETY GAUGE 2013: Product Safety in Numbers

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

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[New Study] TÜV SÜD SAFETY GAUGE 2013: Product Safety in Numbers

  1. 1. PRODUCTTÜV SÜD SAFETY GAUGE 2013‘‘ Companies are overestimating the cost required to achieve exemplary safety standards ‘‘ SAFETY IN Ishan PalitChief Executive Officer, TÜV SÜD Product Service Division NUMBERSTHE ECONOMICS Independent global research suggests rising consumer demand and damaging annual recall costs mean investing in product safety canOF PRODUCT SAFETY not only improve consumer wellbeing but drive commercial success.RISING CONSUMER DEMAND BUSINESS EXPENSESAFETY ABOVE BRAND IN PURCHASING CRITERIA CHILDREN’S PRODUCTS1. Price 2.8 FREQUENCY OF2. Performance 3.0 PRODUCT RECALLS Companies have 9.83. Functionality 3.2 conducted an average4. Safety 3.6 of 9.8 product recalls5. Well-known brand 4.6 in the last five years6. Safety labels 5.3 16% 0 1 2 3 4 5 6 AVERAGE ORDER OF PRIORITIESFOOD PRODUCTS COST OF PRODUCT RECALLS Premium1. Price 2.12. Freshness 2.5 Product recalls in the 9%3. Food Safety (hygiene) 3.2 last five years have cost 77 per cent of consumers4. Well-known brand 4.2 companies on average 9 are willing to pay an average per cent of revenue5. Safety labels 4.9 premium of 16 per cent over6. Product origin 5.2 standard prices for products that achieve exemplary safety standards 0 1 2 3 4 5 6 AVERAGE ORDER OF PRIORITIESCONSUMER ELECTRONICS PRODUCTION 19% COSTS 63%1. Price 2.5 Companies estimate they2. Performance 2.8 will need to increase3. Functionality 3.3 of consumers say production costs by 194. Safety 4.2 product safety is per cent to achieve the very important highest safety standards5. Energy efficiency 4.8 to them now $6. Well-known brand 5.5 £ available 0 1 2 3 4 5 6 AVERAGE ORDER OF PRIORITIESSTATE OF SAFETY 2012 2007 61% 56% 53% 47% 41% 70% VARYING STANDARDS LIMITED TRACEABILITY MEETING REQUIREMENTS SAFETY AN ISSUE STANDARDS IMPROVING61 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 believesafety 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 requirementsThe Safety Gauge is based on independent global research commissioned by TÜV SÜD to investigate consumer and business attitudes towards product safety. The research wasundertaken 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 includedsurveys 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 productsand consumer electronics industries. www.tuv-sud.com/safetygauge | #safetygauge

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