Consumers willing to pay extra for safety
Safety concern is high as consumers are willing to shell extra bucks for highest standards, said a study released by TÜV SÜD, a German-based testing, inspection and certification services provider. It says customers are not ready to compromise on the safety aspect especially in consumer electronics, children's products and food categories.
The study, Safety Gauge, found that more than 70% of consumers are willing to pay an average premium of 16% over standard prices for products that achieve exemplary safety standards.
"Consumers now place product safety above brand while making purchases and demand increased transparency in safety labelling," said Ishan Palit, CEO, product service division, TÜV SÜD.
In the last five years, almost 51% of respondents have experienced unsafe products - such as cuts from sharp edges, allergic reactions and injuries from product design, which has led to the shift. Due to this, 63% of consumers now consider the importance product safety, up from 47% in 2007.
But safety comes at a cost. Companies, which make products complying safety standards, estimated that the production cost will go up 19% to achieve the highest safety standards," said the study covering 5,000 consumers across the US, the UK, China, India and Japan.