Perceived cost barriers to improving safety are unfounded
The research findings present an opportunity for businesses to turn consumers’ increasing product safety demand into a business advantage. TÜV SÜD Safety Gauge reveals that consumers are becoming more discerning and placing increasing value on the importance of product safety. Businesses, on the other hand, continue to place safety at the top of their agenda but expect increasing safety measures to come with costs.
The two sets of perceptions reveal how cost barriers to improving product safety can be overcome. Contrary to businesses' perception, investing in enhanced product safety can improve consumer well-being and drive commercial success at the same time.
Safety as a compelling business case
There is a compelling business case for increasing safety driven by escalating consumer demand, price premium for safer products and substantial potential losses from product recalls. The increase in production costs, estimated by businesses to be on average 19%, to elevate product safety levels to that of the highest in the industry, can potentially be offset by:
- The price premium averaging 16% over regular selling price which consumers are willing to pay for products that achieve safety standards that are above and beyond what is required as mandatory by the government and verified by a credible independent third-party.
- Avoiding the potential loss of an average of 9% in revenue arising from product recalls.