Effective implementation of standards will help win trust of Indian consumer

Stringent compliance automatically entails increased global market access and a heightened reputation for brands, translating into higher sales, says Suresh Sugavanam

Every year, October 14 is observed globally as World Standards Day to acknowledge and honour the relentless efforts of thousands of experts across the world, who work toward developing voluntary standards, in standards development organisations like the IEC, ISO and IEEE. World Standards Day also seeks to increase awareness about the criticality of adopting and implementing standards among governments, regulators and consumers. 

India may be one of the fastest growing economies with manufacturers regularly launching improved variants of consumer products, but we continue to lag behind in protecting the interests of our consumers, specifically in the form of legislation. 

Sample this:

• Have you ever thought why a product from a popular consumer brand available in, say, Europe or the US is more superior to the one available in India?
• Despite India’s global dominance in the textiles sector, there is product discrimination for the domestic market, with exports getting the better end of the deal. 
• A couple of years ago, twelve clinical thermometers (two each of six popular brands) were tested for accuracy against a precision laboratory thermometer. Every single one registered a different reading, even those which carried the same brand name. 
• Each year, several people continue to suffer from burns or electrocution from using faulty electrical appliances.

Why is this happening? Why does the average Indian consumer continue to remain at the receiving end of the quality conundrum? While India is inching towards turning a major hub for a large number of consumer goods, unscrupulous market practices and substandard goods continue to easily find their way into our homes, violating consumer rights and jeopardizing safety.

Indian consumer and the problem of low awareness on standards

The level of awareness of the consumer can be taken as an indicator of the progress of a country. Furthermore, the rural markets in India fall prey to a greater risk of exploitation by substandard products and services. This market is often subjected to enduring adulterated foods, short weights and measures, spurious and hazardous drugs, lack of safety in appliances to name a few. The rural consumers who generally depend on weekly markets to purchase essential things are often cheated due to lack of choice and frankly, poor awareness levels. Is it just the rural market? The answer is in negative.

According to an India Today report published last year, there are over 700 commonly used products which are subject to ISI standards, and yet only about 100 of them actually carry the ISI stamp. So far, there are only 350 manufacturers of consumer items who have earned ISI certificates. Do we consumers in urban areas really check if an electrical appliance has an authentic standards mark like the ISI, or do we demand for a signed and stamped warranty cards on appliances, whether our simple medical devices like thermometers or glucometers are calibrated correctly? 

As consumers we are constantly facing issues such as high prices, higher cost of distribution, unsafe products, poor service to the disadvantaged. Are we really aware about a standards regime in our country? How often do we demand for quality products from manufacturers?

Consumer awareness has a rippling effect. The more aware consumers are about the product they consume, the more pressure on the manufacturer for compliance to quality and safety standards. Stringent compliance automatically entails increased global market access and a heightened reputation for brands, translating into higher sales. In a sense, consumer safety is a hallmark of a vibrant economy, which thrives on both health and prosperity of its citizenry. 

The need to demand quality & safe products

Suresh Sugavanam, VP and MD, UL South Asia

To begin with, in urban settings, with rise in incomes, we are also willing to pay a premium for quality products and services. This willingness to pay a premium, coupled with the awareness to demand quality products and services is the stepping stone to ensure certainty and consistency in quality and safe products from manufacturers.

 A survey report by AmCham revealed that over 150 Chinese firms and foreign MNCs saw an increasing number of Chinese consumers in top-tier cities demand higher quality products and are willing to pay a premium for them. Both the Chinese and foreign companies view the demand for “greater value, quality and integrity in the products” as the most important trend, the survey found. This has forced Chinese innovation-oriented firms to sit up and take advantage of the demand for better quality products by using cutting-edge technology to create popular, high-quality ones. 

Isn’t it time that a huge consumer force in India come together to demand safety-compliant products, and, in turn, a safer world?

An emerging and growing economy is also a battleground of product differentiation. For instance, a consumer brand may introduce a less expensive variant of an existing high quality product to suit the pockets of a section of consumers. However, no matter the price point or the product, the basic tenants of safety and quality should not be compromised, no matter the price level or the product type, and that is where having a common criteria for basic minimum standards for products is important.  

Need for a redressal forum for consumers

In India, an unhappy consumer first approaches the company with his complaint on a faulty product or service. If the company is unable to address his complaints satisfactorily, then he can move the consumer courts. However, most times, the consumers may not have complete access to the company or product information, purely because of their low levels of awareness towards redressals. Unfortunately, The Consumer Protection Act, 1986, does not contain any provision for product recall, and consumer products in India are sold with a guarantee or warranty to replace the product with a new one or removing the defects in the product. 

It is time India demands safety-compliant products! 

Consumers have a right to be informed about the quality, quantity, safety, standard and price of products or services. In addition to the legal route, industry bodies, such as the CII and FICCI are open to engagement to report cases where consumers have been shortchanged by companies. Indian consumers should be aware of various avenues in which the can address their grievances. 

An imperative aspect of ensuring product safety is the need for mandatory safety certification of products and services. Several consumer products are sold without an appropriate safety certificate and can prove to be potentially hazardous for consumer use. Along with a quality check (QC), if a product also qualifies to be ‘Safe for use’ with requisite safety certificates, it is a win-win for both consumers and manufacturers. 

Along with safety certification and consumer awareness, what India essentially needs is a strong enforcement of existing legislations. The onus lies on the government and regulatory bodies to help raise awareness and develop a culture where consumers know their legal rights and have a platform to raise their concerns against unsafe and substandard products. Irrespective of the product, its price cap, it is time the consumer stood up to demand safety-compliant, quality products and services!
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Suresh Sugavanam is the vice president and managing director of UL South Asia