Friday, June 27, 2008

The Indian experience

India was never really in the radar of product recalls till a few years ago. The US market records nearly 50 recalls across product and services verticals ev- ery month; In 2006, the UK had a record 92 reported recalls; while FY’07 saw the number of recalls in Australia cross 117. In contrast, the counting in India has only just begun. As globalisation further sinks its teeth in the Indian panorama, the phenomenon will only rise. While the Nokia battery recall may be the first by a consumer electronic recall in the country so far, recent recalls issued by heavyweights such as Cadbury, Honda Siel and Mattel have already exposed the market to the fault lines in the MNC edifice. Atul Ahuja of Bengaloorubased brand consultancy firm, Vertebrand, believes that the consumer in India is plain unaware of product recalls. He blames it on the lack of any consumer rights push in the country, prompting recalls. “If he (Indian consumer) buys a faulty product, he simply blames it on destiny. Honda Siel recalled products in India some time ago, but if it were not a premium product, I doubt that they would have bothered. Similarly, if this battery scare was not global, I doubt if Nokia would have even bothered with the India recall,” he adds. The situation is a far cry from one in the US, where consumers are becoming increasingly disgusted with the growing number of recalls.

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Source :
IIPM Editorial, 2008

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