Turn Product Safety Concerns Into Opportunity
Today the New York Times business section features a very enjoyable read for anyone who has been annoyed by the relentlessly cheerful Sesame Street character, Elmo. Mattel, the maker of a Dancing Elmo toy, is subjecting the little guys to dismemberment and destruction in a testing lab in China to ensure safety. In the wake of the recent spate of product recalls from the country, Mattel's longstanding (and commendable) commitment to safety and working conditions in its factories has become newsworthy.
Besides a little hit of toy-directed sadism, an intriguing BusinessWeek article emphasizes how your business can actually gain value from the crisis in confidence surrounding imports from the Asian giant. Author John Carey writes:
"Earlier this year, Swiss ingredient maker DSM Nutritional Products launched a "premium" Vitamin C. The marketing gambit: It comes from tidy Scotland instead of sprawling China, which provides 80% of the world's supply. But it was a tough sell."But, no more.
"After contaminated products from China ended up on supermarket shelves. Suddenly, "Not Made in China" has become a major selling point."According to DSM's communication chief, food and supplement companies are "moving away from decisions made just on price to something like a stamp or seal." Carey explains that, "DSM is creating such a seal, which would guarantee the quality, reliability, and traceability of its products. That's good for safety -- and for DSM's business."
Rather than see consumers' fear of Chinese products as a threat, Mattel and DSM, by a shift in perspective and some crafty marketing decisions, are finding ways to capitalize on the situation. DSM is building demand by spotlighting that their products are NOT made in China. Mattel has built a reputation for stringent safety testing and decent working conditions in its factories which is paying off in the wake of recent scandals.
So whether your business's supply line leads back to China, or your company provides a product that could pose a safety threat to consumers -- and that you can guarantee with a seal of safety -- opportunity knocks. For others, the lesson remains that creative thinking can turn a crisis into an opportunity.
(Image of Elmo by Mark Sebastian, CC 2.0)