“The Product Mindset” 2013, a UL global study

BANGALORE, INDIA: UL's annual global study on "The Product Mindset" shows that Indian manufacturer's race ahead of their Chinese and Brazilian counterparts in operating globally, and are at par with globalization efforts of manufacturers in Germany and USA. This is seen as an affirmation of increasing competitiveness and a bid to resolve challenges such as rising costs and global competition.

According to the study, as much as 88 percent of Indian manufacturers operate globally when compared to 68 percent in China and 64 percent in Brazil. Now in its third year, the study seeks to better identify the concerns and priorities of manufacturers and consumers, ensuring closer alignment, as well as gain insight into the consumers' decision-making process.

The study further reveals that Indian manufacturers (55 percent) are on par with those in Germany (50 percent) and USA (54 percent) on aspects of global operations (such as sourcing, manufacturing, distribution/sales and marketing/promotion), leaving behind their counterparts in China (32 percent) and Brazil (31 percent).

The context this year reveals that globalization is reshaping both the business landscape and collective mindset.

Perceptions on environmentally friendly products: Indian consumers are becoming more and more conscious about Eco-friendly products and the report clearly indicates that they are willing to go that extra mile. Interestingly, a very high percentage of Indian consumers (81 percent) are willing to pay more for Eco-friendly products than their counterparts. Nearly three-quarters (73 percent) of Indian consumers believe that manufacturers use Eco-friendly processes.

Perceptions on supply-chain practices: There is a strong-felt need to address the perception gap among manufacturers and consumers, when it comes to product safety, quality and supply chain practices. 77 percent of India's consumers believe that product quality has improved in the past five years, but 54 percent believe that manufacturers use low-cost materials regardless of quality.

Perceptions on regulatory norms: Product recall is conspicuous by its absence in India, and redressal by consumer forums is arduous. A tangible sense of optimism is emerging in India market with regard to regulatory norms. The study indicates that 79 percent of Indian consumers desire stringent regulations.

The Fundamentals in decision making are considerations like cost, price, quality, performance, safety reliability and innovation that define manufacturer success and consumer choice. Rising priorities are the emerging drivers of decisions that are becoming increasingly important. Factors like Eco-friendly manufacturing, health impact, ethical sourcing, are growing in both visibility and relevance.

The renewed optimism varies by audience and country, while the factors constituting the "Rising priorities" are becoming increasingly important, but for an emerging country like India "Fundamentals" still continue to be one the most important deciding factor for its purchase behavior.