Wednesday, February 16, 2011

Programmes to make people aware about consumer rights Read more: Programmes to make people aware about consumer rights - The Times of India http://ti

LUCKNOW: The UP government will organise a series of informative programmes to make consumers aware of their rights and to mark the National Consumer Day on December 24. The theme for this year is 'Consumers! discharge your responsibility: Assert your rights'.

Principal secretary, consumer protection and weights and measures, JN Chamber said that cooperation from all government departments is needed to create awareness among consumers. The government will organise seminars, exhibitions, rallies and workshops to sensitise consumers about their rights and responsibilities. The significant and important judgments from consumer forums will be distributed among people to make them aware on their rights as consumers.

The government plans to create awareness about the Consumer Protection Act, 1986, which provides for promotion and protection of the rights of the consumers. The provisions of this Act cover goods as well as services.

People will be told that written complaints can be filed before district consumer forum for demanding compensation upto Rs 20 lakh whereas complaints demanding compensation between Rs 20 lakh and Rs 1 crore can be filed at state commission and cases demanding compensation more than Rs 1 crore can be filed at national commission. However, no complaint can be filed for alleged deficiency in any service that is rendered free of charge or under a contract of personal service.

Consumers can file the complaint in case of deficiency of service, sub-standard products, shoddy goods, false assurances, mis-representation, restrictive trade practices, over-charging or hoarding, in case of goods being hazardous to life and safety and when company/organisation refuses to reimburse your bills. Schools, colleges and educational institutes will organise debate, quiz and essay competitions on National Consumer Day. The government plans to organise several programmes during the week following the Day.

Protection Against Unfair Competition

Protection against unfair competition has been recognised as one of the main objectives of intellectual property system. It does not grant exclusive rights to the owners with respect to the subject concerned, like in the case of patents, trade marks, etc. Infact, it prohibits any act of competition that is contrary to honest practices in industrial or commercial matters, referred to as "unfair competition".

The acts of unfair competition not only adversely affect the competitors, which tend to lose their customers and market share; but also affect consumers as they are likely to be misinformed and mislead and tend to suffer economic and personal prejudice.

The following acts of unfair competition are closely related to IP and are directly relevant to consumer protection:-
  • all acts of such a nature as to create confusion by any means whatever with the establishment, the goods, or the industrial or commercial activities, of a competitor
  • false allegations in the course of trade of such a nature as to discredit the establishment, the goods, or the industrial or commercial activities, of a competitor
  • indications or allegations the use of which in trade is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for their purpose or quantity, of the goods.
Whatever form unfair competition may take, it is in the interest of the honest and legitimate entrepreneur, the consumer and the public at large that they should be prevented from it as early and as effectively as possible. Free and fair competition between enterprises is considered to be the best means of satisfying supply and demand in the economy as well as of serving the interests of consumers and economy as a whole. This stimulates innovation and productivity and leads to the optimum allocation of resources in the economy; reduces costs and improves quality; as well as accelerates economic growth and development. Hence, In India, the Government has formulated a Competition Policy which protects the interests of consumers and producers by promoting and sustaining a fair competition.

Further, fair play in the market place cannot be ensured only by the protection of industrial property rights. A wide range of unfair acts, such as misleading advertising, violation of trade secrets, etc., are usually not dealt with by specific laws on intellectual property. Thus, it is necessary to enforce Unfair Competition law to supplement the intellectual property laws and to grant fair protection to consumers.

Suggestions or Opinions

In today's changing market scenario, there is an increasing necessity of empowering the consumers through education and motivation regarding their rights and responsibilities. He/she should be equipped to be fully vigilant so as to be able to protect himself/herself from any wrongful act on the part of the seller/trader. Several steps have been taken by the Government, both at the Central and State level towards generating awareness among the consumers. Given all such initiatives, it is the responsibility of the consumer as well to keep in mind the following suggestions:
  • Purchase products only after their complete scrutiny and not at the cost of attractive advertisements.
  • Keep check on the weighing and measuring instruments used by traders.
  • Avoid buying fruits and vegetables from unhygienic place.
  • Check print of MRP on the packet.
  • Check the quantity as per the figure printed on the packet.
  • Check the expiry date of the product, particularly that of eatables and medicines.
  • Always collect bill at the time of purchase.
Moreover, the packaging and appearance of the product should not be the guiding factor for consumer purchases. Along with cost consideration, consumer must be cautious of the quality of the product. Most importantly, it is the prime responsibility of a consumer to bring to the notice of the concerned authorities, any violation in their rights.

Issues and Problems

Globalization has made the world smaller by integrating the global markets. This has exposed the consumers to the wide range of products and services available in the market. It has, on one hand, given them a greater choice of products and brands with lower costs. While, on the other hand, it has made consumers more and more quality consciousness and aware of their rights. As a result, they are able to voice their concerns about various problems and issues faced by them.

Some of the commonly raised problems are:

  • Adulteration of food substances by traders through addition of substances which are injurious to health or removal of substances which are nutritious or by lowering their quality standards
  • Misleading advertisements of goods and services in television, newspapers and magazines to influence the consumers demand for the same
  • Variations in the contents filled in the package of goods
  • Improper delivery of after sales services
  • Supply of defective goods
  • Hidden price component
  • Use of deceptive or incorrect rates on products
  • Use of false or non-standard weights and measures in supply of goods
  • Production of low quality goods in bulk quantities
  • Illegal fixation of Maximum Retail Price (MRP)
  • Selling above the MRP
  • Unauthorized sale of essential products like medicines, etc. beyond their expiry date to ignorant consumers
  • Poor customer services
  • Non-compliance with the terms and conditions of sales and services
  • Supply of false or incomplete information regarding the product
  • Non-fulfilment of guarantee or warrantee etc.
All such issues and problems must be handled more efficiently both at the Centre and the State level, with a view to protect the interests of the consumers and promote their welfare.

Guarantees, warranties and refunds

As a consumer, the law automatically provides you with guarantees on certain goods and services. These are called consumer guarantees.

You are guaranteed that the goods you buy:

  • are of acceptable quality
  • match the description, sample or demonstration model you were shown
  • are fit for their intended purpose
  • have clear title, unless otherwise stated
  • do not have any undisclosed securities (money owing on them)
  • come with a right to undisturbed possession
  • will have spare parts and repairs available for a reasonable amount of time after you buy them
  • will have express warranties honoured.

You are guaranteed that the services you buy are:

  • provided with due care and skill
  • fit for purpose
  • completed within a reasonable time.

If a good or service fails to meet a guarantee, you have rights against the business you purchased them from and, in some cases, the manufacturer. They will have to provide a ´remedy´-an attempt to put right the fault, deficiency or failure.

Tuesday, February 15, 2011

Consumer Packaged Goods

Consumer packaged goods (CPG) are consumable goods such as food and beverages, footwear and apparel, tobacco, and cleaning products. In general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture. Although the CPG industry has been slow to invest in new technology, it is increasingly turning to computerized and Web-based applications for customer relationship management (CRM), supply chain management (SCM), enterprise resource planning (ERP), and marketing automation. A number of vendors, including Oracle, SAP, and Siebel Systems offer products for the CPG sector.

Consumer packaged goods are the everyday use items that consumers purchase mostly from supermarkets. They include food and beverages, cosmetics, skin care, hair care, feminine care,home cleaning, and detergents. The most striking feature of this industry is the wide range of consumer needs and preferences involved. The buyers can be considered fragmented in the sense that there is no single marketing strategy that can effectively address all consumer needs. A retailer has a particularly important role to fulfill in the supply chain i.e. aggregation of demand and supply. We discuss below the unique characteristics of the CPG Industry that have significance for the use of Web.

The CPGI consists of low-value products that have can be considered “mundane.”Consumer goods can be considered non-durable and most individual purchases of consumer products are of low value. The margins for the manufacturer and the retailer on these products are very low, but they rely on the high turnover of the products to be profitable. Thus, it is critical to provide a very good product and channel experience to the consumer on a continual basis to ensure maximum consumer satisfaction.

Products within the CPGI have short-product lives and are frequently re-purchased. Many of these products are considered necessities and demand is typically steady. The consumer’s need from many products within the industry is long-term (e.g., feminine care products), with some being life-long (e.g., deodorant, soaps). However, the demand for a specific brand within the CPGI is influenced by several factors, including price of the product, the consumer’s discretionary household income, the demographics of consumers, and the innovation of the product (Standard & Poor’s, 2000).

The CPGI is highly competitive across brands. Consumer products are closely associated with and differentiated by brands. Brands are an important way, other than the actual product experience, that the product benefits are communicated to the consumer. Consequently, consumer goods manufacturers spend enormous efforts at building their brands and media is a critical component of brand building. Major consumer goods manufacturers, such as Procter & Gamble and Unilever are known to be big advertisers in television and radio.

It is difficult for CPGI companies to raise product prices. The CPGI is saturated (Standard & Poor’s, 2000) and highly competitive. This makes it difficult for companies to raise prices despite any increases in raw materials cost.

It is becoming more difficult for consumers to differentiate competing brands as the number of product introductions is continually increasing.
Companies within the industry are frequently enhancing older product lines, while new product lines are also be introduced. The innovativeness of a product can enhance the demand for the product. Being the first company to market a new product type is advantageous within this industry as it takes considerable effort to lure customers away (Standard & Poor’s, 2000). However, as more brands and product features are offered, it will become harder for consumers to differentiate among the products that are offered.

It is difficult to develop brand loyalty since switching costs are low. Even though the value of each purchase is relatively small, a loyal consumer is likely to purchase the products several times over his/her lifetime. But the low switching costs make consumers to easily switch their brands, if their experience with the existing brands is not satisfactory. Thus, organizations are constantly struggling to increase the bond between the consumer and the brand, by personalizing the products and offering superior customer service. However, brands that are strong within the industry tend to develop a competitive advantage through the loyalty of its users.

Private-label goods are becoming more accepted by consumers
. However, some branded products are protected by emotional factors and consumer doubts regarding the quality of the private-label good (e.g. health and beauty products).

Low growth in sales is expected in the United States.
Only small increases in the U.S. population and in the number of U.S. households are expected in upcoming years. In order to increase sales, CPGI players will need to gain market share from competition in the domestic market or they will need to focus on strengthening their positions in international markets. Finding new ways to reduce current costs also will become important as companies work to improve profitability in this tight market.

An aging population will change consumption patterns. This will lower the demand for certain products types (e.g., household maintenance products) while other product types, specifically those with features that appeal to older consumers (e.g., anti-aging health care products), will grow in demand.

Women are the primary purchasers of CPGI products. Women form the major target group for the messages of consumer goods companies. Several consumer products, such as skin careand beauty care, are addressed directly to women. Other products, such as food and beverages,home cleaning and detergents are addressed to women as the primary decision makers or decision influencers. In addition to the media choice, companies have to decide on the type of programs they sponsor, so as to attract the attention of their target audience.

New distribution channels are needed to meet today’s consumers. CPGI companies need to expand their distribution channel from the traditional outlets (e.g., Food, Drug, Mass
Merchanding Retailerst) to other outlets that will be accessible to consumers.As we can see from the above characteristics, marketing consumer goods involves constant
feedback from consumers about their experience with the products and the ability to rapidly respond to the consumer needs and preferences. Further, since the manufacturers are far removed from the consumers, they have to rely on the information supplied by the retailers to understand the demand for their products. With the emergence of the Web as a new channel, consumer goods manufacturers are hoping to overcome these limitations and create a closer relationship with their consumers in order to serve them better and be their preferred brands.

Characteristics of Products

  • Low-value
  • Mundane
  • Non-durable
  • Low margin
  • Frequently re-purchased
  • Short-product life
  • Considered necessary
  • Low switching costs
  • Women are primary purchasers
  • Product selection influenced by: price, discretionary household income, consumer demographics, and product features.

Characteristics of Industry

  • Demand for products is steady
  • Highly-competitive
  • Difficult to raise product prices
  • Difficult to develop brand loyalty
  • Difficult for consumers to differentiate among brands
  • Product introductions are increasing
  • Private label goods are becoming more acceptable
  • Low growth in sales expected in the U.S.
  • Consumption patterns change as population ages
  • New distribution channels are needed

Indian Handicrafts Trade Promotion Network

  • Indian Oilseeds & Produce Exporters Association (IOPEA)
  • Exporters India - offers business listings for exporters in India.
  • Indian Exporters Directory - directory of Indian importers, exporters, and manufacturers.
  • Indian Exporters - includes information on government offices and export councils
  • Indian Apparel Manufacturers - manufacturers and exporters of garments for ladies, gentlemen, and kids
  • Indian Auto Industries - manufacturers and exporters of automotive components axles and spanners.
  • Great Indian Bazaar - catalog of Indian products from manufacturers and exporters.
  • Metro Exporters - exporters of bicycles, pharmaceuticals, diesel engines, textiles, plastics, and more.
  • V-Star Creations - manufacturers and exporters of fashionable ladies apparels
  • Seeba Exporters - offering stainless steel, copper, and plastic cookware and accessories.
  • Marble & Granite Tarikh Export House - exporters of Indian marble and granite.
  • Trade India - Indian Importer's Directory and Trade India Bulletin Board.
  • Chic Avenue Fashions - manufacurers and exporters of traditional womens' wear.
  • Ann' Artome - exporters of assorted Indian handicrafts and gifts.
  • Jivraj Tea - manufacturers, processors and exporters of Indian tea.
  • F.A.R. Brass Products - manufacturers and exporters of Indian metal handicrafts
  • Sangeeta Granites Limited - manufacturers and exporters of sculpted Indian stonework and monuments.
  • MAS Enterprises Limited - exporters and auctioneers of spices
  • MVJ Foods Private Limited - manufacturers and exporters of different range of curry powders
  • AutoIndia.Com - database of Indian auto and related manufacturers, exporters/importers, and suppliers.
  • F.A.R. Brass Products - manufacturers and exporters of Indian metal handicrafts
  • Inet India Business Network - comprehensive network of Indian trade promotion organizations
  • Mandaliyaa Overseas Pvt. Ltd. - manufacturers and exporters of traditional Indian garments
  • Trimbak Industries Ltd. - manufacturers and exporters of terry and other towels and related products.
  • Autopack Machines Pvt. Ltd. - manufacturers and exporters of packaging machinery
  • Pasupati Fabrics Ltd. - manufacturers and exporters of cotton yarn, and knitted and woven fabric
  • Aarcom International - exporters of fishing equipment and accessories.
  • Aval Exports - manufacturers and exporters of beaded garments and house furnishings.
  • Chrishiv - manufacturers, retailers and exporters of salwaar kameezes, lachaas, and chaniya cholis.
  • Luxor Writing Instruments - manufacturers and exporters of pens
  • Surya Global Ltd. - manufacturers and exporters of steel pipes and tubes.
  • South Seas Distilleries and Breweries Pvt. Ltd. - manufacturers and exporters alcoholic beverages.
  • Punihani International - exporters and manufacturers of leather garments
  • Hicon Group - manufacturers and exporters of air conditioners, diesel generators, and aqua coolers.
  • EI Industries Limited - manufacturers and exporters of stainless steel wires and electric cables
  • Jairamdass Khushiram - exporters of herbs, herbal extracts spices, and dry fruits.
  • Mangla Group - manufacturers and exporters of bicycle components.
  • Dipchem Industries - manufacturers, suppliers, and exporters of pharmaceuticals and chemicals.
  • Panchsheel Organics Ltd. - manufacturers and exporters of bulk drugs and intermediates.
  • Shaktimaan Zippers - manufacturers and exporters of fashion accessories.
  • Essaar P.U. Soles - manufacturers and exporters of shoes, soles, and slippers.
  • NB Footwear Limited - manufacturers and exporters of hand sewn leather footwear.
  • R H Exports - exporters of gems and jewellery.
  • Goldiam International Limited - International Diamond Jewelry and Diamonds Exporters
  • Ajanta Leather Fashion Ltd. - manufacturers and exporters of leather goods.
  • Crescent Export Syndicate - manufacturer and exporters of handbags and small leather goods.
  • Kiran Fashion - manufacturer and exporters of high fashion leather goods and garments.
  • Rika Enterprises - manufacturers of hotel linen, and exporters of bed, bath, and table linen.
  • MB Exports International - exporters and manufacturers of leather jackets and garments.
  • Teja Industries- manufacturers and exporters of hidecraft leather goods.
  • PLT Industries - manufacturers and exporters of ball, needle, roller, and thrust bearings.
  • PNK Paramount - manufacturers and exporters of industrial circular knives
  • Surbhi Cables - manufacturers and exporters of coaxial, multicore, computer, and shielded cables.
  • Allen Solly - exporters of men's shirts, trousers, and ties.
  • Mohan Clothing Co. - manufacturers and exporters of formal suits, sports wear, and more.
  • Page International - knitwear garment manufacturers and exporters.
  • Sahiba International- manufacturers and exporters of garments for men, women, and children.
  • Dossa Harjee Regd.- manufacturers and exporters of cotton canvas,sheetings and industrial fabrics.
  • Ekta Exports - manufacturer and exporters of fabrics
  • AA Arts - manufactures and exporters of handicrafts.
  • Kalpetta Estates Limited - exporters of natural, block and raw rubber, latex, mats, and other products.
  • Shree RubberPlast - manufacturers and exporters of plastic packing material and other plastic goods.
  • Allied - manufacturers and exporters of oil seals and gaskets.
  • Designs India - exporters of decorative wrought iron objects and other handicrafts.
  • Odyssey Exports - exporters of terracotta, papier machie, paintings and more.
  • Ajmera Group - exporters of machinery and tools.
  • Pioneer Arts - manufacturing exporters of decorative items, and lamps.
  • Sea Shells International - exporters of engraved, ceramic finished, and dyed shells.
  • Shamken Group - manufacturers and exporters of fabrics and garments.
  • Anchor Engineers' Files - manufacturers and exporters of steel engineers' files.
  • Sage Metals Limited - manufacturers and exporters of fully machined cast components
  • Narang Enterprises - exporters of hospital, surgical, dental, medical goods
  • Cannula - manufacturers and exporters of medical disposables.
  • Classic Finishers - manufacturers and exporters of micro-gold plated imitation jewelry.
  • Gem-Impex - manufacturers and exporters of pearls, pearl jewelry, diamonds, and diamond jewelry.
  • Sangam Chains - manufacturers, wholesalers, and exporters of gold jewelry and chains.
  • Nikki International - exporters of hand made terracotta pottery.
  • Palbro Industries - manufacturers and exporters of automobile and light engineering goods.
  • Jindal Pipes Limited - manufacturers and exporters of ERW steel pipes, tubes, OCTG, and scaffoldings.
  • Allied - manufacturers and exporters of oil seals and gaskets.
  • Admir Ovens - manufacturers and exporters of industrial ovens.
  • Choksi Group - manufacturers and exporters of cooling towers and spare parts and clothing.
  • Speedo Plastics - manufacturers and exporters of plastic moulded products.
  • Carni Exports - manufacturers and exporters of coir and jute mats, interior floor furnishings, and more.
  • PLT Industries - manufacturers and exporters of ball, needle, roller, and thrust bearings.
  • Turbo Bearings Pvt. Ltd. - manufacturers and exporters of bearings.
  • Clutch Auto Limited - manufacturers and exporters of clutch discs, kits, and components.
  • Involute - manufacturers and exporters of gear boxes, gears, oil pumps, and pulleys.
  • Leeway Mafcom International - manufacturers and exporters of brake linings.
  • Sanal Exports - manufacturers and exporters of engineering goods from India.
  • Sevana Group - manufacturers and exporters of electrical appliances and tools.
  • Priyanka Pvt. Ltd - manufacturers and exporters of tents, camping and relief items.
  • Aarcom International - exporters of fishing equipment and accessories.
  • Silk-n-Silver - manufacturers and exporters of sterling silver tablewares, kitchenware, gift items.
  • Ramtirth Exports - manufacturers and exporters of natural health products.
  • Covertech Equipments Pvt. Ltd - exporters of blades for rotogravure and flexographic printing.
  • Subburaj Group - manufacturers and exporters of cotton yarn.
  • Transworld - manufacturers and exporters of various types of handicraft items.
  • Bimbrah Electronics - manufacturers and exporters of public address systems and more.
  • Meko Auto Pvt. Ltd - manufacturers and exporters of water pump assemblies.
  • Chandra Exports - exporters, global traders, and brokers of commodities.
  • Glisters Internationals - exporters of commodities and products offering marketing and sales services.
  • L. T. Overseas - exporters of rice and other agricultural commodities.