Tuesday 19 November 2013

Sandal recall move by Woolworths is worth emulating

Woolworths recalled one of its sandals. Product recalls shows a firm's commitment to trading sustainably. Photo credit: gurdian.com


Not so long ago, something very interesting has happened. Woolworths Holdings Limited recalled one of its products in the market. Through an advert on the dailies, the South African retail store with stakes in the Kenyan market, reached out to its customers who could have brought a particular brand of sandals from its stores to return the same, and get their money back.


Woolworths’ move epitomizes the multinational's commitment to trading ethically. 


Product recalls are a common feature in First World economies. Firms that are conscious of their social responsibility do not hesitate to recall products they suspect could compromise on this consciousness.  In January 2013, General Motors recalled over 13000 of its Chevrolet brands to rework on their airbag suspension systems. In 2010, Toyota recalled over 2.3 million cars, including RAV-4s and Lexus HS-250hs, after it discovered that they had faulty acceleration systems. 


But why do firms take all this route?


Organizations use product recalls to endear themselves to their current and potential customers. To redeem favorable brand image, these organizations recall the flawed products and rework them. A bold move, product recalling goes a notch higher than apologizing and reiterates the firm’s commitment to ensuring their responsibility. 


Sometimes, consumer protection organizations enforce products recalls. In worst case scenarios, product recalls in such cases end up in withdrawals. By responding to genuine concerns by customers and stakeholders, firms safeguard themselves from potential liabilities that could result from negligence. 


Importantly, product recalls reaffirm the commitment that organizations have to the needs of their customers. In the Woolworths recall, the retailer purposed to ensure that customers do not suffer injuries and discomfort inflicted on protruding metal parts on the sandals. Genuine customer care. Perhaps this is what organizations running on strategies of yonder do not value. 


What else could explain the dissonance in the complaints and product recall rates in the Kenyan market, for instance?


Cognizant of the need to perform well, indigenous Kenyan organizations should emulate the recent move by Woolworths Holdings Limited. By developing the culture of recalling faulty products, these firms will benefit from customer loyalty and become highly competitive.


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