Editor’s Note
This article is part of a series examining Yuhan-Kimberly’s Social Responsibility Management Report. In this installment, the focus is on consumer issues, highlighting the company’s commitment to a consumer-centric approach in a rapidly evolving market.
1. Ensuring Product Safety for Baby and Children’s Products
Yuhan-Kimberly comprehensively disclosed its company policy on the safety of baby and children’s products on January 14, 2015. The related content includes not only strict compliance with regulations but also a list of substances for which safety concerns have been raised socially and a promise to voluntarily restrict their use. This disclosure of the safety policy for baby and children’s products reflects the will to transparently publicize the promise for safer products and to continuously strive to implement it. It is being promoted as part of Yuhan-Kimberly’s key 2015 policy, ‘Consumer-Centered Management’.
The relevant content is being disclosed through the company website (www.yuhan-kimberly.co.kr) and brand websites. The target products are diapers, baby wipes, and baby and children’s skincare.
Following the raw material usage guidelines introduced in 2013, the company voluntarily restricted the use of 59 types of ‘substances of safety concern’ in its products, completing the application first for baby and children’s products, which are of high consumer interest. The formulations of a total of 24 existing cosmetic and wipe items were changed, and newly developed products are being developed in strict compliance with the raw material usage guidelines. This served as an opportunity to secure a high level of safety for baby and children’s products, enabling the creation of safer products that consumers can use with confidence.
While there have been cases where some global companies announced policies to voluntarily not use certain ingredients like parabens, there are not many cases like Yuhan-Kimberly’s comprehensive disclosure of a safety policy covering all baby and children’s products, setting a precedent. Yuhan-Kimberly is striving with this measure to meet customer trust as a leading household goods company and to proactively respond to the strengthening of global regulations, thereby enhancing the export competitiveness of related products.
2. ‘Voluntary Use Restriction’ Measures Under Expert Consultation for Substances of Safety Concern
Yuhan-Kimberly has established an internal Product Safety Regulations Team composed of majors in pharmacy, chemistry, and life sciences, and also operates an external expert advisory panel to proactively reflect not only domestic and international product safety regulations but also social expectations. Substances of social concern include those with regulatory strengthening movements overseas based on domestic and international substance regulation trends, consumer safety issues, and academic data; substances for which concerns have been raised in recent research; and substances with insufficient safety information.
To date, the substances for which the company has self-determined use restrictions total 59 types, including some preservatives like parabens, synthetic fragrance ingredients, allergy-inducing fragrances, impurities, benzophenones, and phthalates. The company plans to continue updating this list in collaboration with the advisory panel.
1. 2% Reduction in Consumer Complaints Compared to Previous Year: Operation of Consumer Complaint Improvement TFT
A TFT (Task Force Team) (Product Development, Marketing, Quality, Production, Shared Growth Management, Customer Satisfaction Workgroup) is operated to reduce consumer complaints. A total of five Consumer Complaint Improvement TFTs for key business products—infant, feminine, household, skincare, and wipes—carried out improvement activities. Furthermore, by setting the minimization of critical defects as a key performance indicator and conducting preventive activities, consumer complaints based on 2014 sales volume decreased by 2% compared to the previous year.
2. Compliance with New Product Pre-Inspection Process
Yuhan-Kimberly pre-inspected potential product risks and possible complaints through the Consumer Complaint Reduction Council. To minimize possible consumer complaints arising from changes in product specifications and materials before new product launches, the company complies with a new product pre-inspection process. In 2014, surveys were conducted with 90 complaining customers before the launch of new products like Magic Pants and Premier, and improvement product usage surveys were conducted with 38 complaining customers to further improve complaints about the Bosong Bosong product. The survey results are utilized as key information for setting new product materials and specifications.
1. Establishment of New Integrated Customer Service System in 2015
Yuhan-Kimberly operates an Integrated Customer Service Center. In 2014, a total of 142,565 customer consultations were conducted. In January 2015, an Integrated Customer Care System was established to begin integrated management of the various channels previously used to communicate with customers. That is, consultation channels that were previously separated by area—customer support, momQ* (the specialized online shopping mall for infant and children’s products), Gift Festival, Senior Informercial*, B2B, etc.—were integrated so that consultation services for all businesses can be received through a single channel.
All customer feedback is analyzed through the Integrated Customer Care System and reflected in product and service improvements. Among these, consumer complaints are handled fairly based on the Consumer Dispute Resolution Standards announced by the Fair Trade Commission.
* momQ: A specialized online shopping mall for infant and children’s products operated by Yuhan-Kimberly (www.momq.co.kr), selling not only Yuhan-Kimberly products but all related products.
* Senior Informercial: Advertising targeting seniors, including promotion and information about senior products (providing product guidance and free trial opportunities).
Customer Satisfaction Survey Score Increased by 2.8 Points Compared to Previous Year
A satisfaction survey was conducted with 300 customers who used the consultation service to improve service quality through customer-centered counseling. An external specialized agency conducted a telephone survey in November 2014, and the results showed that overall customer satisfaction increased by 2.8 points compared to the previous year. The evaluation results indicated that the increase in overall satisfaction with the consultation service was lower than that for key factor satisfaction (ease of access, simplicity of procedure), so activities to strengthen this area are planned for 2015.
2. Customer Satisfaction Activities
– Re-acquisition of Consumer Centered Management (CCM) Certification in 2014 and Support for Partner Company Certification: Yuhan-Kimberly re-acquired Consumer Centered Management certification in 2014, evaluated by the Korea Consumer Agency and overseen by the Fair Trade Commission. Notably, it was selected as an excellent CCM-certified company in 2014 and presented a case study at the certification award ceremony. In 2015, the company plans to operate a mentoring program to share and spread capabilities and additionally support a skincare partner company in obtaining CCM certification. Yuhan-Kimberly first acquired CCM certification in 2008, the first in the industry.
– Operation of Online Platform-Based Consumer Education Programs: To realize the value of ‘customer satisfaction’ by providing useful information, the company operates the online lecture site ‘Uri Nanum TV’. Participation is gradually increasing, centered on parenting forums for expectant and new mothers and elementary, middle, and high school education programs for teenagers.
– Customer Relationship Enhancement Activities and Factory Tour Program Operation: Customer Relationship Management (CRM) activities are conducted for customers who have experienced complaints. In 2014, a total of 4,547 people participated in Customer Relationship Enhancement Activities across 5 products. Additionally, a factory tour program is operated to build trust and strengthen partnerships with consumer groups.
A total of 170 guests, including members of the Korean Women Consumers Union, Incheon Metropolitan City Consumer Information Center, and local consumer groups, were invited to directly verify the quality control and raw material safety management system and were given the opportunity to inquire about any questions directly with product producers.
– Efforts for Product Development Meeting Customer Needs: Yuhan-Kimberly reflects customer opinions during product development and improvement. Products are developed through the stages of ‘product development planning – execution – commercialization’. After establishing product development strategies and before finalizing business plans and final product production, surveys and prototype tests are conducted with consumers. By reflecting these results to improve products, the company produces products that meet customer needs and preemptively blocks possible consumer complaints.
