Recently I heard some complaints about Chinese customers being too sensitive. The evidence is from a survey conducted by an international website on people¡¯s attitudes towards the Nestle milk powder scandal. According to the survey, before the scandal, over 80 per cent of Chinese consumers trusted Nestle products while after it, the rate dropped sharply to 13 per cent.

That leads to the question ¡ª how can the world¡¯s number one food and drink giant lose prestige nationwide within such a short period of time and receive such a dramatic plunge in its reputation?

The excessive amount of the element iodine in the milk powder, rather than a sudden change of taste or a whim on the consumers¡¯ part, is responsible here. However, the problem developed into a real crisis only after Nestle failed to take prompt action to recall all of its products upon the first disclosure of the scandal. The crisis escalated as the media further reported on the excessive iodine content found by food safety authorities in its other lines of products within a month. And this time it was the Chinese Government that called on the food maker to pull such milk powder products from the shelves.

From the perspective of the fast moving commodities industry, Nestle¡¯s experience might serve as a good case study on crisis management and how the Chinese market has put unprecedented emphasis on food safety. In recent years, a series of food safety problems, including a number of deaths related to unsafe or fake food, has aroused consumers¡¯ concern about food hygiene and safety.

Thus, although a company may have established its reputation through decades of advertising and wide public acclaim, such reputation is no longer as impregnable as it was several years ago. Once a crisis is not properly handled, the reputation might collapse in a second.

It might not be good news for certain companies, but it surely is a boon for consumers. The booming economy of China has resulted in a stronger demand for high quality processed products on the consumers¡¯ side. Anyone who underestimate consumers¡¯ concern must pay a rather high price. Recent publicity over the quality problems of KFC and SK-II products further proved that consumer perception of the brands can be greatly affected by negative reports.

It is certainly not reverse discrimination of international companies by local customers. Traditionally, imported products and those branded products produced by foreign giants tend to have a reputation for higher quality and better safety. And some weaknesses that once existed in local suppliers opened up opportunities for these foreign giants to pierce the market with their brands. Thus, it is logical that they would be under close scrutiny of consumers who hold higher standards for them. It is not the Chinese consumers who should have to punish big-name companies for faulty products, but the companies themselves should take the blame for having neglected the standards in the Chinese market.

Nestle has stated in a press release that they will implement improvements in order to meet every aspect of China¡¯s requirements. Now it¡¯s the consumers¡¯ turn to give their response, and the attitude toward the produces should be defined more as sensible, not sensitive.