Capacity building in testing of consumer products

Project facts

Project promoter:
Latvian National Association for Consumer Protection(LV)
Project Number:
LV-ACTIVECITIZENS-0069
Status:
Completed
Final project cost:
€19,966
Programme:

Description

The goal of the project is to establish product testing infrastructure and processes in Latvian National Association for Consumer Protection (PIAA) and to start the actual product testing.

Within the framework of the project PIAA will receive the knowledge and skills necessary for running the product testing operations; create infrastructure necessary for product testing (webpage, personnel) and processes; start testing products and offer test results to consumers; - include the product testing into the organisation''s strategy as a long-term development priority.

In a long-term perspective, PIAA will be able to offer consumers high quality product tests and receive income from selling test results, which would cover not only testing costs, but also provide financing for other activities of PIAA thus reducing PIAA''s reliance on the project financing.

Summary of project results

The project aimed to address several key issues and challenges within the Latvian National Association for Consumer Protection (PIAA):

  1. Lack of Product Testing Infrastructure: Before the project, PIAA did not have the necessary infrastructure (such as a dedicated webpage or specialized personnel) to conduct product testing. Establishing this infrastructure was a priority.

  2. Insufficient Processes for Product Testing: The project sought to develop the operational processes for testing products, which were previously undeveloped or nonexistent.

  3. Limited Knowledge and Skills for Product Testing: PIAA staff needed the expertise to conduct and manage product testing. The project aimed to provide training and build the necessary competencies for running these operations.

  4. Dependence on External Funding: PIAA''s reliance on project-based financing was a long-term challenge. By developing product testing as a sustainable income stream, the project aimed to create financial independence, ensuring that product testing could cover its own costs and fund other PIAA activities.

  5. Consumer Access to Reliable Product Test Results: Consumers in Latvia did not have easy access to independent product testing results. The project aimed to start offering reliable and high-quality product test results to consumers, enhancing consumer protection and informed decision-making.

Overall, the project sought to create a sustainable framework within PIAA for ongoing product testing, improving consumer protection services and reducing reliance on external financing.

The project included several key activities and outputs aimed at developing product testing infrastructure and processes within the Latvian National Association for Consumer Protection (PIAA). Here’s a summary of what the project did:

  1. Acquisition of Knowledge and Skills:
    The project organized consultations with Euroconsumers consultant Dominique Henneton, focusing on developing PIAA''s strategy, mission, values, and vision. Strategic analysis tools such as SWOT and PESTEL were used, followed by the development of a confrontation matrix to analyze results. Multiple consultation sessions were held between November 2021 and March 2022 to refine the strategy and income model. Personnel also received training on managing the new website following a transition from Joomla! to WordPress.

  2. Development of PIAA Strategy:
    PIAA’s mission, values, and vision were formulated through discussions with member organizations and activists. A survey was conducted to gather insights, and internal consultations helped refine the strategic document. The final strategy was approved at the PIAA members'' meeting in March 2022. The strategy was based on a thorough SWOT analysis and strategic consultation, setting long-term goals for the organization.

  3. Creation of PIAA Website:
    The project involved selecting a website developer (SIA "sem.lv") and designing a user-friendly, modern WordPress website to support product testing and selling test results. The website’s functionality was enhanced for better user engagement and SEO optimization, supporting both desktop and mobile platforms. A section dedicated to product tests was developed, intended to be launched in 2024, with paid access via PayPal. Early results indicated a significant increase in user engagement following the launch.

  4. Launching Product Testing:
    The project initiated product testing activities by selecting hand-held showerheads as the first product due to their relevance in reducing energy costs. Market research was conducted to determine prices and the cost of laboratory testing. A testing service provider, SIA “Sertifikācijas un Testēšanas Centrs,” was chosen. The showerheads were purchased, tested, and the results were compiled and published. Marketing campaigns on Facebook and press releases generated public interest, with some users downloading the full test report after completing a survey.

  5. Marketing and Public Engagement:
    The test results were promoted via the website, social media (Facebook), and press releases to media outlets like Delfi and TVNET. A Facebook marketing campaign engaged 785 consumers, with 25 filling out a survey and downloading the test results. This effort demonstrated consumer interest in product testing, setting the foundation for future product test sales.

  6. Future Plans and Revenue Projections:
    While full-scale monetization was not achieved during the project, the groundwork was laid for selling product test results through the website. Based on initial consumer engagement, it was projected that around 2% of website visitors might subscribe to paid content, potentially generating €600-750 per month after steady growth in subscriptions over the first two years.

In summary, the project successfully established the necessary infrastructure, trained personnel, initiated product testing, and explored ways to monetize the results through the website, setting the stage for future financial sustainability.

The project achieved several notable results, benefiting multiple stakeholders, primarily the Latvian National Association for Consumer Protection (PIAA) and Latvian consumers. Here’s a breakdown of the outcomes and impacts:

1. Establishment of Product Testing Capabilities

  • For PIAA: The project successfully created the necessary infrastructure and internal capacity for conducting product testing. PIAA staff were trained in relevant skills, and the organization now has an operational product testing process, from product selection to reporting results.
  • Impact: This allows PIAA to offer an entirely new service to consumers—high-quality product tests—adding credibility to their role in consumer protection and enhancing their long-term strategy.

2. Development of a New Website

  • For Consumers and PIAA: A modern, user-friendly website was launched, designed to host product test results and offer easy access to consumers. The website’s structure and functions, such as the upcoming subscription-based access to test results, aim to meet consumer needs for reliable information.
  • Impact: The website led to increased consumer engagement, with a significant rise in page views after its launch. The long-term benefit will be enhanced consumer access to critical information on product performance, helping them make more informed purchasing decisions.

3. Initial Product Testing and Consumer Engagement

  • For Consumers: The project initiated its first round of product testing with hand-held showerheads, offering test results that helped consumers understand how they could save on energy and water costs.
  • Impact: The marketing campaign and public release of test results generated strong interest, with many consumers accessing the information online and a portion completing a survey to download detailed reports. This initial engagement demonstrates consumer demand for independent product testing.

4. Strategic Planning and Financial Sustainability for PIAA

  • For PIAA: A comprehensive strategy was developed and approved, incorporating product testing as a key pillar of future activities. The project set the foundation for monetizing these activities, projecting potential revenue from selling test results through a subscription model.
  • Impact: By introducing product testing and projecting a gradual increase in subscription sales, PIAA has laid the groundwork for financial sustainability. This reduces their reliance on external funding and supports the growth of independent consumer protection efforts.

5. Strengthened Collaboration and Knowledge Exchange

  • For PIAA and Other Consumer Organizations: PIAA collaborated with consumer organizations from the Czech Republic (dTest) and Slovakia (ZPS), exchanging knowledge and best practices related to product testing and selling results.
  • Impact: This cross-border knowledge exchange improved PIAA''s understanding of how to effectively implement product testing and integrate it into their organizational model. It also helped PIAA identify ways to optimize future test processes and marketing strategies.

6. Consumer Trust and Protection

  • For Latvian Consumers: The project empowered Latvian consumers by providing them access to independent, reliable product information, allowing them to make informed choices. The first product test (showerheads) addressed a relevant consumer need (energy efficiency), potentially helping households save on utility bills.
  • Impact: By offering objective product assessments, the project increased consumer confidence in making purchasing decisions, fostering a more informed and empowered consumer base in Latvia.

Overall Impact:

  • For PIAA: The project significantly enhanced PIAA''s operational capacity and financial outlook by developing new revenue streams. It enabled the organization to transition into a key provider of consumer product information and set the stage for long-term sustainability.
  • For Latvian Consumers: Consumers gained access to valuable product testing services, with potential cost-saving implications and improved consumer protection. As PIAA continues to grow its testing operations, more consumers will benefit from access to comprehensive product performance data.

In conclusion, the project delivered both immediate and long-term benefits to PIAA and Latvian consumers, advancing consumer protection and setting up a sustainable service model that will continue to grow beyond the project’s lifetime.

Information on the projects funded by the EEA and Norway Grants is provided by the Programme and Fund Operators in the Beneficiary States, who are responsible for the completeness and accuracy of this information.