Subjects - Business

It is estimated that returns cost the Consumer Electronics industry more than $10 billion annually, and although returns are unavoidable, it is essential that a means to capture the “tr

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ue” reason for product returns be developed and implemented. Information obtained from the Consumer Electronics Association (CEA) indicates that over 60% of all returns reflect a reason

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

code of “defective.”

This seems quite high in light of the great expense and technology used by manufacturers of electronics in today’s market place. But let us for a moment examine th

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

e current method of gathering return information from the end consumer. In most cases when a product is returned a clerk simply asks the reason for the return, the consumer wanting to f

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

cilitate a smooth return experience simply states the product “doesn’t work” the product is returned, credit is received, and both parties are happy (especially since the true cost of t

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

he return is bore by the manufacturer/distributor).

In other cases, warehouse wholesale stores that rely upon consumer memberships ask few if any questions, concerned that a bad return

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

experience will cause the consumer to cancel his membership. Even certain retailers advertise “no hassle” return policies, suggesting that products can be returned for any reason at an

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

y time. In these cases the return’s clerk either marks the reason for return as “defective” or leaves the return reason completely blank; thus forcing the manufacturer to test the prod

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ct to determine (or in some cases guess) the real reason for the return.

It is interesting to note that the CEA has recognized a new trend in the timing of returns. An analysis compar

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ing return patterns from the year 2000 to 2002 suggests that individuals are holding products longer before returning to the retailer, thus increasing the usage time of the good. Altho

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

gh the bulk of returns (44%) are taken to the retailer within one week of purchase, items held for more than one month before being returned increased from 13% to 21% from 2000 to 2002.

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

The “true” reason for the return may vary from buyer’s remorse to displeasure with the color to even confusion on how to operate the product. In an ideal world the manufacturer’s hel

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

line would be called if the product does not work as expected. But we, as powerful and busy consumers, want a product to work as expected, right out of the box, without the fuss and m

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

uss of calling a technical support line.

The science of gathering accurate returns information is still being developed, and from the aforementioned data it is quite clear that we do n

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

t have a clear picture as to why people return goods, and retailer’s aren’t all that helpful in the gathering of data. It is not necessarily the retailer’s fault; because essential ques

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

tions related to the product return could be perceived by the consumer as a “bad” return experience and could cause the retailer to lose that consumer (and others that may be swayed by

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

he disgruntled consumer). If positive data could be gathered from the return of the product it could be used to enhance the consumer’s product experience or to reduce returns.

It is a

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

difficult issue with no clear answers, consumer’s want power and choice, manufacturers do not want returns, and retailers are caught in the middle. Some manufacturers have attempted to

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

evelop returns programs to reduce or eliminate product returns but these have had marginal success mostly dependent of the rate of return. The ability to gather information related to p

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

roduct returns can lead to a strong competitive advantage and a better consumer experience but in order for this to occur we need to take the first steps in gathering the essential data

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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