Dermalogica® Uproots Diversion to Keep Brand Integrity

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Web Editor | July 10, 2011 | 7:27 PM

Calling upon the expertise of professional skin therapists has always been at the core of Dermalogica’s success. In a contracting global economy, the relationship between these professionals and the world’s most-requested skin care brand has never been more crucial, demonstrated by Dermalogica’s newly fortified attack on product diversion.

The goal is to keep Dermalogica® product within the control of licensed therapists who prescribe the brand inside and outside the treatment room as part of a comprehensive professional approach to skin health. These are the only conditions under which the products can deliver maximum results. Otherwise, when purchased and used in a haphazard way, results are compromised, along with the brand promise and brand integrity.

In 2008, Dermalogica® aggressively investigated suspected diverters, and relinquished more than $1 million in business by closing accounts proven to be diverting. The company has stepped up its anti-diversion efforts in the form of significant investments in enhanced, state-of-the-art tracking capabilities, as well as more consistent packaging which allows diverted product to be spotted more easily.

When initiating a relationship with Dermalogica®, every skin care center, spa and salon signs a non-diversion agreement. This practice is carried out in 50 countries worldwide, wherever Dermalogica® product is sold. Dermalogica® practices a “zero tolerance” approach, meaning that an account will be closed if it is discovered to divert even a single product, regardless of how lucrative the relationship may be.

“Each region of the world has unique challenges in fighting diversion,” says Jerry Wenker, President and Chief Operating Officer of Dermalogica®. “We’re pursuing an integrated response to ensure optimal effectiveness in stemming this destructive business practice.”

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