What: Diversion is when a product
sold by a manufacturer is distributed
(diverted) into markets other than the
one originally intended.
Why you should care: When
products are sold to other markets like
CVS, Walgreens, or other retail outlets,
consumers buy from these stores—not
from you, the professional. Bottom line is
that you want to protect your sales, and
when professional salon products
are diverted…so are your customers.
What you can do: Inform your
clients about diversion. Let them know
that damaged, discontinued, outdated or
tampered with products are often those,
which are diverted into retail outlets.
“Diverters are negatively impacting the
integrity of the professional hair industry
and salon profitability,” says Zohar Paz,
CEO of Moroccanoil North America,
which is tackling diversion head on by
launching an anti-counterfeiting system
and anti-diversion campaign. To empower
stylists and consumers, Moroccanoil
will soon have a comprehensive “We Tip”
program in place for whistleblowers that
will enable anyone to immediately report
diversion via a dedicated hotline, special
website, e-mail or text.
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