Down With Diversion

July 10, 2011 | 10:20 AM
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 Let them know that damaged, discontinued, outdated or tampered with products are often those, which are diverted into retail outlets.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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