If you go to your local drugstore. You will see aisles of professional shampoo's, conditioners and styling products.
Sam's Club, CVS, Publix, Rite Aid,Target, Costco, Ross, TJ Maxx, and so many more stores are selling professional products that we professionals and only professionals should be selling!
Diversion hurts us all! It steals money from us, and takes away our livelihood. Why then, am I seeing so many diverted products being sold in so many salons across the United States?
After working for Logics since 1986, which was bought by Matrix and then L'Oreal bought Matrix, I decided to leave a company that I found to be corrupt. Matrix was causing their own diversion, with L'Oreal's blessing!
I have, the court transcripts from Matrix, showing that they did cause diversion and they were sued because of it.
So, I want to ask all the professional Cosmetologists on this site, why are you still selling these products?
Your clients can get it cheaper Target or Wal-Mart or Publix or Sam's Club or at TJ Maxx, so why should they buy it from you?
And it's not just Matrix and Logic's and L'Oreal, it's Paul Mitchell, its Aveda, it's Rusk, it's Aquage, it's Sebastian, TiGi and many more.
Check this chart out to see who the BIG DIVERTERS are!
And if you are selling ANY of these companies, you might want to retihink that decision!
Courtesy of BIF
Dollar Sales Volume Trend (in thousands of dollars)
| Dollar Sales Volume | % Change |
| Accumulated Dollar Sales Volume |
| Year Ago
Qtr I 2007 | Qtr II 2007 | Qtr III 2007 | Qtr IV 2007 | Current Period
Qtr I 2008 | Prior Quarter | Year Ago | Share of Diverted Volume | Past Year Accumulated | This Year Accumulated | % Change Vs. Prior Year | Share of Diverted Volume |
| MATRIX |
$27,434 |
$30,407 |
$32,276 |
$31,968 |
$32,978 |
3.2 |
20.2 |
27.9 |
$27,434 |
$32,978 |
20.2 |
27.9 |
| TIGI |
$12,017 |
$12,264 |
$14,226 |
$13,370 |
$13,412 |
0.3 |
11.6 |
11.3 |
$12,017 |
$13,412 |
11.6 |
11.3 |
| REDKEN |
$10,100 |
$11,183 |
$12,247 |
$11,965 |
$12,287 |
2.7 |
21.7 |
10.4 |
$10,100 |
$12,287 |
21.7 |
10.4 |
| SEBASTIAN |
$13,413 |
$12,973 |
$12,643 |
$12,379 |
$11,702 |
-5.5 |
-12.8 |
9.9 |
$13,413 |
$11,702 |
-12.8 |
9.9 |
| AMERICAN CREW |
$9,777 |
$10,426 |
$11,208 |
$11,507 |
$11,408 |
-0.9 |
16.7 |
9.6 |
$9,777 |
$11,408 |
16.7 |
9.6 |
| JPMS |
$9,410 |
$8,572 |
$8,359 |
$8,193 |
$8,726 |
6.5 |
-7.3 |
7.4 |
$9,410 |
$8,726 |
-7.3 |
7.4 |
| SEXY HAIR CONCEPTS |
$5,319 |
$5,548 |
$6,152 |
$6,633 |
$7,032 |
6.0 |
32.2 |
5.9 |
$5,319 |
$7,032 |
32.2 |
5.9 |
| FAROUK |
$6,978 |
$6,172 |
$6,639 |
$6,887 |
$6,840 |
-0.7 |
-2.0 |
5.8 |
$6,978 |
$6,840 |
-2.0 |
5.8 |
| PUREOLOGY |
$1,423 |
$1,940 |
$3,016 |
$3,607 |
$4,126 |
14.4 |
189.9 |
3.5 |
$1,423 |
$4,126 |
189.9 |
3.5 |
| RUSK |
$3,899 |
$3,867 |
$3,819 |
$3,748 |
$3,909 |
4.3 |
0.3 |
3.3 |
$3,899 |
$3,909 |
0.3 |
3.3 |
| All Others |
$5,209 |
$4,717 |
$5,298 |
$5,529 |
$5,857 |
5.9 |
12.4 |
5.0 |
$5,221 |
$5,857 |
12.2 |
5.0 |
| TOTAL MFGS |
$104,812 |
$108,082 |
$115,980 |
$115,793 |
$118,283 |
2.2 |
12.9 |
100.0 |
$104,812 |
$118,283 |
12.9 |
100.0 |
How to Help
A Fight Worth Fighting
The diversion of professional hair-care products into mass retail severely hurts the salon industry. To win this battle, we need everyone's support and commitment. Contribute by becoming a member of the Beauty Industry Fund to help finance and publish the ACNielsen data, which outlines diverted products by volume, brand and manufacturer in mass retailers. Here are some simple things you can do to help eliminate the problem:
Manufacturers:
- Code and track products to identify possible diverters.
- Insist that all distributors and salons sign anti-diversion contracts.
- Terminate distributors and salons found responsible for diversion.
- Audit shipments of products from distributors to salons.
- Have a buy-back program in place with distributors to prevent "dumping" by terminated distributors.
Distributors:
- Insist all salons and DSCs sign anti-diversion contracts.
- Code, track and audit suspicious salons to identify trouble spots.
- Terminate relationships with those responsible for diversion.
Salon Owners:
- Support the sale of professional hair-care products in your salon. Your clients need these products to effectively replicate and maintain current styles.
- Inform your clients on the issue and discuss the benefits of purchasing products within the salon. Also be prepared to answer common questions they may have about diversion.
- Never personally get involved with diversion. Any short-term gain has devastating long-term effects.
- Report anyone or any business you know that is involved in diversion to the manufacturers of those products or email
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- Vote with your wallets. Support non- or minimally diverted product lines. Reduce purchases of highly diverted lines.
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