Diversion Incursion

We know that diversion can be controlled. Our stringent sales policy is key to fulfilling our commitment to keeping our products non-diverted—something that we’ve successfully done for the past 10 years. (Eufora founders Don and Beth Bewley)

My position has always been ‘no diversion’ for my product lines. Our products have never been diverted in the 18 years that we’ve been in business. (Guita Dovas, founder of Oloff Beauty)

Diversion Incursion

Sad, but true: diversion is coming out of the closet with a vengeance. A case in point: During the recent America’s Beauty Show (ABS) in Chicago, I was taking a quick chill in the pressroom. While kicking back on a comfy couch, I couldn’t help but overhear a conversation that was going on right next to me. A man—who I later learned was a collector (a business person who collects diverted products, usually from multiple sources, and then sells the goods to stores) was talking rather loudly about his challenge with Moroccanoil products, complaining that even though he had a purchase order from a big-box company for 100,000 units of this professional product, the owner, Ofer Tal, had refused to divert his products. (Good for you, Mr. Tal!). He then paused before asking, “Do you have any leads on professional irons?” So much for the mysterious counterfeit products from Mexico, or the sneaky Belgian distributor who’s importing professional goods to the States by the boatload. The deals are going down right here, right now.

“I believe that we’re being blatantly exploited and, in the process, our livelihood is being taken from us,” declares Gina Lucci, owner of the Dante Lucci Salon, whose single location in Rocky River, Ohio, sells $280,000 in retail each year. “Do I feel threatened about this situation? You bet! I’m also insulted that many diverters believe that hairstylists are so stupid that they accept their excuses for pro beauty goods being sold in retail outlets. We’re not mom-and-pop operations anymore; we’re business people.”