Post on 18-Dec-2021
1. We’re fghting…and winning the diversion battle. Last year, diversion
was down by 13%—to the lowest level since 2004!
2. We’re proactive. New tamper-resistant packaging for brands within the L’OREAL Professional Products Division are making it harder than ever for diverters to hide their sources. We’ve also identifed diversion sources worldwide and implemented controls to counteract their efforts. That puts a stop to diversion before it even starts.
3. We’re tough on the bad guys. We continue to allocate substantial resources to investigate counterfeit incidents and work with the appropriate law enforcement agencies to pursue those parties involved.
4. We’re taking it online. Unauthorized online retailers have created a new “gray market”challenge, so we’ve developed an exciting new initiative with StyleSeat, to offer you a FREE all-inclusive solution to book, engage and sell retail to clients.
5. Your success is our number one priority. From exclusive, high performing professional products to world-class education, we are committed to providing everything you need to be the best. We’ll do whatever it takes to honor that commitment every single day.
Because together, we make it work.
Learn more about diversion in your area and how you can join the fght!
nodivert@us.loreal.com or 800-503-3997
GOOD REASONS TO HAVE CONFIDENCE
IN YOUR L’OREAL PROFESSIONAL PRODUCTS PARTNERS
© A
ved
a C
orp
.
a
ZERO TOLERANCE AND A $500 REWARDDiversion within the beauty industry is still a challenge at almost $337 million* (2013 Nielsen diversion
tracking report for the Beauty Industry Fund). Since 2006, diversion of Aveda products has been on a
steady decline and is now at one-tenth of one percent (0.1%) in unit volume. Thanks to eight years of
concerted effort, Aveda’s share of diverted product is now one of the least diverted brands in the U.S.**
But we aren’t done yet — we are now closing in on a handful of states where the roots of diversion are
going to be extracted.
Aveda does not tolerate diversion. It’s that simple. Diversion is unethical and damaging to our brand
equity. We will not continue to work with those who participate in this destructive activity. We take our
zero-tolerance policy seriously, and grant no exceptions.
We are increasing security to eliminate diversion. Aveda has assembled a specialized and multi-functional
team that taps into a global network as they collect, investigate, and act upon information about diverted
and counterfeit Aveda products. This team is dedicated to eliminating diversion in a variety of ways.
Please, join us to fi ght against diversion. We will reward $500 cash to anyone who supplies us
with verifi able information leading us directly to a salon or store diverting Aveda product — not to
an unauthorized online or retail location. If you have information, please contact our Diversion
Hotline at 877.972.8332 or stopdiversion@aveda.com.
Yours in service,
Dominique Conseil
president
Join our network of salons and spas at 888.283.3227 or aveda.com.
*Diverted hair care volume, Full Year 2013. Source: Regis Q4 2013 Diversion Report.**According to A.C. Nielsen report on Diversion of the Beauty Industry.
FIGHT CLUBSalons and manufacturers are making headway combatting diversion with strategies that amplify the power of professionalism.
CO
VE
R P
HO
TOG
RA
PH
Y: V
EE
R
According to the latest research
conducted by A.C. Nielsen, diverted-
dollar professional haircare volume
across all outlets was down 8.1
percent between quarter one 2013
and quarter one 2014. Additionally,
changes in total diverted-dollar sales
between the fourth quarters of 2012
and 2013 and the first quarters of 2013
and 2014 continue to shrink across
all segments, with conditioners being
the only segment showing a positive
increase from a year ago.
Shampoo (-17.9%) (-16.1%)
Conditioners (-.03%) (.6%)
Hairspray (-16.6%) (-12%)
Styling Aids (-4.7%) (-5.8%)
The quarterly study was commissioned
by the Beauty Industry Fund (BIF),
a professional association of
manufacturers, distributors and salon
owners with a mission to support
and strengthen the professional
beauty industry by eliminating product
diversion. (For more statistics about
diversion, see beautyindustryfund
.com.)
“This is good news in the traditional
brick-and-mortar unauthorized retailers
that the Nielsen Scantrack tool
monitors,” says Aveda Vice President
of Global Package Development Mike
Kennedy. “However, we have seen
a significant shift in diversion activity
to e-commerce and the many online
marketplace sites available today,”
he adds, noting that Aveda has been
able to shift with this trend to keep
its diversion numbers at some of
the lowest levels in the professional
haircare industry.
While BIF’s just-released stats are
a silver lining to the diversion cloud
looming over the industry, many
agree that the even bigger storm of
e-commerce is racking up the most
damage. “The increasing number of
websites, not to mention the ease at
which one can sell products on eBay
or Amazon, is making the hill in front of
us even higher,” says BIF co-founder
Rick Kornbluth, who is also the
president/CEO of the fashion-forward
professional product line
Kevin.Murphy. While he applauds
Beauty Systems Group (BSG) for
creating a scenario—loxabeauty
.com, a new e-commerce site
dedicated to providing consumers
with salon products while suppling
beauty pros with an online sales
commission, so the salon is included
in the revenue stream—Kornbluth says
he also believes the industry has a
responsibility to salons to help them
grow and prosper in
this highly competitive
retail environment.
“One advantage we
have in our channel
of distribution is
the professional
recommendation and
knowledgeable stylists
who can create a
value-added benefit to
their salon customers.”
That said, Kornbluth
offers these reasons
why the industry should be fighting
Internet sales with all its might:
1. Sales on the Internet will almost
always create a commodity purchase—
why would consumers buy from the
salon when they can get the same
product from a discounter? This
forces the salon to competitively
price products to retain its sale to its
customer.
2. Consumers will receive products
that are not right for them, because
they aren’t getting a personal,
professional recommendation. This
can lead consumers to develop a bad
perception of brands, based on a
purchase of the wrong product for their
particular hair type.
3. More importantly, manufacturers
have a responsibility to their
customers—salons—to make them
as profitable as possible. There is little
likelihood that consumers will book
appointments, such as cut, color, spa
or nail services, online. However, salons
have a good chance to book clients if
they’re forced to come into the salon to
purchase professional products.
Clearly, diversion continues to be
a complex issue, and
there’s no magic bullet
to eradicate it, which is
why Professional Beauty
Association (PBA)
Executive Director Steve
Sleeper continues to
advocate manufacturers
and distributors to
utilize contracts that bar
diversion and additional
means to track
products with coding
technologies. “At the
salon level, stylists can actually be the
best educators for consumers, letting
them know professional products sold
at mass retailers are not necessarily
less expensive and may, in fact, be old
product or even counterfeit,” Sleeper
says. Case in point: Consumers,
as evidenced in a past PBA study,
Business of Beauty, trust their stylists
the most when it comes to product
recommendations. “Stylists can help
their bottom line and stop consumers
from buying diverted product by
making a product recommendation and
asking the client to purchase it from a
salon,” Sleeper says.
Fighting diversion remains a full-
time job, and a responsibility that rests
with the manufacturer, distributor and
salon. “There are no easy answers
and no shortcuts—just a commitment
to keeping the salon channel clean,”
Kornbluth says. “Salons should look
carefully at the brands they represent,
and if and when they see diversion
occurring, they need to question the
“There are no easy answers and no shortcuts—just a commitment to keeping the salon channel clean.”—Rick Kornbluth, BIF co-founder
manufacturer and distributor about
their policies and commitment to
fighting this disease. Turning a blind
eye, giving in and letting our products
go means we will likely lose retail in our
salons, which accounts for the majority
of a salon’s profits. We all need to take
ownership of this fight as I believe we
literally are fighting for our livelihood.”
—Kelley Donahue
Matrix $15,954 $14,208 $11,752 $15,148 $17,032 12.4 6.8 20.3 $15,954 $17,032 6.8 20.3
TIGI $13,927 $13,874 $12,515 $12,378 $12,551 1.4 -9.9 15 $13,927 $12,551 -9.9 15
American Crew
$13,025 $13,094 $11,361 $12,686 $12,264 -3.3 -5.8 14.6 $13,025 $12,264 -5.8 14.6
JPMS $11,126 $11,508 $9,411 $9,899 $10,304 4.1 -7.4 12.3 $11,126 $10,304 -7.4 12.3
Sexy Hair Concepts
$8,967 $9,816 $8,331 $8,729 $9,167 5 2.2 10.9 $8,967 $9,167 2.2 10.9
Farouk $7,100 $6,892 $5,365 $5,334 $5,613 5.2 -20.9 6.7 $7,100 $5,613 -20.9 6.7
Redken $6,237 $5,917 $4,720 $4,844 $4,875 .6 -21.8 5.8 $6,237 $4,875 -21.8 5.8
Sebastian $4,636 $4,928 $3,698 $3,864 $3,950 2.2 -14.8 4.7 $4,636 $3,950 -14.8 4.7
Rusk $3,636 $3,413 $2,837 $2,966 $2,946 -.7 -19 3.5 $3,636 $2,946 -19 3.5
L’oréal- Kérastase
$1,168 $1,397 $1,065 $1,166 $1,103 -5.4 -5.6 1.3 $1,168 $1,103 -5.6 1.3
Pureology $1,216 $973 $844 $765 $796 4.1 -34.5 .9 $1,216 $796 -34.5 .9
Bumble & bumble
$1,790 $1,251 $946 $891 $767 -13.9 -57.1 .9 $1,790 $767 -57.1 .9
Nioxin $567 $588 $494 $548 $602 6.1 9.9 .7 $567 $602 6.1 .7
Joico $697 $586 $502 $497 $496 -.2 -28.8 .6 $697 $496 -28.8 .6
Zotos Core Brands
$485 $421 $463 $518 $476 -8.1 -1.8 .6 $485 $476 -1.8 .6
All Others $781 $807 $751 $711 $961 35.1 23.1 1.1 $788 $961 22.1 1.1
TOTAL MFGS
$91,326 $89,704 $75,065 $80,953 $83,913 3.7 -8.1 100 $91,326 $83,913 -8.1 100
DOLLAR SALES VOLUME
Year AgoQtr I2013
Qtr II2013
Qtr III2013
Qtr IV2013
Current PeriodQtr I2014
PriorQtr
YearAgo
Share of Diverted Volume
Past YrAccum
This YrAccum
% Change
vs Prior Yr
Share of Diverted Volume
% CHANGE ACCUMULATED DOLLAR SALES VOLUME
DIVERTED BRAND SUMMARY AS OF MARCH 30, 2014Total United States for All Haircare, Dollar Sales Volume Trend (in thousands of dollars)
Lest anyone doubt, diverters have
a strategic plan. They assume
stylists aren’t going to take
the time to educate guests
about retail options. They also take it
for granted that consumers are likely
to purchase professional products in
grocery or drug stores because beauty
pros have failed to tell them what they
should purchase to maintain their
salon look at home. In fact, if it were
conceivably possible, diverters would go
so far as to take a page from food trucks
and set up large vehicles tricked out with
professional products outside salons
to capitalize on missed opportunities.
These unscrupulous individuals don’t
believe salon companies will educate
their guests; therefore, they see an
enormous opportunity to fill that gap.
Arguably, one could say that salons
create the demand for diversion.
The good news is that beauty
establishments can become an agent
for change by implementing strategic
plans and using time with clients to their
advantage. Depending on a salon’s
culture, the retail conversation can incite
myriad emotions. The guest experience is
enhanced if there’s a correlation between
the services provided and the products
used to create the looks. Simply put,
retail is an extension of the service. That’s
why at the Summit Salon Business
Center, we coach service providers to
consistently educate guests about the
products used and why those products
were specifically chosen for them based
on hair type. Likewise, we tell all service
providers, “Stop selling and start telling!”
When a service provider consistently tells
each guest which products were used
and why, they’ve taken the quality of the
service to the next level. This improved
service performance is honest, authentic
and infused with integrity. In good time
ON THE MONEYThink of retailing as both an extension of the salon service and an invaluable tool that helps curb diversion. Summit Salon Business Center Senior Director of Development Heather Bagby, founder Michael Cole and President Peter Mahoney discuss the details.
and with
practice, it
becomes
second nature
to service
providers, and
they begin
to feel like
something is
amiss if they
forget to explain to guests which products
they used and why.
For those who still aren’t sold on
the merits of salon retailing, consider
this proposition: Failing to strike up a
retail conversation is akin to forgetting to
remove a client’s color foils. I’m willing to
bet that most stylists would never allow
that to happen—it would be a huge
disservice. It’s imperative that owners
and managers talk to their salon teams
about the importance of retail in language
they can embrace. For example, “As an
HEATHER BAGBY
Eye-catching retail products are a centerpiece of Neroli Salon & Spa in Brookfield, WI.
PROTECTINGOUR INDUSTRY
You’re the salon owner—the certifi ed expert who has
formal training, who works on each client’s hair, who
keeps up on product knowledge. Your recommendation
for an at-home regimen using professional products has value.
Unfortunately, this value is undermined when those same
products show up on drugstore and supermarket shelves. Not
only does the salon lose the revenue, but clients draw fl awed
conclusions about products they choose themselves that aren’t
necessarily right for their hair type.
This problem has plagued the industry for decades, and for
decades many have thrown up their hands, resigned to the fact
of life that diversion has become. Not Wella! The continuing
progress Wella brands are making in leading the industry’s fi ght
against diversion is the result of dropping salons and distributors
that violate stringently enforced anti-diversion policies.
REASONS TO BELIEVE
• Wella Professionals is leading the salon professional industry in the fi ght against diversion, an
estimated $63 million drain on the salon professional industry.
• Sebastian is the only major Salon Professional brand with consistent drops in diversion over seven
years, totaling a 81% decrease.
• Both Sebastian and NIOXIN saw 8% drops in diversion versus
previous year.
Step 1: Protect• The non-diversion agreement required by
Wella brands is the strictest in the industry.
• Coding, tracking and digital monitoring have
been effective in preventing product from
getting on the street and on the web.
Step 2: Detect• Wella partners with federal, state and local
governments to uncover diversion.
• A multi-year partnership with Montano &
Associates, International Investigations, an
internationally recognized asset protection
fi rm has been established to engage with
legal, regulatory and detection resources to
stop diversion before its starts.
• A national watch dog force visits mass
market outlets across North America to
locate and report diverted product.
Step 3: Disrupt• More than 1,000 take-down notices have
been issued to websites and to Amazon
and eBay sellers.
• Internet surveillance achieves
approximately an 80 percent success
rate when action is taken.
WHAT WE’RE DOING TO WIN THE FIGHT
©2014 The Wella Corporation
this situation is to say, “No problem, let
me just write down what I used today so
that if you change your mind I will be able
to remember what we used.”
3. Intelligent verbiage: Use your
words to authentically communicate to
your guest. Guests expect us to give
them TIPS—an acronym at Summit
that stands for To Insure Proper Styling
on ways to style their hair. Rather than
selling what a product is, start saying
what it does.
• Guests buy products because of the
benefits. When a guest says, “I wish I
could make it look this good,” this is
your opportunity to engage and ask for
permission to teach. “Would you like me
to teach you a few styling tips?”
• Intelligent verbiage empowers service
providers to feel proud of their offerings.
It also makes you aware of the moments
when it’s time to stop talking. We call
it SANS—an acronym for Smile, Ask,
Nod, Shut up. Smile when you ask the
question, nod gently and then shut up.
Allow the guest to talk.
4. Front desk and scripts: Your front
desk team is a sales force. Be clear
about this department’s purpose and
its important role in growing the sales of
your salon company.
• Your front desk team can help create
an exceptional guest experience. What
if they promoted sales with smart
scripts? “Feel free to shop around,
and I’ll let Michael know that you’ve
arrived.” Rather than directing the guest
to the waiting area, staff could start
planting seeds for shopping. If your
front desk team delivers that message
consistently, your salon guests will
begin to associate your salon company
with shopping.
• Create a consistent process for
checking out guests. The most
successful retailers create simple and
effective processes. Your salon can
2. Service providers and scripts:
Effective coaches teach service providers
what to say and when to say it! Service
providers welcome smart scripts and are
willing to embrace them if the intentions
are authentic.
• Throughout the entire
service, your guests
are in a state of hope.
They’re hoping that what
you’re doing is going
to look great. Listen for
opportunities, such as,
“I wish I could make it
look that good,” “I really
like this! You make it
look so much better
than I do,” and “I’m
never going to be able to
make it look this good.”
Teaching guests what
to do and what to use
to recreate their look at
home influences them to
buy retail products from
us. More importantly,
teaching our guests
to style their hair gives
them an extraordinary
experience, gets them
to rebook future visits and inspires them
to send us referrals. Remember, you
have to educate in order to complete a
sale. Teach the guest what you’re doing
and what products you’re using to style
and finish their hair. Make this step a
show-and-tell, hands-on experience for
the guest by using language like, “After
working the gel into your hair, use a
round brush and begin blow-drying your
hair like this...”
• Coach your service providers to handle
rejection. Gracefully handling objections
prevents that guest from having a
negative experience during the product
offering. You’re teaching your service
providers to make intelligent offerings.
In fact, the offerings are more important
than the outcome. One way to handle
employ the same logic and grow sales
through the front desk. Consider using
these scripts: “May I show you the
products that Peter recommended
today?” or “Do you have any questions
about the products that Peter
recommended today?” If your front
desk team member asked each guest
one of those questions before closing
the sale, it eliminates the opportunity
for guests to forget about the products
they want to purchase.
5. No judgment: Control the urge to
prejudge whether or not the guest will
purchase.
• Use words to promote sales, not
eliminate them. You can inadvertently
discourage guests from purchasing if
you don’t pay attention to your word
choice. Think about the offering, “Would
you like to take some of this home
today, or no?” “Did you want to get
started on some of this today, or do you
want to think about it?” and “Should I
get some for you to take home, or do
you want to use up what you have at
home first?”
• Don’t think with your own wallet. If
you make offerings based on what
you would purchase, you may be
judging what your guests will buy. Since
you work in the industry, it’s hard to
imagine paying full price for professional
products, which is fine because you
don’t have to. But if you aren’t careful,
you will begin to make judgments about
whether or not your guests will buy.
Even worse, you stop educating your
guest because they haven’t purchased
in the past. This is dangerous thinking. If
you stop educating your guest because
you assume they won’t purchase, you
haven’t completed the service. Retail is
an extension of the service. Regardless
of guests’ purchasing history, they
deserve to know what you used and
why you chose it for them.
extension of the service, it makes sense
that we tell every guest which products
we used and why we chose those
products specifically for them.”
Once that message is delivered
consistently, the guest experience is
improved, regardless of
whether they purchase
products. A service
provider can’t control
the purchase, but he
or she certainly can
control the offering.
There’s an enormous
difference between
being consistent and
being pushy. Reliable
information creates a
gracious conversation,
and being gracious is
essential to the guest
experience.
Here, Peter Mahoney
and Michael Cole share
their top tips for growing
salon retail sales while
combating diverters.
1. Environment for
sales: Your salon must
look like it’s in the retail business, so the
retail area must be enticing and focused.
• Control the urge to offer too many
choices. If there are too many options,
your guests may inaccurately deduce
that you don’t have a belief system.
Align your company with a manufacturer
that will support the growth of your
company and invest in education for
your salon team.
• Invest in promotions. Your salon
company should support six eight-
week-long promotions each year. These
promotions are planned to enhance
the shopping experience. Shoppers
are always excited to see what the deal
is and are more likely to purchase in
your environment if they associate the
experience with shopping.
PETER MAHONEY
MICHAEL COLE
The retail area in Randolph’s Salon in Rochester Hills, MI
TONGUE-TIEDUse these talking points about retailing so you’ll never be at a
loss for words.
• FEAR 1: What if my guests
think I’m trying to sell them
something? Even if a guest
expresses concern about the price
of the products, it’s important to
consistently educate them about
what was used and why. Guest to
service provider: “These products
are too expensive. I will buy
what I need at the grocery store.”
Service provider to guest: “Thank
you so much for sharing that
with me. I will always let you
know what I used so you have the
opportunity to recreate the look
at home.”
• FEAR 2: What if my guests
think I’m being pushy? I can’t
just start talking about products
out of the blue when I’ve never
mentioned them before. Guest to
service provider: “Why are you
telling me this? You have never
talked about products before.”
Service provider to guest: “Thank
you so much for noticing! I’ve
really been working on making
sure all my guests have the
opportunity to recreate their
looks at home. If you have any
questions, let me know.”
Heather Bagby, Michael Cole and Peter Mahoney are board members of Summit Salon Business Center, the world’s largest salon seminar, training and consulting company that brings the world of salon business, culture and personal growth together to help salons, spas and cosmetology schools reach tremendous heights. For more information, visit summitsalon.com or call 800/718-5949.
BEST PRACTICESThe industry’s top companies weigh in on how they are fighting the battle against diversion.
JOHN AMICO John Amico Jr., President
It’s sad that in the 21st century, diversion
is still a real and growing challenge in
the beauty industry. At John Amico,
we only sell to licensed professionals,
and every product and program that
we develop is done with them in mind.
While not always the most profitable,
it’s clearly the most ethical approach to
doing business. And, quite simply, it’s
the only way we operate.
Today, more than 50 years after
we started, we proudly celebrate three
generations in the family business. In
those five decades, we have owned
and operated salons, schools and our
haircare products company. Every
growing pain and every success
combines equally to give us a
perspective that stands alone in our
industry.
John Amico members enjoy
unparalleled access to quality
education; represent award-winning,
exclusive products; and enjoy a
personal relationship with their home
office-based educational coordinator.
Plus, annually, members have the
opportunity to earn a free seven-day
Caribbean cruise that includes fun in
the sun as well as virtually unlimited
networking opportunities along with
business, retail and technical education
from some of the industry’s best.
AVEDAMike Kennedy, Vice President of
Global Package Development
Diversion requires daily attention,
as well as diligent and sustained
preventative measures. It is with the
help of committed salon partners,
sales forces and customer service
organizations that diversion of Aveda
products has been on a steady
decline since 2005, when diversion of
Aveda products ranked 11 of 29 top
manufacturers. Now, at one-tenth of
a percent of the unit volume, Aveda is
one of the least diverted brands in the
U.S., according to The Beauty Industry
Fund (BIF) diversion survey conducted
by A.C. Nielsen for 2013.
Aveda’s zero-tolerance diversion
policy is a primary reason for this
success. The policy states that any sale
of Aveda products by the company’s
authorized accounts other than to retail
customers is considered diversion. At
Aveda we are committed to:
• Ending our business relationship with
any salon suspected of or confirmed to
be participating in diversion activity
• Monitoring the shelves of retailers
nationwide for Aveda products
and tracking products found at
unauthorized outlets back to their
source within our network
• Regularly researching business-
to-business networking websites,
online stores, auction sites, and online
classified listings for diverted and
counterfeit Aveda products and their
sources
• Conducting thorough background
checks before accepting new salons
into the Aveda network
• Monitoring order activity for anomalies
• Tracking products throughout our
network using a variety of anti-
diversion technologies and state-of-
the-art coding methods
• Leveraging the eyes and ears of
the entire Aveda tribe by encouraging
anyone with information about
diversion to use the Aveda Diversion
Hotline (877/972-8332) and email
stopdiversion@aveda.com whenever
anyone sees Aveda products outside
authorized outlets or suspects
diversion activity
• Performing physical inventories/
audits of all third-party warehouses
and distributors, both domestically and
internationally
• And adding language to all of
Aveda’s retail agreements (beginning
in 2009) that grants Aveda the legal
right to purchase back product when
our business relationship has ended for
any reason.
L’ORÉAL PROFESSIONAL PRODUCTS DIVISIONPat Parenty, President
Thanks to our ongoing efforts to
investigate known diverters, state-of-
the-art coding on new tamper-resistant
packaging and a higher level of
cooperation internationally among all
our brands and business partners, we
reduced diversion by an astonishing
13 percent in 2013. Across the board
at L’Oréal Professional Products
Division, diversion is at the lowest level
since 2004.
This year, we’re turning
our attention to a new area of
diversion—unauthorized online
sales of our professional brands.
E-commerce is a fact of modern life,
and unfortunately, the professional
products that consumers are buying
online are usually diverted, and
could be counterfeit. It hurts salons’
reputations—and ours—when these
products don’t perform properly, and it
hurts salon retail business when clients
go elsewhere. But thanks to an exciting
new partnership between L’Oréal
Professional Products Division and
StyleSeat, that’s all going to change.
Through this partnership, the
StyleSeat platform—the leading online
and mobile marketplace for beauty
services—will direct consumers to
purchase retail products from the
salon. Salons will have the ability to
profit from online retail orders of all
clients’ favorite L’Oréal professional
products. This platform also directs
new clients to area salons when they
log on to find products. It also features
an online booking option that makes
it possible for clients to schedule
appointments from computers, tablets
or mobile phones in a flash—any time
of the day or night. Salons and stylists
will also be able to use StyleSeat’s
business tools section to help grow
MIKE KENNEDY
JOHN AMICO JR.
PAT PARENTY
ORGANIC SALON SYSTEMSTroy Raszka, Director of Marketing
Organic Salon Systems has long
advocated a strong anti-diversion
policy. The company has not, nor
ever will, sell products to anyone who
is not a licensed salon professional.
We simply refuse to divert products,
because that is not how our company
rewards customer loyalty.
While Organic Salon Systems
is a distributor that sells directly
to licensed salon professionals
via phone, certification classes
and an e-commerce site,
their businesses. This adds up to
exciting new profit opportunities for
salons—more retail business, more
new clients and more services booked.
All of us at the L’Oréal Professional
Products Division are committed to
salon success, and we know that
means doing whatever it takes to fight
diversion. Partnering with StyleSeat to
eradicate online diversion is another
battle in that fight, as well as the start
of a new era in salon profitability.
We’re proud to be part of this
innovation and hope salons will join us!
organicsalonsystems.com, the website
requires a login and password to
view prices and purchase products.
New users must sign up through the
website, and are then contacted by
one of our account managers. They
verify the customer’s licensure, salon
address and other credentials before
allowing them access to shop. These
extra measures are likely a choke point
for some, which result in lost sales,
but we feel that they are a worthy
trade-off to keep consumers from
purchasing professional products at
salon pricing.
Vito Mazza Salon in Woodbridge Township, NJ features a large iPad display near its retail area to attract clients.
TROY RASZKA
Changing Salons for the BetterOrganicSalonSystems.com
1-877-446-4918
Our Pledge Against Diversion
At Organic Salon Systems, we recognize the importance of exclusive, non-diverted, products that develop the businesses & careers of our clients. That’s why you will not fnd any of our product lines on retail store shelves. We simply refuse to divert because we know that it would be at the cost & determinant our loyal salons.
Scan to read our
full position on
diversion and
how it harms the
industry!