DIVERSION

Taking a closer look

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

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orp

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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

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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!

www.tigicopyrightcolour.com

Purplereigns!