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The major purpose of the Beauty Industry Fund is to purchase quarterly ACNielsen data which shows us retail sales of professional hair-care products outside of the professional industry — in other words, diversion sales. We make this information available on our Beauty Industry Fund website as an informational tool for you to view and track diversion data.
How can you use this information? I suggest everyone should be aware of what is happening in their industry. Give the winners your business and shelf space and encourage your stylists to support these brands. Diversion is a cancer that is affecting us all. You can support those lines that are winning the diversion battle.
Diversion can only be stopped by manufacturers taking quicker, more effective action. Manufacturers need to stop forcing distributors to purchase merchandise in greater quantities than the market demands. Distributors cannot sell through these products without going to outlets such as Quality King, which in turn sell to unauthorized retailers. Many manufacturers are doing a much better job in policing distributor sales to “phantom” salons who in turn sell to unauthorized retailers.
These same manufacturers are coding their products so that they are able to easily identify the salons and distributors who are diverting product. It is totally within the manufacturers’ control to greatly reduce diversion. It is in your interest to see for yourself who the good guys and bad guys are.
Visit our website quarterly and make sure you are aware of who is supporting you and the professional industry. Diversion is a betrayal of trust to all the salon owners and hair stylists who have helped build professional brands. Know who your true partners are.
Kindest regards,
Paul Finkelstein
President
Beauty Industry Fund