Product Diversion
You have probably noticed, in recent years, that certain salon brands of shampoo, conditioner and the like now seem to also reside on store shelves. This practice, known as “Product Diversion” in the industry, has become more and more widespread – though as a salon owner for 25 years (and in the hair industry for even longer) I have seen this go on for a long time. I first saw it in Europe when fragrances and cosmetics what were known as professional brands (in other words, brands that were only supposed to be available in specialized settings) were diverted and shipped back via the communist countries into western Europe, where they were sold at discount stores. Often the products were watered down versions of their originals, sometimes they were even completely different. Unfortunately, when products are diverted there is zero quality control. As we saw in recent years with some children’s toys, they could even be toxic.
At Strands we carry many professional brands and have done so for a long time. We carefully vet these products and only carry those we can stand behind. Unfortunately, as professional brands become recognized and develop a loyal following, mass retailers want a “piece of the action”. So, large retailers like Costco’s, Loblaw’s, Winners, Shoppers Drug Mart, London Drugs and so on assume they are entitled to muscle in on this small territory held exclusively by the professional hair salon industry. The reasoning is simple: Why not? After all, if a customer didn’t bother buying their professional products at their salon, why shouldn’t they be able to pick them up at our store? To them it is merely a matter of convenience.
I happen to be in a singular position insofar as I have my own line(s) hair and skin care product which are manufactured exclusively for me under the Strands label. As such I know a great deal about the labeling required by the Canadian government. I also know the kinds of ingredients that go into these types of products and I know what is banned, what kinds of potencies are optimal and how this information must be presented. Not long ago when I was shopping at one of the drug stores I mentioned earlier, I found to my surprise that three of the professional brand name lines I carry at the salon were on the shelves. Not to mention other professional brands. So I took a closer look.
I found a multitude of problems. Some labels were not in English and French but Spanish and English. Obviously they had not been vetted by or approved by Canadian authorities. Other bottles had had the manufacture’s coding removed. Worse, various products were much cheaper than even wholesale prices. So the question is: where did these products come from? And what was in them?
Obviously, they came from outside Canada. So where was Canada Customs? Well, they do their best but they can’t check every shipment that comes into the country. A few years ago they did stop a shipment with labeling issues but with the sheer volume of goods that crosses the border, they simply cannot keep up.
I know many of the people in charge of the product lines I carry; some are even friends. They work hard to get Product Diversion under control and many are involved in law suits. Some will buy the fake shipments back, they tell me. Unfortunately, many of the smaller, independent product lines have been taken over by large conglomerates with little interest in the line other than as a way to increase sales. This lack of interest in the quality of the products they sell is reminiscent of what we have seen elsewhere, and I see parallels with what we read about GM and Chrysler for instance …. Which makes me wonder if, perhaps, some of these large corporations might themselves be (perhaps indirectly) involved in Product Diversion, however much they profess to hate it. Perhaps merely turning a blind eye? After all, many of these companies sell a lot of different kinds of products to these equally large chain stores, from food to pharmaceuticals.
What these companies – and whoever else is involved in product diversion – appear to forget is that quality professional brands develop a following for a reason. They are of superior quality and they work. Plus, at their salon they learn precisely how to use the product, when and how. With product diversion, none of this is true since, by definition, there is no quality control. So we all lose, not least the company who ends up losing clients who used the brand precisely for its quality.
There are, however, still some independent, privately owned companies, serious about Product Diversion, that I, for one, try to support. Often their products are superior even though their names may not be as well known. (I can also say that, over time, I have seen that the small, independent brands that insist the loudest they will stay true to their client base are almost invariably the ones that are about to sell the brand to some large company that also sells olive oil and washing powder and a thousand other products. Perhaps that is cynical but I have seen it again and again at hair shows and congresses.)
So, I would caution hairdressers and salon owners to not fall for the glitzy corporate messages and slick packaging but to investigate and evaluate the products they carry. Aim for quality. Give clients personalized service and ongoing support when they invest in these brands. Educate your clients about Product Diversion. And consider some lesser known but quality brands, often European (and carried in pharmacies, which are nothing like the North American variety). Remember: clients trust you to advise them as to what’s best for their hair and scalp.
As for the public: Be aware of Product Diversion and remember that if we want quality to endure we need to stand behind it. You wouldn’t buy meat at a car dealership – don’t buy a diverted salon product at a chain store. We all need to stay vigilant.
http://www.youtube.com/watch?v=9cqzl63ceuE
http://www.youtube.com/watch?v=FsWvQBgNFNE
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