Article On Diversion & Terax Is Diverted Product!

boutiqueshopgirlboutiqueshopgirl Posts: 2Registered Users
I read with interest the latest article on the NaturallyCurly front page about diversion. As a long time professional in the hair care industry I found the article by Naturally Curly to be well-intentioned but completely naive about what really happens in the professional hair world.

What the big name companies like Rusk and Paul Mitchell forget to mention to the public is that diversion is simply a way to pull the wool over the eyes of the public and the professional salons that get upset with companies like Kroger and Drugstore.com who carry professional lines.

The reality of the situation is that Kroger and other large corporate chains like Target ONLY buy products (of any type) in trailer truckloads. This is because their distribution chains require that they sell identical SKUs in all of their stores (except for some slight regionalization). They don't (and couldn't afford to) buy a small handful of shampoo here and there. When they stock one store, they stock them all. With thousands and thousands of bottles.

Therefore when you see Paul Mitchell or Rusk or Matrix at a Kroger or Target it is because the products were purchased directly from the source...which means Paul Mitchell, Rusk and Matrix. Yet those very same professional companies have to put on a good front and conveniently hide behind the old ....we fight diversion BS....to keep their salon customers and consumers happy and totally in the dark of what really happens to those professional products that are sold in grocery chains.

If a Kroger or Target is carrying Matrix or Paul Mitchell, that means that literally hundreds of thousands, if not millions of dollars, changed hands and everyone "in the know" in the hair care industry understands full well that the top guns at the big "professional companies" just look the other way. Then they profess to fight "diversion" when in fact they are happily cashing the big fat million dollar checks from Kroger and Target and etc.,

Bottom line? The very companies that say that they fight diversion are the absolute biggest divertors.

The losers in this big game? The hair care consumers who believe the "scare" tactics that the big companies like to promote that "products are tampered with". Which is also another bold faced lie used by the professional companies to "scare" innocent consumers. It also makes consumers unwilling to buy from Kroger or on the Web where they can actually buy the products less expensively than if they buy them for full mark-up through professional salons that might even sell with extra charges.

Ironically, even though the big companies are happily selling "behind the scenes" to Kroger, they are sabotaging Kroger's sales by promoting this "oh watch out for product tampering" BS. Do you honestly think that a Kroger or Target would risk any potential liability issues by carrying products that they didn't receive an absolute authenticity guarantee on? Well DUH.

Salons are also hurt in this game because the big professional companies pretend that they are against diversion while laughing all the way to the bank with the big checks from the Krogers and the Targets. Again, the big professional companies like Matrix (which is the #1 diverted line in grocery stores today) are the actual diverters.

Meanwhile the Krogers and the Targets & Drugstore.coms are making out like bandits because they are selling the products that their customers want, the consumers are paying higher prices because of scare tactics and salon owners are getting duped to the loyalty of their distributors and the big companies are pulling the biggest and oldest scam in the industry. This whole game has been going on for years and will continue to go on as long as consumers are not educted to the real facts of this diversion game.

So before you believe what the "we fight diversion" companies are saying ....stop and think how those companies could conveniently "ignore" trailertruckloads of Paul Mitchell, Matrix and Rusk products? Money always talks.

Finally, the article says that naturallycurly.com does not divert. Hmmmm. Well Terax is a professional product line and Terax publicizes the fact that they ONLY sell to salons and they do NOT sanction the selling of their products on the Internet. So does that mean that NaturallyCurly that sells Terax in their CurlMart is actually participating in diversion?? Or did they get the product directly from Terax which proves that Terax is in reality a diverter?

Hair consumers should beware. The government is not the only large organization that lies. Corporate America and large hair care companies also lie to their customers about diversion. In a big bad way.

If you find professional hair care products that you like in Kroger or Target or on Drugstore.com and the prices are great, go ahead and buy them and don't worry about "tampered with" products. It just ain't happening the way that the big boys want you to think it does.

Comments

  • GretchenGretchen Administrator Posts: 10,840Administrators, Moderators Administrator
    I can address your concerns about Terax; your other concerns you'll have to take up with the companies, I suppose. I will say, however, that Michelle carefully researched her article and talked to numerous reputable sources. So while you may disagree; we'll stand behind our story. (To my mind, it doesn't make sense to me that John Paul Dejoria would spend millions of dollars in court fighting something he secretly condones. Furthermore, the by-the-truckload reasoning doesn't quite make sense as distributors can as illegally sell by the truckload as by any other method. And counterfeiters can make products by the truckload, as well.)

    A couple of traditionally salon-only manufacturers have agreed (through our direct conversations) to sell to us, for a variety of reasons. Frankly, I think they're a little behind the curve in recognizing the significance of the Internet and sales from the web. We're helping them to see the benefits, one at a time. Why they haven't changed their packaging and marketing info, I can't address.

    Gretchen
    NaturallyCurly.com co-founder
    3A

    You are beautiful!
  • boutiqueshopgirlboutiqueshopgirl Posts: 2Registered Users
    Thank you for your response.

    So what you are saying is that Terax has agreed to sell directly to NaturallyCurly.com? So while they (Terax) officially say that they only sell to salons, they are selling to NaturallyCurly? So isn't that diversion as Michelle outlined in her article? My salon owner friends and I will be definitely bringing this to Terax's corporate headquarters and asking them some hard questions. We appreciate your clarification that you were given permission from Terax to sell their products online.

    As far as your other comments, I stand behind my first post since I have been working in the professional salon industry for years and have seen first hand what really goes on.

    Thanks again for your clarification.
  • MichelleMichelle Administrator Posts: 742Administrators, Moderators Administrator
    Terax is not a salon-only product. It is sold by such retailers as Sephora. It is similar in distribution to such brands as Frederic Fekkai and Phytologie, which are sold legitimately at boutiques as well as hair salons. As Gretchen said, our distributor - a very well-respected Texas distributor - got permission directly from Terax to allow us to sell it. We have never been interested in selling diverted products.

    Michelle
    Michelle
    co-founder
    NaturallyCurly.com
  • SuperCurlSuperCurl Posts: 111Registered Users
    I used to work for a well known hair care product distributor and they had an entire department for diverted product. I was a sales rep and if I saw our products in places that they were not supposed to be, I was instructed to call that department and give them the details. I was also educated by all of the companies I represented, and diversion was something that they always discussed.

    I disagree w/ your assessment that the companies are behind the diverted product. It doesn't make any sense to me that they would spend a lot of money educating the public only to be the purpertrator after all.
    3a/b fine but lots of it!
    HG's:BRHG, AG Re:Coil, LOVING Curls Ecstasy Hair Tea Condish!

    _______________________________________
    My 6 y/o dd drew it!

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