The SAD Facts about ARTec
• Top Ten in Diverted sales by last year's growth in the Industry...
• Top Ten in Diverted sales by total volume in the Industry...
• Diverted sales grew by .2% more than last quarter...
• Make up for more than 1.2% of all annual diverted sales in the industry...
• ARTec does not take a public stand against diversion...
• Does not use Export Only labeling on products intended for foreign sales...
• Does not effectively monitor domestic distributors product sell through using secondary salon coding...
See What ARTec Should Do!
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ARTec
Anti-Diversion Efforts Rating: GOOD / FAIR √/ POOR
ARTec Worldwide used to be a private company. Recently, L'Oreal purchased ARTec Worldwide and diversion of ARTec products was greatly increased. This in part is due to the increase in production and the huge global pressence that L'Oreal has.
L'Oreal used to be one of the best in the industry at controlling diversion. The simple explanation for this is that they own their distribution network. Plus they use different bottle types and differnet labeling for their foreign distribution, thereby making it impossible to re-sell those products back into the U.S. market. So the massive volumes of diverted ARTec product are coming from greedy U.S. salon owners who are re-selling to product collectors at a tiny, but steady profit.
According to AC Neilson 2006 1st Quarter statistics, ARTec has increased its volume of diverted product sales by more than .2% over than last quarter...
The sales volumes of divereted ARTec areone of the Top Ten the largest in the industry. L'Oreal needs to care about more than just the bottom line to save the image of this brand.
 
ARTec Worldwide ( L’Oreal USA)
19 Avenue D
Johnson City, New York 13790
800-338-5600
Jean-Paul Agon, CEO
E-mail Mr. Agon directly with evidence of diversion at: jpagon@fr.loreal.com
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