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The SAD Facts about Matrix
• The #1 LARGEST Diverted sales by total volume in the Industry...
• Diverted sales grew by almost 6% more than the previous quarter for QTR II 2007...
• Diverted sales grew by 35% more than QTR II 2006r...
• Make up for almost 28% of all annual diverted sales in the industry...
• Does not effectively monitor domestic distributors product sell through using secondary salon coding...
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MatrixAnti-Diversion Efforts Rating: GOOD / FAIR / POOR√ Matrixis the number one (#1) diverted brand by volume. It is 300% larger by volume than the next brand. Matrix used to be a private company owned by Arnie and Sydell Miller, who Co-founded the company in 1980. Last year L'Oreal purchased Matrix and diversion of Matrix 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 Matrix 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 2007 2nd Quarter statistics, Matrix has increased its volume of diverted product sales by more than 35% over the previous 12-month period. The sales volumes of divereted Matrix are the largest in the industry. The speed and rate at which this product line has grown to the #1 diversion spot is disturbing. L'Oreal needs to care about more than just the bottom line to save the image of this brand.
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