 |
 |
 |
 |
 |
 |
 |
 |
|
|
|
The SAD Facts about Redkin • 4th LARGEST Diverted sales by total volume in the Industry...
• Diverted sales grew over 9.5% more than the previous '07 quarter...
• 2007 Diverted sales grew by 36.4% more than 2006 for same quarter...
• Make up for more than 10.2% of all annual diverted sales in the industry...
• 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... What L'Oreal & Redken Should Do!
|
RedkenAnti-Diversion Efforts Rating: GOOD / FAIR / POOR √ Redkin increased its sale of diverted products 36.4% in 2007 over the same quarter in the prior year. Redkin had increased its diverted sales consistantly every quarter for the past two years. Redken 5th Avenue NYC is a brand owned by L'Oreal. L'Oreal is usually a leader 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 different labeling for their foreign distribution thereby making it impossible to re-sell into the U.S. market. So the monster volumes of diverted Redken product is coming from greedy salon owners who are reselling to product collectors. According to AC Neilson 2006 1st Quarter statistics, Redken increased its volume of diverted product sales by 109% over the previous 12-month period. Similarily, in QTR II 2007 Redkins sales increased 36.4% over the previous years quarter astronomical increase. It seems that in neither 2006 nor in 2007, has L'Oreal stepped in to demonstrate that they care about more than just the bottom line to save the image of this brand.
|
| Copyright © 2006 SAD Foundation | Home | Members Sign In | About Us | What You Can Do |
 Powered By: BMF Enterprises |