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What is product diversion? According to the cosmetics industry, product diversion occurs when a professional hair care product is diverted via the gray market to
unauthorized retail outlets such as drugstores and grocery stores. It is when product is being sold outside of its authorized chain of distribution. Consider the phrase:
outside of its authorized chain of distribution. The higher end cosmetics manufacturers want the higher profits that come from their products being
exclusively sold through salons. The fact that a similar size bottle of shampoo being sold at Wal-Mart for $1.69 will clean your hair as well as the salon's
"name brand" costing $7.99 doesn't affect their thinking. At the salon you are buying the whole package: professional shampoo, professional hair stylist, and
a professional snow job.
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