Creative Nail Design Systems’ CEO Jim Nordstrom made the company’s anti-diversion stance clear when he addressed distributors at the BBSI winter conference. Diversion occurs when an authorized distributor of a company’s product resells that product to an unauthorized distributor. After reiterating that the company is “100% against diversion,” Nordstrom promised that the company is getting tough with distributors who persist in this practice. “We just eliminated a couple of them,” he says.
“We see diversion as a serious threat,” explains Nordstrom. “One that we’re concentrating on and which we feel we have under control. Our commitment to salons is — and always has been — that, in return for their loyalty, we’ll make sure our products are never sold anywhere but in recognized salons.”
According to Nordstrom, it’s easy for the company to track diversion to its source because the company’s products are sold only through professional channels.