wella corporation

Avoiding Diversion

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The Wella Corporation is facing an ugly problem with their hair care products, diversion.

Nick Montano has seen a lot over 30 years as a Certified Fraud Examiner and licensed Private Investigator. But now he’s fighting the new and little understood problem of product diversion. That’s when products made for sale at places such as high end salons wind up diverted to major retail stores, mainly due to customers re-selling to distributors. He says the multi-billion dollar problem is growing rapidly and expanding to organized crime. But while the pockets of these so called businessmen are getting fatter, Montano says much of the blame has to go to a more mainstream target.  read more »

The Price of Beauty

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Organized crime is infiltrating the beauty market and it could affect your look.

Rebecca Okamoto is the Supply Chain Vice President for The Wella Corporation and she says more people are getting into the diversion game. Okamoto says diversion is when their products show up in places it’s not intended. For example, Wella wants their line of hair care exclusively in salons; instead they are winding up on the shelves at major retailers. Okamoto says they have managed to cut the problem down by 70% in the last three years but still face an uphill battle. And it’s a battle that is affecting both the companies appeal and your appearance.  read more »