Enhancing brand integrity: Anti-diversion in beauty and haircare with Systech

Nov 2, 2023
By Christine Gallagher

In the beauty and haircare industry, maintaining brand integrity and protecting your products from diversion is crucial for ensuring product quality, customer trust and overall brand success. As a leading provider of brand protection and serialization solutions, Systech offers innovative tools to combat product diversion and counterfeiting in this sector. Below, we’ll explore the significance of anti-diversion strategies and how we can help safeguard your beauty and haircare products.

The pervasive issue of product diversion in beauty and haircare

Product diversion—or unauthorized distribution of products to unintended markets or unauthorized retailers—is a widespread challenge in these industries. It not only compromises the integrity of brands but can also lead to various negative consequences, including:

  • Quality Control Issues: Diverted products may not meet the quality standards and safety regulations set by the brand, potentially endangering the health and satisfaction of consumers.
  • Price Erosion: Diverted products are often sold at lower prices, which can undermine the perceived value of the brand’s products and affect overall pricing strategies.
  • Brand Dilution: The presence of diverted products in unregulated markets can diminish brand exclusivity and premium perception.
  • Consumer Confusion: When consumers unknowingly purchase diverted products, it can lead to confusion and mistrust, affecting brand loyalty.

How Systech can help address diversion

We offer a range of brand protection tools and technologies to combat diversion effectively. Here’s how their solutions can help the beauty and haircare industry:

  • Serialization: Systech’s serialization solutions enable brands to assign unique identifiers to each product. This approach allows for real-time tracking and monitoring, making it challenging for diverted products to go unnoticed.
  • Track and Trace: With Systech’s track and trace capabilities, brands can monitor the movement of their products throughout the supply chain. This monitoring helps identify and address any unauthorized distribution.
  • Digital Authentication: Systech provides a product authentication solution that works with existing barcodes and packaging to deliver immediate counterfeit and diversion detection. Using a simple smartphone app, brands and their trading partners can instantly verify product authenticity—anywhere in the supply chain.
  • Geo-Fencing: Brands can set up geo-fencing to control the distribution of products within specific regions, ensuring that products are only available where they are intended to be.

Key benefits of implementing diversion detection solutions

By incorporating Systech’s anti-diversion solutions into their operations, brands can reap numerous benefits, including:

  • Protecting Brand Integrity: Maintain the quality, authenticity and exclusivity of your products, preserving your brand’s image and reputation.
  • Reducing Revenue Loss: Minimize revenue loss due to diverted products and price erosion.
  • Enhancing Consumer Trust: Provide consumers with the means to verify product authenticity and safety, strengthening their trust in your brand.
  • Streamlined Supply Chain: Improve supply chain efficiency with real-time tracking and visibility, leading to cost savings and improved overall performance.

Systech’s anti-diversion solutions play a vital role in safeguarding your supply chain from the challenges of unauthorized distribution. Implementing these advanced tools not only protects brand integrity but also enhances consumer trust, ensures product quality and streamlines supply chain operations. In an industry where authenticity and quality are paramount, Systech offers a powerful ally in the fight against diversion, allowing beauty and haircare brands to thrive with confidence.


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