ZO Skin Health’s Antidiversion Strategy

Whether it’s on Amazon, eBay or a third-party Web site, diversion exists, but let’s face it, the beauty industry doesn’t really want to talk about it. But ZO Skin Health is one of the few exceptions addressing the issue so that its consumer has a good experience on all fronts. One unusual development is that the typical diverter of the Seventies and Eighties has been reincarnated into a new and unexpected persona — a doctor. “We want to have a lot of integrity,” said Jim Headley, chief executive officer of ZO Skin Health, who noted the products are exclusively sold in physician’s offices. “We don’t want to divert goods ourselves and it’s one of our key tenants on how we operate our company.” The company allocates around $400,000 for its antidiversion strategy and according to Headley that will likely continue. “We do daily moderating and we get results of who’s selling the product online,” said Whitney Gibson, ZO Skin Health’s lawyer, who added that they’ve caught physicians, employees of physicians and their family members selling items online. “Then, if we find anybody, we’ll send them a cease and desist letter. The minute they tell us the source of the product, we demand that they

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