UPDATE: Bare Escentuals at Target is Illegal Diversion.

I have gotten a few e-mails since I posted yesterday about spotting Bare Escentuals at Target. One of the e-mails I received was from one of Bare Escentual's PR reps, and Bare Escentuals is saying that this is definitely some sort of illegal diversion.

Illegal diversion is when someone who is legally able to sell a product, like a distributor, unknowingly (or perhaps, knowingly) sells said product to a consolidator or retailer in which they do not have a legal contract to do so. It is like a black market product being right there on the shelves of our favorite retailers, such as Target or supermarkets and drugstores. When you see a professional hair care product on your supermarket shelf, you can pretty much know that it has been illegally diverted.

This is what is happening with Bare Escentuals. They do not know how the product was distributed to Target, but they were alerted to them selling it last Fall. They were also alerted to the fact that Bare Escentuals was being sold discounted at Costco as well. The Bare Escentuals legal team is looking into it.

Supporting the sales of Bare Escentuals at Target is just one way to make this ongoing problem grow.

Comments

[Sandy]

I also so OPI nail polish there for the first time? Some other name brand make-up too. Forgot the brands, will check when I go back later this week, but was sooo shocked to see these brands there.

[Christen]

I saw Bare Escentuals at Target and was pretty surprised. The price wasn't discounted enough to tempt me, but now I know I won't be supporting it. I've also seen a bunch of higher end cosmetics at Costco, like BE, Smashbox, and Lancome. It is cheaper at Costo, but I've never bought it there. It will be interesting to hear if it's another case of illegal diverting.

[sarah]

Whoops - I meant to comment this last week, but shouldn't BE have better control over its own distribution? How hard can it be to track your own supply chain - it's not that large of a company?

[MARTIEJEN]

WAS IN TARGET AND SAW BARE ESSENTUALS I THOUGHT IT WAS A MISTAKE BUT THEY HAD THE SAME
EYE KIT I HAD PURCHASED FROM THE LADY WHO HAS A SALON HERE. THIS IS GREAT FOR US BUT ITS GOING
TO IMPACT THE PEOPLE WHO DO HAVE THEIR OWN BUSINESSES AND CARRY THIS PRODUCT.I WONDER WHAT BARE ESSENTUALS IS GOING TO DO ABOUT THIS SITUATION? HMM

MARTIEJEN

[SJG]

The OPI nail polish has a whole shelf space in Target - I don't think that's diversion, rather OPI making Target a distributor. They wouldn't put a whole shelf into their planogram if they weren't assured of steady product flow.

The BE and other stuff is usually on the endcaps with the clearance merchandise. If it's there, it's pretty safe to say it's illegally diverted.

What I don't understand is why Target and Costco aren't being sued, they certainly have enough $$ to make them a desirable target (no pun).

[Linda]

no no BE is not innocent . BE sold the products to a middleman in las vegas. This guy delivered the product to the biggest grey market trader in NY. FInal destiantion was Target..

[honda]

Ramon desage diverted BE

[DL]

The reason the Retailers dont get sued is because its not illegal. Do you really think they would take that kind of risk?