Target Selling Prestige Brands, Whether the Companies Like It Or Not {Luxist}

Apr 6th 2008 7:40AM people in the business know cosmetic brands are the least loyal when it comes to business relationships. they constantly jump ship and sell to competitors or their clients with little to no notice. so it comes as no surprise when a department store dumps a huge supply onto the gray market. if the cosmetics brands really wanted to fight this they would institute buy-back programs, which they dont, being the greedy bastards they are, as they wish to keep their profits higher while shouldering all the risk of sales to the retailer. many cosmetics have sell-by dates as well so the longer they sit on the shelves the bigger chance the retailer has of having to dump it at complete loss in the end. so they instead graymarket it before expiration to at least recoup some of the cost. the cosmetics company could do replacement to avoid this, but they rarely do.