Hair Products Industry Status and Development Research

1. Hair products industry status and basic conditions

Hair products are hair products made of human hair or specialized fibrils and processed through a series of processes. They are mainly used in hair styling ,hairdressing, hairdressing, hairdressing, hairdressing, hairdressing, hairdressing, hairdressing,  hair loss and other physical defects to meet specific occupations (such as performing arts, Lawyers and other industries) needs and so on. Among them, the vast majority of products are used for hair styling and makeup, and have fashionable consumption characteristics of quasi-necessities.

There are many ways to classify hair products.  According to their functions, they can be divided into springs, hair sets, hair blocks, accessories, heads, etc.;  they can be divided into human hair products, chemical fiber products, human hair, and chemical fiber yarns. Mixed products, etc.;  divided into female, male, black, and white hair according to the wearer's group; they can be divided into the American, African, European, and Asian hair, etc.; Different combinations can form numerous product lines. The relevant classification is as follows:

At present, the more popular classification methods in the industry are classified according to functions, and are divided into clockwork, hair extensions, hair extensions, hair accessories, and headings.  The hairspring is mainly made of human hair or chemical fiber as the raw material. After processing, the hair products are uniformly arranged in accordance with the specifications. They are worn in the form of natural hair;  the hair extensions are mainly made of human hair or chemical fiber as the raw material. The hair products that are woven or woven on the mesh cap can be directly worn on the head;  the hair pieces are mainly based on the local hair loss situation of the consumers, and the hair is hand-woven on a mesh or simulated scalp The hair products made can be directly worn on the head by the method of connecting the edge with the original hair; the hair accessories made by the hair color can be worn directly, and the hair effect can be achieved together with the original hair; the head is Refers to the use of colored hair artificial needles made of plastic scalp for teaching aids used in beauty salon teaching.

From the viewpoint of the wearers of hair products, the consumer groups of hair products mainly include black consumer groups, white consumer groups, yellow ethnic consumer groups and other consumer groups.  According to their physiological characteristics, black consumer groups mainly use springs and hair sets to reshape hair styles through beauty salons; white consumer groups, mainly residents of developed countries in Europe and America, have a tradition of wearing hair products because of their strong spending power. Under the influence of habits, different hair products are selected according to the change of costumes, and there are a number of hair products with different styles and colors, which can be changed at any time to meet the needs of different occasions.  The consumer groups of yellow ethnicity mainly refer to Asians. With the changes in economic conditions, consumption concepts, and the transfer of the hair products industry chain,  their desire for fashion and aesthetic consumption has become stronger, resulting in a greater consumer demand for hair products; other consumer groups mainly refer to consumers in special industries ( Such as lawyers, actors, etc.), physical defects groups (minor hair loss, hair loss, hair loss) and beauty salon schools.

Judging from the material of hair products, human hair products are mainly made of human hair as a raw material. The quality of such products is good. No matter if it is a touch or color, it is not very different from the original hair. It is worn on the head and is often difficult to distinguish. True and false, belonging to high-end consumer products, the product prices are high, mainly in the face of high-end income groups; chemical fiber hair products are mainly processed from chemical fiber silk as raw materials, products relative to human hair products in the feel and color, etc.  are slightly inferior, but with Real human hair is also relatively close to the main low-end consumer groups; other mixed hair products are mainly based on human hair, chemical fiber silk or other hair mixed in different proportions, its performance between human hair products and chemical fiber hair products Between, the price is also slightly higher than chemical fiber hair products, mainly in the mid-end consumption, biased towards high-end consumer groups.

2. China's additional industry profile and market size

"Extension" refers to any service or technique that increases the amount of hair or the amount of hair that appears to increase from the outside, thereby enhancing the image of the person's appearance. It encompasses and spans developmental hair, hair extensions, and hair styling. Even the four major industries, such as hair transplant surgery, provide “regarding both specimens and specimens” for those who have regrets in their hair.

At present, the number of people experiencing hair loss in China has reached nearly 200 million. Under the dual effects of increasingly serious environmental pollution and mental pressures of modern life, the annual hair loss population has increased by 15 to 18%; consumption trends and purchasing power have increased, and the market to be developed reaches 300 to 40 billion yuan. Yuan Renminbi.  China's issuance industry is currently in the market education stage.  International brands Japanese listed companies Adrans and Artnature have entered the Chinese market. Domestically, they are mainly single-product companies, technologically backward self-employed households, and loosely-managed “jointly locked” franchisees.

3. Issuance of industry development status

At present, the characteristics of China's issuance industry are mainly characterized by the lack of industry policies, large development space, low level of market competition, and continuous extension of the industrial chain.

(1) Lack of relevant industrial policies

As the issuance service industry is still an emerging industry, there are no industry associations specializing in the issuance of additional industries in the country,  and domestic enterprises specializing in additional issuance and replacement are linked to light industry and commerce associations, hair products associations, and beauty salons associations; at the same time, the state leaders issue additional industries. The department is not yet clear. Therefore, relevant policies and regulations for the additional service industries have not yet been introduced. This will, to a certain extent, stimulate the rapid development of the industry, but on the other hand, it is not conducive to the healthy development of the industry.

(2) Larger development space in the industry

There are about 2 billion hair loss people of varying degrees in the world. More than 3 billion U.S. dollars are invested in hair loss medicine research every year.  However, so far there is still no effective hair growth drug. With the continuous advancement of society, the improvement of people’s material living standards has become increasingly demanding for personal images. Hair loss people are looking forward to being able to “get away” early.

According to the data released by the International Hair and Cosmetic Surgery Symposium and the 2010-2013 China Cosmetics Industry Analysis and Investment Feasibility Study,  the hair loss population in China in 2013 was approximately 162.5 million, and the annual hair loss population increased by 18%.  The treatment desire of patients with hair loss is 66%, and the treatment willingness of high-income people is as high as 87%. The willingness to participate in treatment is usually about 5,000 yuan, and the average cost of high-end treatment is 3-5 million yuan.

In 2013, the hair transplant market had sales of 1 billion yuan, sales in the replacement and wig markets were 3 billion yuan, sales in the hair removal products market were 12.6 billion yuan, and sales in the shampoo market were 23 billion yuan. Faced with such a huge market, traditional hair transplants have poor results and high costs. The traditional wigs cannot achieve realistic results, which brings tremendous development space to the professional hair extension service industry.

(3) Low market competition

The issuance industry has not yet been fully developed in the country.  The main reasons lie in the following aspects:  1 People are limited in their understanding of hair growth is a worldwide problem, there is no effective hair growth program, the traditional wig is too fake, hair loss is psychologically Difficult to accept. However, it does not understand the technical breakthroughs of the issuance of additional shares;  2 The issuance industry is still in the market education period in China, and the brand promotion and customer education in the early stage are huge.  3 As an emerging industry, the issuance and replacement business does not exist in the domestic industry reserve talents.  Technical talents need to be cultivated by industry leaders themselves, and it takes time and effort.  4 The issuance of technology needs to be introduced from the United States, Japan, and South Korea, and technical improvements are made according to the conditions of Chinese consumers.  This requires time and practice accumulation; 5 The need for additional product lines Constantly improve and continue to enrich to meet the needs of different customers; 6 traditional marketing methods need to be updated, must use mobile Internet thinking and fan economy to replace the traditional sales channels.

Domestic enterprises currently engaged in issuance and issuance industries are few. There are few companies that can achieve market scale and form brand effects, and competition is generally low.

(4) The industrial chain continues to extend

The issuance service industry encompasses and spans four major industries, including health development, hair replacement, hair styling, and even hair transplantation. It is a highly comprehensive service industry. In terms of horizontal development, the SDF service industry can develop into any of the four industries, continuously expand its business scope, and tap more potential customers and market shares; in terms of vertical development, S&T industries can send upstream products and With the development of production of supplementary products, the current high-end hair products and supplementary production technologies are still in the hands of a few large foreign companies. The prices of related products are relatively high and they are highly profitable.

With the continuous development and maturity of the issuance industry, the industry chain will continue to expand, eventually forming the production and sales of additional technology research and development, hair products and supplementary products, as well as providing additional services. At the same time, it will integrate development and development, replacement wigs, and hair styling. A huge industrial chain such as hair transplant surgery.

4.Industry competition and industry barriers

(1) Industry competition

The development of the issuance industry is not long and the market is relatively fragmented. At the same time, the concentration of the hair products industry and the beauty salon service industry in China is relatively low. There are a large number of small enterprises in the industry. There are many small and medium-sized brands and there are fewer big brands. According to the statistics of the China Beauty Salon Association, the top 20 companies in the beauty salon industry in China had a market share of only 1.03% in 2014.

From the perspective of regional competition, China's beauty service industry enterprises are mainly located in economically developed regions such as East China, South China, and North China, and are concentrated in first and second-tier cities, especially high-consumption cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. The competition in the beauty service industry is fierce, and the demand for high-end beauty services is also relatively strong. There are many well-known brands and companies in the beauty service industry; while a large number of three-and-forty-five cities have large consumer demand for low-end beauty services. There are fewer brand enterprises and less competition in the market, providing living space for many unknown small-scale enterprises.

With the improvement of the living standards of residents in China, the concept of residents' beauty is affected by the trend of foreign beauty salons. At this stage, the concept of consumption of beauty salon services and supplies by Chinese residents has moved toward high levels and high taste. This kind of consumption concept is manifested as the pursuit of The meticulous, in place, and high-quality service, on the other hand, is characterized by the pursuit of individuality, preference for hair style, beauty, skin care, and quality of life. As a result, well-known companies with modern management experience and excellent quality services can rely on themselves. Some market advantages further dominate the development of various segments of the beauty services industry, and expand new segments. For example, Dongtian Modeling, Yongqi, Rebecca and other famous hairdressing and hair products brands have occupied some market shares. , And has a vast space for development.

(2) Industry Barriers

1 Industry Experience and Expertise Barriers

Due to the high level of personalization of terminal consumers and the increased degree of specialization in the issuance of replacement services at the same time, in the process of customer service, it is necessary to fully consider the individual needs of customers. Therefore, the issuance of services not only requires service providers to possess professional skills and core technologies, but also requires a deeper understanding of customer perception and customer needs. Only those service providers with rich industry experience and professional and technical structure can continue to develop in the industry. New entrants lacking long-term accumulation will find it difficult to have relevant capabilities in the short term.

2 Customer Relocation Barriers

In the process of customer service, especially when specific information such as user electronic data is collected to a certain extent, the company can comprehensively and in-depth understand the key information of the customer's hair structure, use experience, purchase habits, personality needs, etc., and the customer to the service provider. Dependency is high. The replacement of additional agencies not only requires more time for product selection, but it is difficult for the average consumer to quickly accept and believe in a new product. Therefore, if the service provider’s products and services are of good quality, the two parties will often form long-term stability. Cooperation relationship. This feature is conducive to the continued development of market entrants' businesses and the formation of high barriers to entry for new market competitors.

3 Brand Barriers

Usually, customers have higher requirements on the safety, comfort and firmness of the replacement products, and brand influence has a greater impact on the purchase decisions of customers.

5.Industry development prospects

(1) The industry continues to mature and the market scale grows

The issuance service industry is currently relatively low in competition, but as people’s material living standards continue to increase, the desire to solve the hair loss problem is increasingly strong, and the issuance enterprises increase their publicity and education on the issuance of additional services. People’s perceptions of additional issuance will gradually change and there will be changes. More and more people are trying and accepting additional services. At the same time, the industry’s own technology and service concept have been continuously improved, which will bring better experience to customers and the market will grow in size. At the same time, more and more companies will enter the issuance industry, the market competition will intensify, related industry associations and industry policies will be gradually introduced, and continue to promote the development of the industry.

(2) Use internet thinking to seize the market

The issuance industry belongs to the service industry, and the user experience is extremely emphasized. Therefore, the additional effect and service concept can be maximized to attract more customers. The issuance industry is at the same time an industry with high consumer frequency and high customer viscosity. In addition to pure additional services, it is necessary to provide more follow-up value-added services to firmly grasp customers. At the same time, abandoning traditional marketing methods, using Internet word-of-mouth marketing, and quickly disseminating and promoting are also magic weapons for industry companies.

(3) Development of additional services for secondary and tertiary cities

At present, the issuance of additional services is basically carried out in first-tier cities. Because the income of first-tier cities is high, the concept is relatively open and it is easier to accept the concept of issuance. However, with the continuous improvement of the development level of the second and third-tier markets, the gap with the first-tier cities has continuously narrowed, and the consumption potential of the additional services has been rapidly released. The additional service companies have gradually deployed second and third-tier cities.

(4) Subdivided industries continue to merge, and large industries are gradually formed

The issuance of additional is a more general concept. The domestic issuance enterprises mostly have a single business, and gradually integrate with related industries such as beauty salons, hair transplants, health development, etc., and eventually develop into a diversified large industry, providing customers with an integrated service experience. At the same time, the future competition is not a single technology. To provide value-added services to customers in a long-term and comprehensive way is the key point of the company's profit and the key point of competition.