Hair salons in China

Hair dressing industry, and hair salons in China, are normally seen as part of the cosmetics industry. The cosmetics industry is growing at a rate of 23.8% since 2008. The number of people engaging in this industry is the largest among all tertiary sectors in China.

Around 24% of the whole cosmetic industry is focusing on hair dressing service. The hairdressing industry has a rather low entry barrier, meaning the professional level varies greatly from one salon to another. Every hair dressers use and even sell hair care products to the customers, making this product around 20% of the whole market share of cosmetics products.

Consumer habits for hair salons in China

The average amount of money spent on cosmetics per person sharply increased from 5 RMB to 25 RMB from 1990s to 2000, and it has possibly tripled the number these recent years. However, compared to the developed countries which spent more than 80 USD per person, the huge difference also indicates a long way to catch up and huge potential in this industry of hair salons in China. What’s more, the middle class in China, who is often targeted as the potential consumers of luxurious hair dressing service and products, has increased at a compound annual growth rate of 24% according to consulting companies.

Luxurious Hair salons in China

The luxurious salons at the moment are rather new to normal Chinese consumers. However, its increasing rate generally exceeds the normal salons. Several indicators such as the number of exhibition of high-end salons and high-end hair-care products and number of luxurious salons opened in tier-1 cities show this trend. However, the anti-corruption policy by the new Chinese administration affects slightly this industry.

Saturation of the market

However, it is true that normal hair salons in China will be statured in the near future. The growth rate of hair care products is the lowest among all cosmetics sub-sectors (hair care products, skin care products, make-up and colour cosmetics, perfume and fragrances, etc). The action against illegal salons (including prostitution, ect, especially the case in Dongguan this year) has hugely affected the low-end hair salon industry.

Consulting China, Matthieu David