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Taking Back the Black Hair Care Industry

Sunday Apr 1, 2007 – by

Taking Back the Black Hair Care Industry It is no secret our hair is a matter of priority to a large number of black women. Many of us have at some point in our lives, if not currently, spent endless hours in the hair salon in hopes that our stylists render an interpretation remotely close to our request, spent far too many dollars purchasing just the right products to ensure tamed tresses or “bought you some hair from the Koreans.” Whether braided, twisted, locked, wigs, weaves or extensions, our “look” can be reinvented with a trip to the salon or beauty supply store.

It’s debated whether morphing into a long, straight haired goddess, for what may appear to be a small fee, is a matter of convenience, economics, professionalism, an expression of femininity or pure self loathing for black women. We live in a society where we are judged by the perception of our appearance and our appearance is a defining statement about who we are or how we wish to be perceived. How we choose to show up as our most beautiful selves is a matter of personal choice. However, the root of these choices, is worthy of introspection. Let’s take a look at the big picture, remembering the major roll our choices play in getting the Black hair care industry back.

In 2004, sales of black hair care products exceeded $1.7 billion, as reported by Mintel International Group, a consumer research company. This figure does not include the synthetic and human hair additions that have gained tremendous popularity in recent years. These products are typically not available at local drugstore, rather beauty supply stores owned by Korean immigrants in most cases.

Our demand for “hair repair” in whatever form, is what fuels the coals of this machine called the Black hair care industry. Korean immigrants “get it” and have gotten it for decades, and now have almost complete control of the industry in 2007. They are sizing us up, assessing our needs, crafting and passing out the products. We, in turn, loyally tithe our dollars to strengthen their communities. It is time to consider the roll we play in the crisis within the Black hair care industry, by examining the choices we are making as it relates to us individually, the Black hair care industry specifically, as well as strengthening our communities and preserving our culture in general.

In business, Korean immigrants understand the concept of location, location, location with beauty supply stores popping up everywhere from Smallsville, USA to major metropolitan cities and everywhere in between, but assuredly found in an urban community. They ensure convenience to the stores, stock them with high demand Black hair care products and sell them at a price point with which non–Korean owned beauty supply stores can’t compete.

One aspect of business Korean–American store owners appear to place little value on is customer service. You may or may not be greeted when you enter their stores, but you will certainly be watched if not followed. Shame on us for perpetuating the growth of the monopoly as they collect billions of our dollars and give nothing back to their indigenous customer’s communities-–not even a pleasant shopping experience.

Koreans dominate the industry with control of more than 80 percent of the distribution of Black hair care products, beauty supply stores and the wig and extension manufacturers.

A documentary entitled Black Hair by Aron Ranen takes a sincere look inside the industry and reveals many of the business tactics that are creating challenges for non-Korean beauty supply store owners to be competitive. The documentary has been screened at national hair shows, industry conferences and can now be viewed at YouTube.com

Ranen’s Black Hair suggests, Koreans have maintained their presence by relying on their language to exclude non-Korean customers. Informational magazines such as QTC and the Beauty Times, which is the number one industry magazine and product order sheets is written partially or totally in Korean. Non-Korean American beauty supply store owners report that distributors answer their phones in Korean and have gone as far as to inquire of their nationality prior to placing orders for hair care products. Some store owners have reported Korean-American distributors selling goods to them at higher prices-–if selling to them at all.

On responses to the documentary, Ranen was quoted saying “White people think the film is unbalanced and unfair. There is an overall fear of exacerbating Korean/Black tensions.”

Ranen’s documentary and countless other sources contend that it is difficult to get a response to allegations from Korean -Americans in the industry, responses vary from complete silence to claiming to have no knowledge. Various accounts suggest there is a code of silence amongst Koreans in the industry, as they remain implicitly unwilling to allow their dominant position to be challenged.

While Korean-Americans have displayed remarkable acumen in business matters, the foundation for such a monopoly was not built by Korean immigrants with astounding work ethics alone. Chosu Libo, a respected South Korean newspaper reports assistance from the U.S. and Korean governments some 40 years ago.

The International Migration Review reports, development of Asian immigrants’ import-export business has been closely related to the increasing economic linkages between Asian countries and the United States. Such linkages are a product of the global economic restructuring where some developing countries of Asia have become major exporters of low cost/low price consumer goods to the United States. The Korean immigrants’ wig business in Los Angeles was studied as a case of contemporary import-export trade among Asian immigrants, with major findings summarized as follows:

The increased reliance of the United States on imported goods by the 1970s led to rapid growth of the export-oriented industry in South Korea. Wigs became the major export item of South Korea due to its cheap labor force and government-aid loans to the wig industry. Consequently, a strong vertical integration developed between Korean wig manufacturers in South Korea and Korean importers, wholesalers, and retailers in the United States–that integration provided Korean immigrants with initial business opportunities in the U.S. economy, particularly in low-income minority areas.

In the early 1900s, Black-Americans controlled the industry with the likes of Madam C.J. Walker, a manufacture and distributor of Black hair care products, and Anthony Overton, a manufacturer of Black beauty aids as well as a magazine publisher and president of a Black-owned bank.

The Journal of Social History reports, that during the years between the Great Migration and the Great Depression, the Black beauty aides industry emerged as a black institution. Black industry professionals developed business strategies to overcome the barriers to economic participation they were being met with during those times.

The period between the Great Depression and the civil rights movement was vital, as the industry proved its resilience to economic and social turmoil growing out of racial discord. This was critical since Black manufacturers in the Black hair care industry managed to emerge from the Great Depression while other institutions disappeared. The industries staying power did not go unnoticed. Manufacturers of Black hair care products became the focus of public discourse during the civil rights movement.

The years from the civil rights movement to the early 1990s proved to be pivotal for the industry. Black manufacturers began to lose ground to large white conglomerates prior to the Korean take over, and economic barriers were reproduced for Black professionals in the industry.

Some black-owned companies such as Soft Sheen emerged to manufacture and/or distribute Black hair care products. Independently black owned companies, such as Dudley Products Inc, Luster Products Inc and Bronner Brothers have been able to withstand the changes in the industry because they either sale directly to beauty salons or have long established relationships with distributors.

In 2004 BOBSA-–the Black Owned Beauty Supply Association was created in an effort to take back the Black hair care industry and bring awareness to the Korean-American’s hold on the black hair care industry. The association represents Black owned beauty supply stores, distributors, manufacturers and beauty supply store owners. One of the association’s visions is to provide distribution of Black hair care products via the Internet and distribution centers.

The Boston Globe reports, Sam Ennon, the organizations director estimates it will cost $5 million to $6 million to stock one distribution warehouse and intends to use the Koreans’ example as a template for establishment. Ennon believes key components for the organizations growth to be “communication with one another, sharing of information, co-op buying together and working together as a unit and a community.”

Though BOBSA has faced criticism for not having a clear stated action plan, the website is chocked-full of information for industry professionals. Some industry professionals have called for a boycott to stop the dollars, strong media campaigns to bring this phenomenon to everyone’s attention and opening of more black –owned beauty supply stores. No doubt, with proper support BOBSA could be a powerful force in the industry.

Ladies, as we contemplate our next “look,” we want to remember the bigger picture, the history of the industry, the power of our dollar and the willingness to make conscious spending choices as part of a collective effort to affect change in the Black hair care industry that was once ours.

For more information please visit blackhairdvd.com and bobsa.org

71 Comments – Add Yours

  1. avatar Axel Poessy says:

    Great informative article! Knowledge is power. Due to the information you have so clearly outlined, Derjers International is extremely proud to be America’s first African American & Latin owned hair care manufacturer. With the assistance of our angelical covering, we are determined to break such barriers in this industry. We are here to make a difference. Recently our firm acquired the formula that had been selling in hair care clinics for 40 years and with new ethnic owners, we are taking a fresh new and educational approach to inform the general public about many hair issues that have been largely overlooked by hair companies. Derjers is making a difference by bringing to market clinically proven products at a fraction of the cost of a hair clinic visit to make them more accessible to people suffering from thinning hair, damaged strands and scalp conditions unnecessarily. We applaud diversity and innovation and most importantly,we encourage people to look within themselves to find the treasure inside each of us – the true identity that truly make us shine, regardless of race.

  2. avatar Ms W says:

    If anybody has info on Black owned Beauty Supply stores in the Philly and Chicago area please let me know!

  3. avatar fred cooke says:

    The only thing I hear about in black forms and websites is how the Asians robbed or took control of the black hair industry. They did not take control they can not make a beautician buy their products. The only reason a black beautician would buy an Asian, Caucasian or Mexican product is it’s of the same quality and cheaper. Remember business is about making as much money as possible in the shortest amount of time. The consumer/ customer are interested in purchasing a product or a service at the lowest and best price. When you put these elements together a black beautician is forced to buy products at the lowest price possible to stay in competition with the operator next to her. If one beautician is charging $135.00 for the same hair style that the chair next to them is charging $95 for, who do you think that customer is going to next week. Business only has one color green and green business means you earn the most money by what ever means possible. The price of labor in the U.S. is to high, 10 to 15 dollars per hour for a black hair products manufactures to produce their product and stay in competition with the Asians. The Asians are paying a labor rate of 3 to 5 dollar per hour, at that labor rate U.S. Black, White, Green or Gray businesses can not compete with Asian hair products. If the black manufactures want to be competitive they will have to go to a 3rd world country to have their products manufactured. If Ford, GM, General Electric, Microsoft and hundreds of others moved their base manufacturing to a 3rd world country I say this to black hair manufactures it’s time to get out of Dodge and go to a another production strategy. I promise you the Koreans are more than likely having a lot of their products manufactured in China and Black manufactures can do the same thing. I have a friend that goes to China and buys laptop computers 10,000 at a time he brings them in and sells $1200 brand new units for $425 and he’s black and he sells them from a home based business. Big businesses is not black, white or yellow its green and the color green sees no other color. If a black beautician can buy Asian products at a lower price and by doing so earn $40,000 more a year and that’s the difference between riding in a Benz to work rather than the bus. If that’s the case I’m getting in the Benz. If over a span of five years I could earn an extra $40.000 a year and you multiply that times 5 years it adds up to $200,000. That’s the difference between living in a 4 room hut and a 4 bedroom house. Do you see the picture?
    Back to the statement that “Asians took control of the black hair products business” that’s just an excuses from black manufactures and suppliers because they don’t know how or can’t produce their products at the same price as the Asians. Here is who really took control of the industry. The independent black beauticians took advantage of the Asians low price products so they could ride in a Benz and live in a 4 bedroom house. Here’s my message to Black Business Owners. Re-think, re-strategize and re-plan your business concept and quite crying about the Asians. (By the way I’m a black business opportunist with green blood, deep green)

    • avatar tiny says:

      Fred Cooke…would like to speak with you.

    • avatar darkchild says:

      thank you for your message. It sounded like you were yelling a bit but yet your message is invaluable. We have to be reminded of ways to do business. I want to help the situation yet I do not know where to begin. I know it really is all about the bottom line. I am willing to pay extra else where because my black community means more to me than getting the product for cheap price. yet I want to also go where the black person goes to india him/herself and buy direct cut out the middle man, the korean. they are even professional when taking your money. almost like they know we have nowhere else to go. rather rude at times actually. always follow you around. but my post was to say thank you for the insight on how business really works.

    • avatar Tina says:

      You have made some valid points. But I don’t know if I would say people are “whining” that Asians took over, it’s a known fact. And we for a large part are to blame for alowing it with our poor business decisions, lack of support from our own. One of the key reasons why they were able to take over is because they support their own, so therefore they’re able to multiply…If you read the profiles and listen to the interviews and read the books you’ll see that those successful businesses and business owners support their community, they share, they make deals and they don’t operate as “an all about me attitude” Unfortunately somewhere along the line african americans developed the it’s all about “me” attitude and jealousy and we lost the unity when it comes to black businesses. Not to say that we shouldn’t support other businesses we definately should but the percentage of support for the black businesses is awfully low in comparison to others..

    • avatar TRUTH says:

      Green Blood huh, I guess that’s the same type of blood the African’s had that sold us into slavery.

  4. [...] industry for many decades. They have survived many changes that have occurred. In addition to the Korean debacle, now comes the emergence of the Dominican entrance into the realm of black hair care. I do agree [...]

  5. avatar Allyson says:

    I am trying to get my hair product in beauty supply stores is there a list of black distributors or beauty supply stores. Can anyone help?

  6. avatar darkchild says:

    Just a consumer who is frustrated with having to go only to koreans to get my nails done or buy my hair products. I live in atlanta. Please help. What can I do to buy from black owned distributors and manufacturers when they seem not to even exist in certain. What can I do to be a part of the solution. I am deeply saddened by this at a time when our community is suffering so much, our dollars will never be recycled back into the community if this keeps up. They aren’t even curteous when you go in their stores. and they always, always follow you around as if you are stealing. yet we are forced to buy from them or look pitiful.

  7. avatar Mehna says:

    “On responses to the documentary, Ranen was quoted saying ‘White people think the film is unbalanced and unfair. There is an overall fear of exacerbating Korean/Black tensions.’”

    It’s not even the Korean people who think the film is unbalanced and unfair. It’s the White people. Maybe the film wasn’t objective just as this article isn’t objective.

    And we do have to worry about exacerbating Korean/Black tension. It doesn’t help either groups. The problem is that we, minorities, are fighting for such small piece of the American pie because we don’t have access to the rest. If we don’t find a way to work together, the tension between the two groups will increase and we will end up fighting over crumbs in the end.

    “Chosu Libo, a respected South Korean newspaper reports assistance from the U.S. and Korean governments some 40 years ago.”

    It’s Chosun Ilbo. The writer of this article couldn’t even get the name right? How reliable is the rest of the information?

  8. avatar KarenC says:

    I loved this article. I found it very informative & eye opening. Thank you for writing it.

  9. avatar dvine says:

    if i could find one black owned hair store i’d go there regardless of price..

  10. avatar charles says:

    The black female is te answer! We could begin to retake the industry tomorrow if African American women used their collective resources to organize. For example, what if the Deltas and AKA’S decided they would take the leed and open black owned beauty supply stores. One group takes all states east of the Mississippi the other takes the west. Any manufacturer that would not wholesale the product to our stores at exactly the same price as Korean owned stores, would be immediately boycotted nationally. This would allow us to promote more African American owned product lines along with lines owned by others (for now). How many jobs would be created and how many dollars could be re circulated in our community? We must begin to put these type of thoughts into the minds of our young high school and college students that they might return to their own neighborhoods and prosper.
    . Remember, the African American female represents 100 percent of the customer base for Korean owned beauty supply stores without them there is no business. Sistas, let’s get busy!

  11. [...] and yes, even hustlers (in a good way). It was a thing of beauty. Considering the fact that the black hair care industry is a billion dollar industry which very little of the funds seem to trickle back into our communities enough to make a major [...]

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