Page 59 - 第20期杂志

BUSinESS SCHooL 商学院 HEAD FASHION

The Turning Point of China’s Hair Product
Industry in 2008

The American financial crisis of 2008 is an turning point in the
course of the development of hair product industry. Despite
the short-term adjustment of hair product industry in 2008,
the hair product industry once again embarked on the path of
expanding scale under the incentive policies formulated by all
The Variance History of Hair Product the countries. In fact, the hair product industry entered into a
Industry in China over the Past Century period characterized by long-term fluctuation and adjustment,
which is still impacting today’s market. First, the financial
The hair product industry boasts more than 100 years crisis in America soon spread to Europe and other regions,
of history in China. 5 score years ago, the collection, thus causing the debt crisis in Europe and the monetary crisis
processing and sales of hair were found in Henan, in other regions, cracking down on the export market of hair
Anhui and Shandong. Shortly after the founding of products and reversing the overseas market demands that
People’s Republic of China, there was the activity hair products depend on. Second, the increasing costs of labor
of processing hair products in Qingdao and other forces and each element have battered the profit margin of
coastal areas. Qingdao Jifa Group grew out of the enterprises. Third, the adjustment of the national policy of tax
Rural Handicraft Industry Dangfa Cooperative of 1955. reimbursement for export and RMB appreciation have further
Thanks to the rapid development of export-oriented influenced the development environment of the industry. The
labor-intensive industry after the reform and opening two-time adjustment of tax policies in April and June 2015
up, the hair product industry also ushered in its golden have undermined the support for tax reimbursement for
age at the end of the 1980s when a large number of export. Looking back, I find that 2008 is the watershed in the
Korea-invested and Hong Kong-invested enterprises development course of hair product industry.
began to transfer their plants to the Chinese mainland.
The mainland suppliers of raw materials also completed Besides, the rising cross-border e-commerce over the past few
their original capital accumulation and set up their own years also becomes a factor disturbing the development of hair
enterprises to develop the processing and sales of hair product industry. E-commerce is like a double-edged sword. For
products. one thing, it has impacted the traditional sales channel of hair
products by decomposing the traditional business model; for
Before the outbreak of financial crisis in 2008, benefiting another, it also establishes a new model featuring the interaction
from the sound international and domestic development between consumers and factories through internet. The study
environment, the hair product industry has always of the changes in hair product industry and the pursuit of the
maintained its rapid development. There is a great way of industrial development is a factor that e-commerce must
demand in the American and European consumer take into consideration.
market, where the supply falls short of demand. China
boasts the low-cost labor forces but strong profitability. Having been accustomed to the rapid and smooth development
At the same time, the national industrial policies, well- over the past three decades, people find it very difficult to adapt
implemented policy of tax reimbursement for export to the reversed industrial situation. However, where is the way
and the RMB exchange rate range that is favorable leading to the future? Here, I would like to share some of my
to export are also conducive to the development of superficial understanding and hope to induce more insightful
hair product industry. All these favorable conditions ideas.
have supported the 30-year sustained and rapid
development of hair product industry and consolidated
the leading position of China’s hair product industry in The Integration of Hairdressing Culture
the global production.
First, 2008 is a turning point in the development model of labor-

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