Discussion keeps the world's turning.
This is Roundtable. Hello everybody, welcome to Roundtable.
Coming to you live from Beijing, I'm your host, Huayang.
Good as always to have you join us on today's show.
Today we're covering everything about haircuts, where your local barber shop and your hair salon are no longer just about a quick trim.
Discover how specialized services are transforming the way.
We pamper ourselves. And for those seeking a simple budget friendly haircut, what options are out there?
Our haircuts getting way too expensive.
And we're on a mission of starting your week with a motivational kick.
Our motivational Monday offerings will get you ready to tackle the week.
For today's program, I'm joined by Li Yi and Brandon Yates in the studio.
First on a nice show. From cozy neighborhood barber shops to hot hair salons, the plain old haircut may have transformed into a style statement with the beauty industry witnessing a surge in specialized services.
Think of fashion-forward styling, luxurious beauty facials, and personalized scalp treatments as well.
And in Chinese, that is Poupi Juli, which is generating a lot of income for these institutions.
And all conveniently housed under one roof where we get our hair done.
As the sound of scissors snipping and clippers humming fills the air, consumers are feeling the pinch of an increasingly expensive hair dressing experience.
So let's go to Li Yi. First, let's look at how expensive is a haircut these days?
Sure. Overall, there is like a common observation from the consumer side that the overall price of haircuts has become more expensive than ever.
The data from some domestic review platforms shows that in first-tier cities here in China, like Beijing, Shanghai, Guangzhou, and Xinjiang, the average hair dressing prices are much higher than those in other new first-tier cities, or new emerging cities.
Among the 19 cities surveyed, hair dressing prices range from a minimum of 33 yuan.
That's about $4.5 US to a maximum of $1,520 yuan.
That's about $200 US dollars.
For a haircut? Yes, for a haircut.
At least in sanity. Yes, so that means that in this cities, you can simply get a haircut cost at least, I mean, 33 yuan, not to mention some other complicated services like dying, perming, and hair extensions.
And according to another report released by ChinaBaoGao.com, in 2021, the average spending per customer at beauty and hair salons in medium-sized cities here in China reached 263 yuan per person.
That's about $3.36 US dollars.
And by 2022, Xinjiang has emerged as the city with the highest hair dressing price among first-tier cities.
With the top, with the average consumption price at the top 20 most popular hair salons reaching 775 yuan.
For comparison, five years ago, most of residents might have spent around a 21 for a haircut.
Right, so actually looking at these numbers, there are some intricacies we can get into.
But, you know, just off the bat, what do you think when you see these numbers?
I mean, I've had mixed reports.
I mean, obviously coming to China and having a haircut has been a different experience for me.
Why is that? Well, because I think the way that, you know, I suppose when you look at men's haircuts and you look at Chinese men's hair versus like European men's hair, it looks very similar, but the actual texture is quite different.
So the way that it needs to be cut is quite different.
So I think a lot of barbers around this area, for example, I don't think they're that familiar with my sort of hair.
So even if I ask for a specific style, it's quite difficult to cut it in the way that I would like it to turn out.
So I had an experience like that where a young, I suppose inexperienced barber was cutting my hair and it wasn't quite going the way that I thought it would.
And then the owner kind of like jumped in and took who was probably 20 years older than the hairdresser and took over and managed to sort it out.
But then that, I think my hair got became more expensive because the owner had taken over.
So what could have been 50, 60, when ended up being like 160, you and but I'm willing to pay more to get what I want.
So maybe that's what's happening is that people are willing to spend higher amounts of money to get the style that they want.
But yeah, I've had mixed reports because some of my male colleagues have said, wow, 160 you and that's crazy.
I get my hair cut for like 30, 40 you and so I think it depends on the style or the difficulty.
There's various factors to consider.
Yes, and I would also like to join in that similar note.
Years ago when I was living in the UK, actually I had the exact same sort of thought process that was it was difficult for me to find a hairdresser that could handle my Asian hair.
Because it looks so like when you just look at it without touching it, our hair looks almost identical.
But the actual texture of European and Asian hair is really different.
It's really different to the feel.
It's really different.
Absolutely. And then the hairdresser couldn't really handle my hair properly.
Also, I realized as a Chinese person who didn't have a lot of field-specific Lexus to use to describe how I want my hair to be done, it was almost mission impossible in trying to describe an English to that person how exactly I wanted my hair to be done.
And then also I talked to some of my African-American friends and then they also have this.
And that's also a whole different point.
And it's a different, and they mentioned to me that in the US actually finding a hairdresser that knows your hair texture and style is actually quite difficult.
So it's really interesting with something that looks kind of trivial and maybe superficial to some extent at first glance actually there's a lot to talk about.
And also you've raised a really good point, Brandon, that for folks including my dad and some of my male friends who don't want to break the bank in having a haircut.
Actually, there are options out there.
Yeah, we do see some cheaper options here in China, I mean across the whole country.
There are some super cheap hairdressers like who are offering like super cheap menu set for example you can have a simple haircut for about 10 or 15 yuan.
And of course the whole process is super easy.
Actually, in my building where I get my groceries, where I get my groceries, there's a lineup of men.
I mean there must be like 30, 40 men that I see every single day going in for a variety of ages and you know that kind of thing.
Or waiting line and yeah, so Brandon, do you see them going into like a kind of fancy area?
No, so it's like it's like a it's a tiny little bar, but I mean it's probably smaller than the studio that we're in.
Okay, but and there's normally one or two barbers, but the lineup is incredibly long because I think they get really effective quick haircuts for very low prices.
And I think a lot of the guys that are getting their haircuts in that situation don't require particularly complicated styles either.
They just want the same hair style.
So basically you just you get your potatoes to meadows and veggies.
And then after that you go get a haircut and off you go.
Same and so that's a good too.
I mean there's a lot of examples where there's a variety of services that are affordable and efficient that are all kind of in one venue.
And I think for guys when we are kind of lazy and we don't have very specific requirements with our styling and you know things that we want to get done.
That convenience factor and the low prices is very appealing, but that being said as I've gotten older and I'm more concerned about you know my skin and potentially losing my hair and you know all of those things kind of become more of a concern as I get older.
I'm willing to spend more and seek out better treatments for certain things.
And I think that also might be linked to some of the financials that we've discussed and the amount of money that people are willing to spend on things like hair care treatments, skin treatments, etc.
Yeah and also you know despite 40 products or what kind of like hair cut service you can get at these kind of hairdressers.
I think people are also complaining about the service provided there.
I mean for those so-called quick cut shops actually one of the most attractive things is that it is being fast and efficient and you don't really have a lot of communication with hairdressers.
I love this. Yeah that's exactly what I hate to chat with hairdresser.
I just want to like sit there and close my eyes and relax.
I don't want to hear about like your cats or how your weak's been.
No not interested. You see there are some like special needs like someone like you Brendan you know some people love it.
They love chat to be hairdresses.
Yes and also there are some customers complaining about there being you know over-service at you know a lot of hairdressers.
I mean like those hairdressers are always like to try to talk to you try to sell their membership cards.
That's the most important thing.
That used to be a very very common thing but in this very quick quick cut shops you don't already get that concerns.
And also you mentioned about how people might be willing to pay for extra you know products or very very good quality products.
I think that's true because here in China when you're looking at those hairdressing relevant content on social media you don't see a lot of like KLLs or simply average users they are saying something like we want or like not only for hair care but also scalp care you mentioned.
Basically we want to look good and beyond that we also want to be healthy.
We want the whole thing to be really soothing and help us relax our mind and also good for our mental well-being.
Yeah my biggest thing is like I'm concerned about my skin.
Like I'm not I'm not concerned with aging but I don't want to age like I don't want to look older than I am.
And I'm also very concerned about hair loss is my biggest fear.
I'm like as soon as I go bald that's like that's the end of my single life.
So I'm going to try and do absolutely everything I can to make sure that I keep my hair for as long as possible.
So whatever it costs I'm willing to spend.
Yeah and that's what a lot of people men and women feel.
And also just the rock Jason Stavum you know just I'm not that manly.
I feel like the bald look wouldn't look great on me but men like that that are super muskily and you know super tall.
I suppose it kind of works for them but for me I think I would look like Lex Luthor it wouldn't be a good look for me.
Who knows in a few years time well maybe won't need it you won't need it and then also you know build body building.
If I did go bald I would invest in a really high quality wig that's what I would do.
There are some really good options.
Yeah I've seen some amazing wigs on social media like it's crazy the advancements that have been made with wigs and also just with hair transplant technology as well.
Oh yes that too. Incredible yeah.
And also I guess this presumed anxiety of hair loss is one of the reasons that drive people to enjoy and purchase a lot of these rather expensive scalp or skin spots as such.
And also your scalp is basically you know the massive amount of skin that's just you know under the hair where it's grown so there you go.
And that's exactly why we are seeing more young consumers here in China.
They are more than willing to pay for very high-end hair care products or services because here in China you know sadly younger generation is also experiencing higher loss 20 years earlier than previous generations.
And according to a white paper by Alibaba Health Information Technology Company in 2018 post 1990s generation accounted for 36% while the post 1980s made up 38% of the hair shedding population.
And also baldness is becoming increasingly becoming a university learners.
So that's why we do see like a you know explainable consuming trend on JD.com sells of hair growing shampoo searched by 136% in the first quarter of 2018 year on year.
And on another e-commerce giant the top of hair products including vibrating hair brushes, herbal remedies and even medication used for hair growth or among its top 40 best selling lines.
So that means over 40% of sales of which were made by consumers and their 30 years.
Interesting that you mentioned university students there because I also think that a lot of hair loss at a young age is linked to stress and we've had a lot of discussions in the past where we've mentioned how much pressure some of these university students are under so I'm not surprised that there's a trend that's increasing of university students that are suffering from hair loss.
Along with I'm sure plenty of other you know physical and mental health issues.
And also when people start working the pressure.
Well most people I think it doesn't really end.
Yeah. And also the figures that you just mentioned the year where they mostly for these consumers to book the delivery and have a deliver to their home or is this in salon on premise consumption.
I think you know for those like e-commerce platforms they're simply buying those products and trying to maybe do some cheaper way to do it.
But also for some of us who are just really bad at handling these things ourselves and they're like yeah and also they have these spa specialists who take take care of your scalp and also your hair.
And then this service is actually the more expensive or actually the service that's bringing the big bucks because actually you know just hair cutting and these days dying your hair and styling those things aren't really the new revenue stream.
So for a lot of these hair salons how to really rake in that much needed capital or let's just say revenue and then it's a lot of it is to you know they basically purchase these hair products at a pretty cheap product.
Pretty cheap price we don't know how cheap it is and then they sell it and the service along the side at a much more expensive rate and that's how they make money.
Yes and also on top of that I think there is another tricky point here that is you know customers are feeling pretty insecure about the products they they are being given at those barber shops.
Because here I think consumers they are increasing awareness of you know the functionality and also the ingredients of the products they are using.
And however we do see some like complaints from the industry saying that they are not really hair dressers they are not really giving you the best of products although they are claiming to do so.
So we do need some like transparency during the whole process I guess.
And also this one is for you Brandon I mean there's the saying you get what you pay for and that's often touted in the beauty industry but is the but is a haircut really worth its high price tag these days.
I mean I think not necessarily a haircut I think it with regards to strictly a haircut I think it has to do with the level of difficulty and how long it takes to actually make that haircut a reality.
But I think people spending more money with regards to the other services that we mentioned with regards to scalp health you know all of the other treatments that you could potentially get.
Then I think spending more money there makes sense and with regards to getting what you pay for I also think that some of the responsibility should also be with the customers I think if they are very concerned about the ingredients in certain products and you know whatever the barber or hair salon is.
Suggesting to them if they do enough research then I think they can also prevent themselves from unknowingly taking on products that could potentially be harmful or not as impactful as they would hope to be considering how much money they spending so it's good to be concerned about you know hair and scalp health.
But if you are seriously concerned maybe also consider doing some research before you know you go to your next hair salon appointment.
That's a good point but often I feel as the consumer you really you're kind of in a really vulnerable state in the sense that okay even if you've done some research but you go in and it's either you're paying for it or not.
If you don't like this then just there's the door you can leave.
I think that's to do with the styling but I mean with regards to products because I think like we've mentioned a lot of these hair salons also make their money from marked products.
So I think if you want to be sure that the product you've been given or suggested is going to be good for you then I think that's where research helps but I think yeah with regards to offering prices for certain hair styles or you know treatments that go on in the actual salon.
I think that's also just up to the customer you know the salon can say this is what we're offering this is the price take it or leave it.
And also you know there's a you know unfortunate fact that here you know wanted to research about you know haircuts especially how much time those those farmers are spending for each haircut.
They're saying that customers nowadays they don't really have the patience to sit for when hour for a haircut they want everything to be faster and faster which also lead to those hairdressers they are using simple and easier techniques to help you accomplish a haircut.
So with that I mean with that situation to customers our customers do willing to pay for high prices for simple one haircut.
I mean people might just you know opt for like maybe cheaper and easier option like the quick cut shops here.
Well but if you're not satisfied with what you're getting then you must invest more time at least you know we 10 more minutes for this person to cut your hair properly and also if you're always going to like different places or if you're not really sort of sticking with one really good hairdresser then yeah every time is a gamble.
But if you found someone that you think knows your style does it well and you trust their technique especially their sense of aesthetics and beauty then stick with that person and then you would you know feel a little bit better as opposed in knowing what you're going to get but also you know that person could be quite expensive.
Yeah I think it's tricky for both the customer and the barber or the hair salon because as a customer obviously you're not entirely sure that the salon is going to give you what you want.
So I think it does require a certain amount of gambling or chance taking and you know doing some experimentation until you find something that works for you and then from the barber side I mean you could spend two hours cutting someone's hair and expect to get a lot of money for a certain service that you provided and if that customer is not happy and they refuse to pay like what what do you do.
So I think it's tricky on both ends for different reasons.
Well if a hairdresser is willing to invest two hours on my head I'll take it because usually it's a fail one who gets this kind of treatment.
But there are some people that will sit there for two or three hours and you know at the end say I'm not happy with this I'm not paying then you know what is what is a hair stylist supposed to do.
Yeah I think I think that's exactly where those hair salons can grasp this opportunity.
I mean their techniques is one thing their service is one thing those hairdressers are also trying to create this you know emotional value provide this emotional value to your customers and try to create a special bond with your customers.
I mean with in different ways so maybe that could also be a way to create your customer loyalty and then another you know interesting fact here is that we do see some like mens.
Barbershops here in China I mean they are trying to target different audiences although women are usually considered as the loyal or customers who are more willing to pay for higher prices of services in hair dress and sector.
Because they know they're getting what they want.
Yes but now I mean there are some shops or stores they are they're targeting specially for men they are not only offering like hair cutting but also like how you do your you know facial grooming.
And everything and they're also making the stores decoration more suitable for the taste of male consumers that's also a very clever move.
Yeah I think men also value loyalty I mean for example I mean obviously there's always the language barrier when I go to a hair salon or whatever but if someone does my hair right even if it's a little bit more expensive than I would expect from other hair salons I will keep going back.
So I mean for example the haircut that I get which is very basic is more expensive almost double or triple what I would normally pay for example outside that small shop where I get my food I'm willing to go back every two or three months because I know that I'm going to get what I want for what I pay for.
Yeah I think that's what a lot of people feel.
Yeah and if they get the right haircut they'll probably go back for more unless there's like a major price hike as much and it's really interesting as we're doing research I realize that since the earlier part of last year there's been this mega discussion on tick-tock about how cutting your hair is so extremely expensive in the US.
And it had a lot to do apparently this is according to the Washington Post that there has been a decline in hair stylists during COVID and then about 10% of the industry basically walked out and therefore you've got this lot of clientile and then you've got not enough people who can cut the hair.
I mean it's expensive in South Africa too I mean our currency is much weaker than the UN for example but I mean when I compare the prices of haircuts in South Africa compared to China on averaged haircuts in China on much cheaper.
In comparison but also you need to compare it with your own sort of price level and labor cost as such but it is still sort of on a rising curve as we see the hair cutting or hair dressing price has presented.
It has presented itself in this country and also one more interesting I suppose observation which is not necessarily new but I wonder if you've seen any changes about this that is there doesn't seem to be all that many female hairdressers despite the major clientile being women who are willing to pay a bit more for their hair styling.
I do notice this trend because I still remember when I was small most of my hairdressers were women and I think yeah but somehow in recent years you don't really see a lot of women hairdressers in barber shops and actually I especially consult that question to my own hairdresser which is a man.
I really ask him why there are fewer female hairdressers he told me that is because first this work is really labor demanding it can be quite tiring for women.
Standing all day. Yes standing all day.
It's quite physical too like the chopping and the like it takes quite a lot of work.
Yes and secondly is that most of women they are entering like the skincare or cosmetic medicine industry which are super super popular here in China which are also more lucrative than hairdressing industry.
That trend is definitely extended to South Africa too where there's a lot more male hairdressers and it seems like all of the women have got into skincare and male painting and that sort of thing.
