Core Insights - The hairdressing industry, despite being a high-frequency necessity, is facing a significant wave of closures, with nearly 700,000 shops disappearing and over 180,000 shutting down since 2022 [3][19] - The current state of hair salons is characterized by a lack of customer connection, confusing pricing structures, and a decline in service quality, leading to customer dissatisfaction [5][21][24] Industry Overview - The hairdressing sector saw explosive growth from 2018 to 2021, with an annual increase of approximately 176,000 new shops, peaking at 1.144 million total establishments [17][19] - However, this growth was unsustainable, resulting in a closure rate that has surpassed 700,000 shops over a few years [19] Pricing and Service Quality - The pricing structure in salons has escalated dramatically, with average prices in first- and second-tier cities exceeding 260 yuan, and top salons in Shenzhen averaging 775 yuan per visit [21][22] - Despite the high prices, service quality has not improved correspondingly, leading to widespread customer complaints about miscommunication and unsatisfactory results [21][24][26] Challenges Faced by Salons - Salons are caught in a dilemma of needing to raise prices to cover costs (which can account for 55%-70% of expenses) while fearing loss of customers due to perceived high costs [31][33] - Many salons resort to deceptive practices, such as low initial pricing to attract customers, only to upsell additional services at inflated prices [36][38] Consumer Behavior and Market Trends - Consumer trust has eroded due to frequent complaints about service quality and hidden costs, leading to a decrease in repeat business [40][44] - Some consumers are opting for DIY haircuts at home, reflecting a shift in behavior as they seek to avoid the pitfalls of traditional salons [50] Future Outlook - The future of the hairdressing industry may depend on a return to basics, focusing on skill, transparent pricing, and genuine customer service rather than gimmicks and upselling [52][54] - Successful models emerging in the industry emphasize understanding customer needs and providing straightforward, quality service without unnecessary complications [46][52]