Core Viewpoint - The controversy surrounding Schwarzkopf's product packaging translation has sparked significant consumer backlash, leading the company to issue an apology and commit to updating its packaging language for better clarity and sensitivity [1][5][8]. Company Response - Schwarzkopf acknowledged the issue, stating that the translation of "virgin hair" was not accurately conveyed in Chinese, and they have initiated a review of their packaging to ensure more appropriate language is used in the future [1][8]. - The company has also promised to enhance its internal review processes to prevent similar issues from occurring again [8]. Consumer Reaction - Consumers expressed outrage over the term "virgin hair," questioning its appropriateness and the lack of oversight in the translation process [5][8]. - Despite the company's apology, many consumers remain dissatisfied, with ongoing debates in the comments section regarding the company's handling of the situation [8]. Company Background - Schwarzkopf, founded in 1898, has a long history in the hair care industry, known for innovations such as the first dry shampoo and non-alkaline shampoo [9]. - The brand is part of Henkel, which has been expanding its consumer goods segment, particularly in the Asia-Pacific market, through acquisitions and product development [11]. Financial Performance - Henkel reported a nominal sales decline of 3.8% in the first half of the year, with specific challenges in the consumer brands division, including a 1.6% organic sales decline [13][14]. - The hair care segment, however, saw a 0.9% organic sales growth in the same period, indicating some resilience despite broader market challenges [14][15]. Future Outlook - Henkel has revised its sales growth expectations for the upcoming fiscal year, now projecting organic sales growth of 1% to 2%, down from a previous estimate of 1.5% to 3.5% [15].

Core Viewpoint - The hair care market is becoming a significant opportunity for both domestic and international companies, with increasing investments and acquisitions in this sector [1][2][9]. Investment and Acquisition Activities - In 2023, notable acquisitions include L'Oréal's purchase of Color Wow and Kid's King's acquisition of the hair care brand Si Yu for 1.65 billion yuan [1]. - Blackstone is in negotiations to acquire Juno Hair, South Korea's largest high-end salon chain, for approximately 590 million USD (around 4.233 billion yuan), which would be one of the largest acquisitions in the personal care services industry in Korea [2][5][7]. Financial Performance and Valuation - Juno Hair reported sales of approximately 300 billion KRW (around 1.572 billion yuan) last year, with an EBITDA of 37 billion KRW (around 194 million yuan) [4]. - The proposed acquisition valuation for Juno Hair is over 20 times its EBITDA, which is considered unusually high for the Korean salon industry [2][5]. Market Growth and Trends - The global shampoo market is projected to grow from 34.46 billion USD (approximately 247.185 billion yuan) in 2023 to 56.54 billion USD (approximately 405.567 billion yuan) by 2032, with a compound annual growth rate (CAGR) of 5.71% [9]. - The Chinese hair care market has expanded from 43.39 billion yuan in 2017 to 65.5 billion yuan in 2023, with expectations to reach 82.79 billion yuan by 2027 [13]. Competitive Landscape - Major international beauty brands, including L'Oréal and Proya, are actively entering the hair care market, with L'Oréal's professional hair product division experiencing continuous sales growth [11][14]. - Domestic brands are focusing on launching new hair care products, with significant growth reported in high-end segments [14][17]. Emerging Opportunities - The scalp care segment is identified as a potential growth area, with a significant increase in consumer interest and market size for anti-hair loss products, projected to grow from 2.332 billion yuan in 2018 to 7.636 billion yuan in 2022 [18]. - Companies are shifting their focus from traditional hair care solutions to innovative scalp and hair management products, indicating a trend towards more specialized offerings in the market [17][18].