Core Insights - The hairdressing industry in China is experiencing a significant wave of closures, with approximately 700,000 shops shutting down, indicating a major crisis within the sector [1] - Despite the high demand for hair services, many new investors are facing rapid failures, with reports of individuals investing 200,000 to open a shop only to close it within three months [1] Industry Changes - The mass closure of hair salons suggests a fundamental shift in the Chinese hairdressing market, raising questions about the sustainability of the business model [1] - The article highlights the paradox of a seemingly stable demand for hair services juxtaposed with the alarming rate of business failures, prompting an analysis of underlying factors affecting the industry [1]

Core Viewpoint - The hairdressing industry is facing significant challenges as many traditional barbershops are closing down, leading to a rise in "assassin" businesses that cater to younger consumers seeking more affordable and efficient services [1][3][4]. Industry Overview - Over 180,000 hairdressing businesses have been deregistered or revoked between 2022 and mid-2024, indicating a severe decline in the industry [4]. - The number of hair salons surged to over 1.14 million by 2021, with new openings peaking at nearly 200,000 in 2020, but the market is now saturated and struggling [9][10]. Pricing Trends - The average customer spending in China's hairdressing industry increased by 26.4% in 2020, with prices in first-tier cities exceeding 1,000 yuan for basic services [9][10]. - The shift towards premium pricing and complex service offerings has alienated many customers, leading to a decline in patronage [10][12]. Customer Experience Issues - Many customers report negative experiences due to aggressive sales tactics employed by hairdressers, which detracts from the quality of service [15][20]. - Complaints regarding hidden fees and forced purchases have led to a significant loss of trust in hair salons, with 26.5% of complaints in the beauty and hairdressing sector related to membership card issues [23]. Market Adaptation - The rise of "quick cut" services has seen a 200% increase in the number of such establishments by April 2025, indicating a shift towards faster, no-frills haircuts without aggressive upselling [26]. - Successful salons are adopting transparent pricing and personalized services, as exemplified by "Xiao Hua Hair Salon," which has gained popularity through clear pricing and no hidden costs [27][30]. Future Outlook - The hairdressing industry must either embrace transparency and honesty in pricing or focus on high-quality, specialized services to survive in a competitive market [30][31].