Black Hair Big Business

The profit margins in the black hair care business have increased year by year since the earliest days of the twentieth-century. As a vertical market, this niche industry blossomed in Chicago where several development, manufacturing, distribution, and marketing companies opened their doors to serve the hair care market. Products produced by these companies initially addressed the general population. However, it soon became apparent that a large sub-category could be found serving consumers of African descent. This market also provided opportunities for African-American businesspeople to start successful companies of their own.

Today there are thousands of black hair care and beauty aid products available for the African-American consumer. Over the years, companies that produced black hair care products either relocated to other cities, or were acquired by other organizations. Nevertheless, the major players whose names continue to be synonymous with black hair care like: Alberto-Culver, Helene Curtis, Kashmir Chemical Company, Fuller Products Company, and the Johnson Products Company, still dominate the industry. Although the manufacturing segment of black hair care remains full of black participants, the retail and wholesale sector has changed dramatically.

Since the early 1980’s, the Korean community has steadily made inroads to control the black hair marketplace. In addition to the thousands of hair care and beauty products lining the shelves of their global stores, you will also find that weaves and wigs are easily accessible through a web of Korean channels as well! Simply visit a beauty supply store, large specialty outlet, or product distributor and you’ll realize that a substantial change has taken place as Korean families now dominate the black hair care market.

Sam Ennon, President, [BOBSA] Black Owned Beauty Supply Association, explained how the association, with its 4,000+ members, plans to regain its foothold in the $9.2 billion industry: “We realized that the only way to help bring the industry back to the black community was to help the community help itself. To that end we’ve designed a plan for black churches to own and operate the beauty supply stores. The thinking behind this is that blacks prefer to buy black product from black run businesses. This way the community not only retakes ownership of the industry but they, the churches, will in turn reinvest much, if not most of the profits from product sales back into the community. It’s a win-win no matter how you look at it”

Mr. Ennon continues: “all products distributed to the church stores will be contracted for by BOBSA and will be stamped with the BOBSA logo so that our customers know that they are purchasing black products. BOBSA will also train church members interested in working in the store in whatever capacity they are best suited. This will insure that the staff is properly prepared for their work and will also improve employee retention. Another result is that the church will be open many more hours during the week and should attract new members as well.”