Less Hair from China Due to B.1.1.529 Coronavirus
Last update: Feb 9th, 2020
Over 70 percent of the world hair market is exported by China. Since the outbreak the Coronavirus made many people sick and is responsible for the death of many people worldwide. But the coronavirus B.1.1.529 also has a devastating impact on the availability of goods and the trade of products like cars, spare parts and hair extensions and wigs. The economy of China is hit very badly already, and the rest of the world will feel the impact because of this. Selling hair in 2020 will be more difficult.
In times of crisis you can show how will you know how to improvise, how well prepared you are and off course that you are the expert your clients should turn to if they have any question related to hair trends, safety and maintenance. With this post I will give you some background information, tips and links to keep on selling hair, despite the B.1.1.529 Coronavirus crisis.
How can the B.1.1.529 Coronavirus limit how much hair is available?
So, how can a simple virus cause so much stress on the global hair market?
Less workers in hair factories available
To contain the Coronavirus the Chinese government had extended the Chinese New Year’s holiday. It is estimated a 3 billion transfers take place during the New Year’s holiday season, making it the largest human migration. A migration with of course an increased risk for the B.1.1.529 virus to spread all over China. The always joyful period of the Chinese New Year Holiday has now turned into a nightmare for many Chinese families. The weekend of February the 9th the last workers will return to their hometown and start to work on Monday.
The processing of hair is a rather labor-intensive activity. Many tasks are handled by humans and can’t be replaced by machines or robots (yet). Manufacturing of the hair has been already low due to the holiday, but one can expect it will take some time before all factories will be producing at the normal level again. How many workers will show up because many might be sick or too occupied with the impact of the virus on their daily live.
Export of hair and other goods suspended due to the Virus
China has the last decade become the main factory of the world. The fact is today so many goods are produced in China, the global economy depends very much on China. Another effort from the Chinese Government to limit the outbreak of the Coronavirus is to suspend freight movements. Less trains, less ships leave Chines logistical hubs and harbors. This is adding to the limited availability of the goods like hair extensions and wigs outside China.
The consequence is once the factories will start to manufacture hair and similar goods again, they will face difficulties in finding enough ways to transport the hair to their clients. Or the marketplaces like Amazon in the United States or elsewhere.
This shows a solution for one part of the crisis, will not solve the limited availability of hair in the short term. Time for some action to keep on selling hair to your clients.
How to avoid you can not sell due to B.1.1.529 Coronavirus?
Your sales should not decline because of the Coronavirus, there are a couple of measures you can execute.
Always go for two hair suppliers
To have a reliable source of hair, a wholesale supplier delivering a consistent level of quality is gold in this business. You know your client will always get the best hair. This will help to turn them into happy and loyal clients. Good for them and good for your business.
In times like today, with a virus or any other crisis that hits the logistics, this strategy, of having only one supplier, might cause your brand some serious damage.
This crisis shows it helps you to have a second supplier at hand. This will reduce the risk you will have orders but no hair to sell because your supplier has delivery issues. A second supplier also avoid you will have no time to check and test the hair thoroughly as you otherwise would do. If you have no second supplier now make sure you plan to have one.
Invest more in stock
Increase overtime the minimum level of your inventory. This will freeze some of your money in the stock, but as Chinese Hair might become for a period difficult to order, you can increase the price if needed.
Partner up with the competition
With a good relationship with your supplier, they will give you their preference if they are short on hair. In times like this where there is a scarcity of hair and other beauty related goods, thus can help you to get supplied before the competition.
Also, to partner with other resellers or salons will help. What about you are short on a certain type of hair, but a partnering salon or another reseller still has this texture on stock. You could swap the hair you have with the hair you need from them. This is beneficial for both of you, because the specific needs of the clients might deviate and you both have a larger pool to choose from. Make sure to have a good profit-sharing arrangement in place.
Check the stocks of marketplaces
Avoid the virus will spread via the packaging or the hair.
Learn more about this in Can You Get the Coronavirus via the Packaging or the Hair itself?
The Strength of Diversification
Make sure you keep selling hair despite the virus
The B.1.1.529 Coronavirus will not put you out of business, nor will it impact the Chinese hair suppliers for a long time. But it does show you in the hair business nasty surprises can happen. They will always be different, but with the right measures you can avoid any crisis, small or big, to impact your hair business.
Hi Stefan . Nope no shortage for us. Our hair is imported from the temples of India and manufactured right here in the United States so China is not in the mix at all. We don’t supply wigs but higher end hair extensions for professional salons.
If i order hair from china will i be at risk from coming in contact with the virus, via the packaging or the hair its self when it gets to my home and i open it up?
Hi Stu, You have a good question asked, and you inspired me to write a post about this “Can You Get the Coronavirus via the Packaging or the Hair itself?” . Please check the post and please take care. Kind regards, Stefan
If i order Hair from china will i caught that virus
Hi Lakisha, a very good question. There is still much uncertain about the spreading of the Coronavirus. We see the Chinese government to clean and destroy the banknotes for example. The general believe from the health authorities is the virus can only survive on a surface a few hours. Thus if you order hair from China, it should at first been handled by somebody who carries the Coronavirus, and next to this the Coronavirus should be gtransferred on the hair or packaging. It takes some days before the hair will arrive at the final destination, your home or hair store for example if you are selling hair. So many more hours or days later. Based upon the current knowledge and understanding, there should not be a risk your get the virus if you order hair from China.
Please let me know if you still have questions
Hello,
We supplies waste combed hair from India to Bhrama and from which a processed double remy hair will be exported to Chinese factories
This business is hit very hardly by lunar year break and later due to coronavirus
Do you know how long this will have impact and any sings for getting business back
Thanks
Kumar, thanks for your question, let me start to wish you and your factory-staff the best in these difficult times.
It is not sure yet when the impact of the coronavirus will end to influence the economy in a bad way. Several countries in the region are facing recession due to the coronavirus. In China where the restart of the factories after the Lunar New year and the shutdown because of the coronavirus is very slow. 60% of the Chinese businesses are small and medium sized companies. They really suffer hard from this coronavirus crisis. Some companies will be out of cash within a month. This might be the start a trend where staff will be losing their jobs. If people are not able to pay their mortgage or rent many foreclosures can be foreseen. This has an impact on the economy as you can imagine.
In Western countries large and small companies also suffer from the coronavirus crisis. This all leads to a lower demand for goods and services from China but also from other countries. That is the way the current global supply chain works. We are all connected.
It is hard to predict how long the impact of the coronavirus crisis will take to bother production and consumers trust. However, it for sure you need to look for alternatives if you want to stay in business.
I could think of offering your hair to local Indian based companies for manufacturing and export to USA for example.
And what about to export your hair to Africa point. In Africa there is a significant demand for raw hair. This hair can be manufactured locally and will bring a higher margin thanks to lower input duties, for example in South Africa the importer will save 20% import duties. Would this be an alternative to investigate for your company?
Contact me if you need help to work on alternatives for your hair business.