In recent years, the aging population in China has intensified, bringing the “silver economy” into the spotlight. In response, the government has been actively implementing policies aimed at nurturing new economic growth drivers and improving the quality of life for the elderly, particularly by supporting the development of the health and wellness industry.
As of January 2024, the State Council issued the first official policy document on the silver economy, titled “Opinions on Developing the Silver Economy to Enhance the Well-being of the Elderly.” This document emphasizes the importance of developing the anti-aging industry, including research into skin aging mechanisms, human aging models, and hair health.
Among the various sectors within this emerging industry, the hair loss and gray hair treatment market is gaining considerable attention. However, a report from CITIC Securities noted that the hair care market size reached approximately 63.6 billion yuan in 2023, with growth rates stabilizing. Despite this, Wu Qinghui, founder of Hei Aomi, believes that the hair care sector is filled with diverse and competitive opportunities.
In an interview, Wu shared his insights on the development of the hair loss and gray hair treatment industry. He explained that during his market research in 2018, he found that consumers exhibited a stronger demand to address hair loss and gray hair than for general hair care. This discovery led him to create a new category focused specifically on treating these issues within the larger hair care market.
“We do face competition in our industry, but it’s not overly saturated yet,” Wu remarked. He believes that aligning product offerings with consumer needs and establishing strong brand leadership is crucial. According to Wu, behind every successful brand lies a mix of functional and emotional appeals. Hei Aomi’s investment in product technology and its specialized services address these needs effectively, helping users feel younger and more confident after treatment.
The recent “China Silver Population Health and Elderly Care Consumption Report” published by JD Health and iResearch suggests that under supportive macro policies, China’s silver economy could grow to an impressive 30 trillion yuan by 2035. As living standards and health consciousness rise, the health management demands of older adults are becoming increasingly diverse, going beyond mere disease treatment to encompass various proactive care options.
Wu resonates with the notion of diverse and personalized health needs within the elderly population. He pointed out that while Hei Aomi primarily targets individuals aged 30 to 45, there is a growing number of female customers in their 50s and even 60s. He observes that many retired women are energetic and have more time to invest in their interests. This idea echoes sentiments expressed by spokesperson Zhao Yazhi, who has famously said, “Healthy hair doesn’t make you look old; it’s my secret to staying youthful,” which has struck a chord with many women. Hei Aomi’s mission of ensuring “everyone can have great hair” is increasingly resonating with a broader audience.
However, the hair health industry is facing both opportunities and challenges. On one hand, the changing demands of the elderly population and the expanding market present new business prospects; on the other hand, intensified competition poses significant challenges for companies.
In 2018, during his research, Wu noticed that, in addition to professional hair care chains, many hair salons were entering the competitive landscape. This observation prompted him to pursue the creation of a new niche. He discovered through deep communication with customers that their desire to address hair loss and gray hair was much stronger than for general care, and at that time, there was a lack of specialized brands in the market.
Wu categorizes the hair health industry into five business types: pharmaceuticals, hair transplants, therapeutic treatments, anti-hair loss shampoos, and hair care. Each type corresponds to various sales channels, including medical institutions, professional therapeutic centers, e-commerce, and casual hair care shops. Hei Aomi falls into the category of specialized solutions situated between medical care and daily products.
Today, the hair health industry has entered a new phase where health consciousness is further entrenched, making scalp care a prevalent industry narrative. According to the “China Hair Loss and Gray Hair Therapy Industry Insight Report,” specialized therapy institutions are focused on providing scientific treatment experiences using methods like manual therapy and laser treatments to control and improve issues related to hair loss and gray hair.
Wu believes that while the treatment sector leans towards medical aspects, it should not be classified strictly as a medical institution. The professionalism and service that Hei Aomi offers distinguish it significantly from regular hair care facilities. The structural differences between its products and typical hair care items are apparent. In recent years, Hei Aomi has developed its product line in collaboration with domestic and international research institutions, resulting in a range based on high polymers, bioactive enzymes, fullerenes, and collagen, supported by numerous patented technologies.
Wu asserts that the hair loss and gray hair treatment space is not saturated. The foundation of a successful brand lies in addressing both functional and emotional needs, and Hei Aomi has achieved this through its well-crafted service environments and high-quality offerings. He anticipates that the integration of online and offline experiences will continue to be one of Hei Aomi’s strengths.
As for future aspirations, Wu highlighted that the recent policy direction aims to cultivate leading enterprises in the silver economy through support for chain and group development. Founded in 2006, Hei Aomi currently operates over 1,000 stores in more than 200 cities globally. Wu expressed his hope to increase market penetration and scale up to 5,000 or 6,000 stores within the next 3-4 years while accelerating international expansion.
Over nearly 20 years of entrepreneurship, Wu has experienced two rounds of financing, the first in 2018 and the second around 2019. He candidly noted that the company’s primary objective in recent years has been organizational restructuring. Given the evolving market environment, there has been a shift in the requirements for employee skills and values. Finding individuals who possess strong competencies and share the company’s vision has proven to be a challenge, and even when the right talent is found, it requires time for acclimation.
