Tag: Salon Business Tips

Boss, have you noticed a trend lately?

Over the past few years, whenever you restock from international giants like L’Oréal or Schwarzkopf, the salesperson inevitably drops the bomb: “Boss, price increasing next month.” You’re probably cursing in your head, “Again? My customers are already complaining about the prices, and you want to increase them further?”

But on the flip side, you might notice that some Chinese or local Malaysian brands maintain rock-solid pricing, or even become more affordable over time.

This isn’t an illusion. The water is deep when it comes to supply chain pricing, and today, I’m going to reveal the untold truth behind it.

Why Do International Brands Keep Raising Prices? 3 Simple Reasons.

1. They Aren’t Just Selling Products; They’re Selling “Prestige”

Have you seen the TV commercials for these global brands? Hollywood celebrities, the Eiffel Tower, actors in crisp white lab coats—making it look like your hair will magically glow upon application. Do you think those ads are free? Of course not. And who foots the bill? You and your customers. You aren’t just buying a bottle of shampoo; you are paying a premium for the “high-class feel.” If they don’t charge high prices, how can they maintain that luxury image?

2. Import Taxes & Transportation Costs Are Passed Down to You

These products travel thousands of miles from Europe or Japan. Along the way, they pass through main distributors and regional wholesalers, with each layer marking up the price. Add in import taxes and shipping fees, and it all gets factored into the cost of that single bottle. You think you are paying purely for quality, but you are actually subsidizing their shipping fees.

3. Unbelievable Marketing Expenses

Hiring global ambassadors, hosting massive launch events, and sponsoring hundreds of KOLs on TikTok costs millions. Ultimately, the salon owners on the frontline are the ones who pay for these campaigns. So, the next time you see a massive new marketing campaign from an international brand, brace yourself—a price hike is coming.

So, How Can Some Products Keep Getting Cheaper?

This is the core truth I want to share with you today.

The products that maintain stable or lower prices aren’t doing it by cutting corners. They rely on one powerful factor: Unbeatable Production Efficiency.

Let’s be real—the era of “Made in China equals cheap and low quality” is long gone. Today, they possess the most complete supply chains, ultra-efficient factories, and advanced technologies. They can achieve what we call “making it cheaper while making it better.”

For example, a Chinese brand utilizing a strong OEM/ODM model can go from R&D to final product launch in just four months. In those same four months, a global brand might still be in meetings discussing the font size on their packaging. Time is cost, and speed equals savings!

Furthermore, their domestic market is fiercely competitive. With hundreds of brands fighting for market share, nobody dares to simply raise prices. If you do, a competitor will immediately release a product of identical quality at a lower price. This intense rivalry forces manufacturers to upgrade quality while compressing costs. As a result, the products coming out are often on par with international brands, but at a much friendlier price point.

Where Do Malaysian Local Brands Fit In?

At this point, you might be asking: “If international brands are too expensive and Chinese brands offer great value, how do our own Malaysian local brands survive?”

That’s a great question. Based on the current market, local brands sit right in the middle. They aren’t the cheapest, nor the most expensive. But they possess one unique advantage that nobody else can replicate: They understand the Malaysian scalp.

Think about our weather—365 days of hot, humid summer. Malaysian scalps are prone to oiliness, sensitivity, or itchiness, especially for our Muslim clients who wear Tudungs. Do European formulators understand this specific pain point? Do manufacturers in winter climates truly grasp what a scalp feels like in 38-degree heat?

The biggest strength of local brands is Localized Formulation. They formulate specifically for our climate, water quality, and lifestyle. Plus, because they are manufactured locally, the supply chain is short. There is no currency exchange risk or heavy import duty, which should ideally make their pricing very competitive.

But Why Do Some Local Brands Fail?

Here is the harsh reality. Many salon owners tell me, “It’s not that we don’t want to support local brands. It’s because some local brands keep raising prices without improving their quality, trying to match international price levels.”

If you raise prices without matching the quality, while Chinese brands continuously improve, why should salons stick with you? Salons aren’t switching because they are “cheap”; they are switching for Cost-Performance (ROI).

If local brands rely solely on “support local” sympathy without delivering true value, they will lose the mid-range market. However, local brands that focus on high-quality ingredients, fair pricing, and solving real local problems (like our local hero brands with JAKIM Halal certification) will always have a strong, loyal following.

The Ultimate Lesson for Salon Owners

What should you take away from this?

When selecting products for your salon, drop the outdated mindset that “expensive always means better.” You need to see through the pricing.

Some products are expensive because you are paying for their ads. Some products have stable prices because they invest in R&D and supply chain efficiency. You run a neighborhood business built on returning, long-term clients. You need brands that offer stable quality, reasonable pricing, and don’t randomly announce price hikes every few months.

With 22 years in the salon supply industry, my first job is to filter out heavily marked-up products for my clients. My rule is simple: The quality must justify the price, and the price must be fair to your customers.

My Philosophy: Brands have no borders. A good brand is one that helps you make a profit, solves your customers’ hair problems, and offers high ROI without cutting corners!

Smart salon owners never restrict themselves to just one brand. They know how to Mix & Match:

• International Brands: Keep a few for “prestige” to elevate your salon’s image, but don’t tie up all your cash flow in them.
• High-Value Imported Brands: Use these for high-volume, fast-moving services (like Rebonding creams or basic color dyes) to drastically lower your operational costs.
• Premium Local Brands (e.g., Miteo): Use these for exclusive, anti-price-comparison services, scalp treatments, and targeting the Halal/Tudung market. Because customers can’t compare these prices online, 100% of the profit margin stays safely in your pocket!

Win customer trust on the front end, and use Group Buying on the back end to slash your product costs. That is the ultimate secret to keeping your salon’s cash flow healthy!

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