July 20, 2004

By Sbu Mpungose

Johannesburg - Black is beautiful, and the business of black hair is big.

Marketing research in the hair industry is scarce, but its estimated worth is between R700 million and R1 billion.

No formal research has been conducted locally, but participants in the industry agree that the ethnic hair market is huge and growing.

The market is roughly split into two categories: wet and dry hair. Products available in the wet hair category are chemical products, such as hair relaxers and straighteners, and after-care products, such as mosturisers.

The dry hair market covers hair extensions, available in wigs, weaves and hair pieces.

Discom, a huge seller of ethnic hair products, enjoys about 12 percent of the market.

Grant Heynes, Discom's head of cosmetic and toiletries merchandise, said hair extension was a popular trend among black women. Black women had more disposable income now and, unlike their white sisters, they preferred a new look every three weeks, he said.

Hair extensions could cost anything from R5 a pack to R1 000. Quality and the materials used in the hair extension determined the price, with human hair being the most costly.

Although there was a high demand for hair extension products, this would never exceed chemical products, which made up 75 percent of sales in the industry. The rest was attributed to hair dyes and shampoo.

The big guns producing chemical products are L'Oreal-owned Carsons, Lever Ponds, Black Like Me and Revlon's Colomer.

No clear data are available on the value of imported hair extension products.

South Africa is dominated by hair extensions products from South Korea, Japan and China.

Frika and Kinky are the only two major local players in the highly competitive industry.

Frika, the younger of the two companies, started in 1997. Owner Garren Reynolds said the local market was exciting and encouraging, with more women turning to hair extensions.
 
Frika's main clients were independent and informal dealers.

The company also had four chain stores in KwaZulu-Natal and Western Cape and was looking to expand into Gauteng.

Kinky started out in the business of hair in 1971, when the market was relatively small. The company had 10 retail stores and a few wholesalers.

Venus Industry, the owner of Nina hair extensions, was one of the largest multinational companies to manufacture extensions.

The South Korean-based company did business in other African countries, including Nigeria, Togo and Cameroon.

Krish Reddy, the production and sales manager for Venus Industry, said the company imported 90 percent of its raw material from South Korea and Japan, and the extensions were made locally.

He said its factory was based in Durban, and there were about 18 other manufacturers belonging to other companies.

"There are a lot of new guys in this industry; so many people have come in the past month," Reddy said.

The secondary market, largely the informal sector, is comprised of hairdressing salons and self-employed hairdressers.

Sonto Khoba, the president of the Afro Hairdressing and Beauty Employers' Association of SA, said a number of salons were facing stiff competition from hair hawkers, who operated in the streets and could offer customers lower prices.

Braiding in hairdressing salons starts at R120 and goes up to R1 000, including hair extensions.

This is pricey compared with the R30 to R300 hawkers charge.

Khoba said that hawkers came mainly from outside the country and were highly skilled and creative.

She said that most women were turning to braiding their hair because they wanted a more African look.