In almost any beauty store you visit in the United States, you will find that Koreans own, distribute, and manufacture black hair, hair care products, and black hair care accessories. From a business perspective this is very unique that a staggering percentage of Koreans own and control and industry while African Americans overwhelmingly consume a product.From a business perspective, this economic imbalance is no coincidence.  

 

According to the book "On My Own: Korean Businesses and Race Relations in America", the rise of the YH Trade wig manufacturing company was a start. Founder Yung Ho Chang, formed the company while working as the vice-director of Korean Trade Promotion Corporation in the U.S. Between 1965 and 1978, his company exported $100 million worth of wigs.The wig business did well mainly in amongst African-American consumers. This caused Korean Wig Merchants to begin seeking to push and dominate the market.

 

"In 1965, the Korean Wig merchants joined together and convinced the Korean government to outlaw the export of raw hair," said Aron Ranen, a filmmaker who has documented the marginalization of African-American entrepreneurs in the hair care industry in the film Black Hair. "[This ban] made it so that one can only buy the pre-made wigs and extensions." In other words, Korean hair could only be manufactured in Korea. "Six months later, the United States government created a ban on any wig that contains hair from China," effectively putting South Korea in prime position to exploit the market.

 

The favorable laws allowed many Korean entrepreneurs in the sale of wigs to prosper over the past five decades. Wig stores overtime eventually evolved to become beauty supply stores where hair for weaves and extensions represent their top selling products.

 

The Indian Hair Report shows you how you can stay competitive!