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White claimed that distributors told her that her products were no longer in demand as an excuse to turn away her products in favor of knock-offs produced by Asian companies.ĭevin Robinson, an economics professor and author of “ How to Become a Successful Beauty Supply Store Owner”, organized a boycott last November against Non- Black Owned Beauty Supply stores. Ranin interviewed Lucky White, the owner of Kizure Ironworks which specializes in making styling tools like curling irons, for his 2006 documentary. Then we are talking about money in the community.”Īccording Ranin, there are only four central distributors serving beauty supply stores in the country and these Korean owned distributors discriminate against Black store owners in order to maintain their monopoly in the market.
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“‘I mean, if you ask me, ‘what is your vision for the future?’” Well, right away, it’s a 100 black-owned stores opening up right next to Korean stores – a boycott until the Korean stores accept at least 20% black-owned manufactured products. “It’s really about allowing black manufacturers to get inside the distribution channel,” he said. Ranen was inspired to make his documentary because of what he saw as the injustice of unfair business practices. Between manufacturing, distributing and selling these hair care products, Korean entrepreneurs appear to control all major components. Today, there are over 9,000 Korean-owned beauty supply stores serving a billion dollar market for Black hair. “If one is running a business so well, then another Korean will open up a similar business very quickly.” “Korean immigrants are more concerned with peer competition,” she said. Kyeyoung Park, associate professor of anthropology and Asian American Studies at UCLA, competition also played a role in the proliferation. Since then, it’s been a chain reaction as one store beget another family members and employees of one store owner duplicated the business.
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The business structure helped set up many Korean entrepreneurs in the sale of wigs and over the past five decades, wig stores have evolved to become full fledged beauty supply stores where hair for weaves and extensions represent the top selling products. “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.
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“ 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. “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. The wig business was doing so well, especially amongst African-American consumers that the Korean Wig Merchants pushed to corner the market. Between 19, his company exported $100 million worth of wigs. Founder Yung Ho Chang, conceived the idea of the company while working as the vice-director of Korean Trade Promotion Corporation in the U.S. According to the book “ On My Own: Korean Businesses and Race Relations in America”, the rise of the YH Trade wig manufacturing company was significant. The wig business and the explosion of the wig business in South Korea in the 1960s is instrumental to understanding the Korean ownership of beauty supply stores. But what can explain the seemingly random attraction of Black hair to Korean entrepreneurs? Is it that they love Black hair so much? Was there a plan amongst the first wave of Korean immigrants to hone in on the black hair care industry and dominate the beauty supply store market? From a business perspective, it was no coincidence.