One of my greatest admiration of the United States of America is its private enterprise system. The private enterprise system is an economic system that rewards an individual for her ability to perceive a need and service that need by creating a demand for her prospective consumers. Much credit goes to Adam Smith, the father of Capitalism. Through his efforts today, our economy is regulated by the “invisible hand” of competition. All things considered, the private enterprise system in my opinion is color blind.
During the late 19th century there were urgent needs for more modern ways of caring for the African American hair. During those days, Blacks used soap, goose fat and heavy oils to straighten their hair. Those chemical straighteners often damaged the scalp and the hair follicles.
Out of necessities and needs; African American entrepreneurs such as Annie Turnbo Malone manufactured a line of
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One of Ms. Malone’s former employees, Madame C.J. Walker, eventually founded her own company with similar beauty products and distribution system. Today Madam Walker is largely credited for originating the Black hair and beauty business, a feat that some still argues today, rightly belongs to Annie Malone. Madame C.J. Walker sold her own version of "Wonderful Hair Straightener," which Malone called a fraudulent imitation. As a result, Malone trademarked Poro, a new name for her product and merchandising systems in 1906.
Poro is a Liberian organization dedicated to disciplining and enhancing the body spiritually and physically. The Poro Society is one of the most sacred organizations among indigenous Liberian males. The Sande society is the female equivalent of the Poro society.
After black hair trendsetters such as Annie Malone and Madame C.J. Walker exited the hair product stage, contributors such as Marjorie Joyner and many others Blacks or African American entrepreneurs put a tiny dent in the hair industry in terms of revolutionizing the hair care and cosmetics industry.
Like many others, the Koreans saw a vacuum, an opportunity and a need for Black hair products and capitalized on the American private enterprise concept. Unfortunately for the Koreans, they are been met with resentments, criticisms, personal attacks, and in some reported cases; the burning of their stores. From every indication, they appeared to be victims of their entrepreneurial sagacity and managerial acumen.
In his recent investigative and much talk about documentary, “Black Hair, An Incendiary Expose,” Mr. Aron Ranen, a white male professor and filmmaker reveled that the Koreans have come to control and dominate virtually every aspect of the multi-billion dollar black hair industry. In his documentary, Ranen reviled how the Koreans are employing tactics to put African American merchants and wholesalers out of business.
During a recent interview, Ranen was asked, “Why did a white guy like you develop an interest in the Black hair care industry?” His reply was, “I made a TV pilot with an African-American host, comedian Chey Bell who also happens to cut hair. She told me about all the dollars black women spend on their hair. I was amazed, and decided to make a fun film about that. But when I began shooting in Oakland at a hair expo, I met some black folks who told me of the Korean takeover.”
Ranen was also asked if it was a form of reverse-racism to suggest that black consumers should only buy from black businesses and he replied by adding, “Just think, it’s a business in which 99% of the customers are black, and 99% of the owners are Korean… That just seems a little off…don’t you think?
In preparation for this article, I visited a weave store on 47th Street and Indiana Avenue in Chicago and asked Mr. Kim, a Korean weave merchant to give his opinion on this story. Mr. Kim commented by saying, “Can I say that black people dominate the NBA so we should intentionally reduce the number of blacks in the NBA?”
Blog Off:
Would you fault the Koreans for dominating the African American hair industry or are they victims of their entrepreneurial sagacity and managerial acumen?
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It seems as if Aron Ranen, the white filmmaker has a vested interest in the black hair business.
There are thousands of products controlled or dominated by the whites. Why isn’t he making a documentary on one of them?
The only thing I hear about in black forms and websites is how the Asians robbed or took control of the black hair industry. They did not take control they can not make a beautician buy their products. The only reason a black beautician would buy an Asian, Caucasian or Mexican product is it’s of the same quality and cheaper. Remember business is about making as much money as possible in the shortest amount of time. The consumer/ customer are interested in purchasing a product or a service at the lowest and best price. When you put these elements together a black beautician is forced to buy products at the lowest price possible to stay in competition with the operator next to her. If one beautician is charging $135.00 for the same hair style that the chair next to them is charging $95 for, who do you think that customer is going to next week. Business only has one color green and green business means you earn the most money by what ever means possible. The price of labor in the U.S. is to high, 10 to 15 dollars per hour for a black hair products manufactures to produce their product and stay in competition with the Asians. The Asians are paying a labor rate of 3 to 5 dollar per hour, at that labor rate U.S. Black, White, Green or Gray businesses can not compete with Asian hair products. If the black manufactures want to be competitive they will have to go to a 3rd world country to have their products manufactured. If Ford, GM, General Electric, Microsoft and hundreds of others moved their base manufacturing to a 3rd world country I say this to black hair manufactures it’s time to get out of Dodge and go to a another production strategy. I promise you the Koreans are more than likely having a lot of their products manufactured in China and Black manufactures can do the same thing. I have a friend that goes to China and buys laptop computers 10,000 at a time he brings them in and sells $1200 brand new units for $425 and he's black and he sells them from a home based business. Big businesses is not black, white or yellow its green and the color green sees no other color. If a black beautician can buy Asian products at a lower price and by doing so earn $40,000 more a year and that’s the difference between riding in a Benz to work rather than the bus. If that's the case I'm getting in the Benz. If over a span of five years I could earn an extra $40.000 a year and you multiply that times 5 years it adds up to $200,000. That’s the difference between living in a 4 room hut and a 4 bedroom house. Do you see the picture?
Back to the statement that “Asians took control of the black hair products business” that’s just an excuses from black manufactures and suppliers because they don’t know how or can’t produce their products at the same price as the Asians. Here is who really took control of the industry. The independent black beauticians took advantage of the Asians low price products so they could ride in a Benz and live in a 4 bedroom house. Here’s my message to Black Business Owners. Re-think, re-strategize and re-plan your business concept and quit crying about the Asians. (By the way I’m a black business opportunist with green blood, deep green)
What is most disappointing, is why we don't educate our people on how the Koreans became such a force in the hair care industry. Most don't know that many of the Koreans were funded by the US Government with grant money. Money that they used to buy into our neighborhoods.
Economic power, is the power of change. Since we don't own it, we can never change it. If we want to change things for good, we need to buy back the " Hood ", by using the same tool that the Koreans used, UNITY
Please read my book " From Ghetto To Global " @ Barnes&Nobles.com
This phenomenon is another perfect example of what happens when we FAIL… to unite and support our own endeavors. This is why the majority of blacks are always begging for a job instead of providing meaningful and rewarding careers… Make causes like this apart of your New Year resolution!!! NC