"Dreaming of Bodyfriend in Hair Salons"... Aust Launches 'Affordable Price' Massage Shampoo Stand
Essential Beauty Salon Item 'Shampoo Station' with Electric Function Priced 1.5 to 2.5 Million KRW
'Massage Function' Domestic Shampoo Station Developed... Early 2 Million KRW Range
"Capturing Both Price and Quality... Market Expansion Possible"
[Asia Economy Reporter Junhyung Lee] "The perception of massage shampoo stations just hasn't spread yet. We will pioneer the massage device market for beauty salons, just like Bodyfriend created the massage market."
The shampoo station is an essential item in beauty salons. It is among the expensive equipment needed when starting a salon. Shampoo stations used in salons are generally either manual or electric versions. Looking at market prices, manual shampoo stations range from 500,000 to 1,500,000 KRW, while electric shampoo stations range from 1,500,000 to 2,500,000 KRW.
The time spent at the shampoo station is not long, which is why its performance is often considered not very important. However, CEO Jeong Eoncheon of Aust thought differently. Having spent a long time in China experiencing local salon services, he explained, "Massage services are common in Chinese salons," and "Domestic salon services are often not reasonable for their price." According to CEO Jeong, all products used by customers in salons, including shampoo stations, are included in the service cost.
He saw the potential of massage shampoo stations through Bodyfriend, a massage chair company. Bodyfriend pioneered the domestic market, which was barren for home massage devices, growing into a company with annual sales of 550 billion KRW. CEO Jeong said, "Until a few years ago, most people did not consider having a massage chair at home," adding, "Although the perception of receiving massages at salons is still weak, I believe we can create a new market like Bodyfriend did."
Massage balls inside the Aust shampoo basin. Jeong Eoncheon, CEO of Aust, said, "The core of the massage device is the movement path of the massage balls," adding, "We also developed the movement path ourselves, considering the time spent at the shampoo basin and ergonomics."
[Photo by Lee Junhyung]
Aust added massage functionality to shampoo stations but lowered the price. Aust’s shampoo stations are priced in the low 2 million KRW range, cheaper than electric shampoo stations. The reason for launching massage shampoo stations at this price is simple: to rapidly spread the adoption of massage shampoo stations by emphasizing a reasonable price as a competitive advantage. CEO Jeong judged that increasing the adoption rate of massage shampoo stations was more important than raising operating profit margins by leaving a high margin.
He also believed that the existing massage shampoo stations, which have ‘polar opposite’ price ranges, hindered widespread adoption. Currently, massage shampoo stations are divided between Japanese and Chinese products. Japanese shampoo stations have good quality but are expensive, making them burdensome for general salons. Chinese shampoo stations are priced similarly to regular shampoo stations but lack safety certifications (KC) and pose accident risks, with after-sales service (A/S) also difficult. CEO Jeong said, "Aust has captured both price and quality," adding, "We have obtained domestic certification as well as the international standard CB certification, and the European CE certification will be issued within this month."
The ability to maintain stable quality while lowering prices was thanks to CEO Jeong’s extensive network in China. Aust develops and designs products in Korea but entrusts production to Chinese factories through an Original Equipment Manufacturer (OEM) method. CEO Jeong worked in the Chinese manufacturing sector for 16 years, building networks with various companies. This network was the background that allowed them to offer products at a price lower than the R&D costs.
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The shampoo station market size is not small. According to the ‘Salon Status and Market Environment Analysis’ report released last year by KB Financial Group Management Research Institute, there are about 110,000 beauty salons nationwide. The number of salons has steadily increased since the 2010s. CEO Jeong said, "Even if we assume one electric shampoo station per salon, it is a market worth several hundred billion KRW," and predicted, "If the adoption of massage shampoo stations accelerates and premium product lines are actively launched, it could grow into a trillion KRW market."
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