In recent years, China's labor market is experiencing trends of population aging and a decrease in the workforce, posing serious challenges to the supply chain. This is also causing profound effects on the
human hair extension supply chain.
It is observed that the shortage of labor primarily affects the lower-end market.
Because of its low technical threshold, one can shift the supply chain to some neighbouring countries of China where owns sufficient cheap labors. This kind of changing may restrict the growth of the lower-end market's production capacity and introduces certain uncertainties to the stability of the relative human hair extension supply chain .
While the up side of the coin is that, this kind of changing is offering great opportunities of restructuring and upgrading for Chinese
human hair industry.
China's leading position in the human hair extension supply chain is attributed to its unique technologies and highly
skilled workforce. Chinese technical workers undergo rigorous training and education, inheriting extensive experience and skills acquired in decades of practice to produce high-quality human hair products that meet global standards. They are skilled in the latest hair extension techniques and processes, pursuing technical invention and renovation with non stop to cater to the diverse and changing demands of customers. Moreover, in recent years, the government and businesses are increasing investments in skills training and education to cultivate more skilled workers and meet the market demand, promoting the stable development and upgrading of the supply chain.
In conclusion, the impact of China's labor shortage on the human hair extension supply chain is mainly concentrated in the lower-end market, while the higher-end market which relies less on labors while more on advanced production technologies and innovation, will experience relatively lesser effects. Through technological innovation and talent cultivation efforts, China is able to maintain its competitive advantage and leading position in the human hair extension supply chain.