Once hailed as the crown jewel of China’s aesthetic medicine sector, the country’s hair transplant industry is now facing a critical turning point. What was once projected to become a RMB 100 billion (USD 14 billion) market has hit headwinds—marked by declining consumer trust, price wars, uneven service quality, and a growing number of disputes after procedures.
With over 3,000 providers now operating across China—including major chains, public hospitals, and independent clinics—competition has driven prices down sharply. Procedures that once cost RMB 20,000–30,000 are now being sold as unlimited graft packages for just a few thousand yuan. While appealing on the surface, these pricing tactics often compromise professional standards and blur the line between healthcare and marketing.
“Flat-rate pricing simplifies the transaction but obscures the true value of medical care,” said Cui Shaofang, Executive Director at hair solutions firm Barley, in an interview with 36Kr. “We’ve moved back to per-follicle pricing to reinforce medical integrity and transparency.”
A Return to Medical Foundations
Barley’s updated model ties every yuan spent directly to the number of hair follicles transplanted—offering patients clear, diagnosis-driven treatment plans. This aligns with a growing demand for precision care and supports a more sustainable approach as hair transplant recovery becomes a more important consideration for long-term success.
Rather than chasing volume through aggressive marketing, Barley has also diversified its services. Beyond standard transplants, the company now offers solutions such as female hairline reshaping, eyebrow and facial hair transplants, and chronic hair loss management—helping them meet a broader range of patient needs.
The Rise and Fall of Consumer Hair Products
Meanwhile, the once-booming market for consumer hair care products—especially shampoos and scalp care treatments—has softened. With post-pandemic budget consciousness rising, consumers are prioritizing essential therapies over luxury grooming items.
In response, Barley launched a sub-brand, Xiaomai, which differs from conventional products by operating under a medical license. Xiaomai focuses on therapeutic treatments for hair retention and regrowth. Unlike retail-first brands, Xiaomai’s model blends retail know-how with medical-grade services—positioning itself as a semi-essential provider in the hair restoration ecosystem.
The brand is expanding cautiously, aiming to open 50 locations this year. Its pilot clinic in Shenzhen’s Nanshan district is already profitable.
Refocusing Growth with Clinical Integrity
Barley currently operates 40 clinics worldwide, including one in Chicago, with domestic expansion capped at 50 locations to avoid oversaturation. Roughly 65–70% of its revenue still comes from traditional hair transplant procedures. However, the company is resisting industry-wide pricing pressure to preserve clinical standards.
“Hair transplant cost shouldn’t be a race to the bottom,” Cui emphasized. “We’re not raising prices arbitrarily—but we also refuse to sacrifice quality to stay competitive.”
Barley’s strategy highlights a broader industry shift: one that balances affordability with transparency, and growth with sustainability. In an era where many patients undergo just one hair transplant in their lifetime, long-term trust and visible hair transplant before and after results are becoming more valuable than quick wins.
As China’s early boom fades, what remains is an industry being reshaped by medical professionalism, patient education, and a deeper understanding of what lasting hair restoration truly means.
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