Issues with due diligence - hair extension manufacturer

[KCA]

Hello All,

I hope this message finds you all well.

I wanted to see if any of you could help. I want to set up a hair extension company. I have registered the company, done the branding, researched my target market etc.

I am ready to sample products. However I am struggling with my due diligence. I have an extensive due diligence process due to the unregulated nature of the hair extension business. I have broken down my due diligence into 3 catergoeries: business (checking they are legitimate businesses), logistics (how much stick they hold, how long it would take to get to me), and hair (origin, quality etc). However it seems to be that even when manufacturers answer these questions they are VERY vague, or simply do not answer at all (especially pertaining to the business aspects of the business such as the names of owners, business licenses, tax returns etc).

I want to run a transparent business, this is not a "get rich quick" scheme. I want to work with honest professional manufacturers, and it is proving almost impossible. I partly believe this is due to the fact that not only is the hair industry unregulated, but manufacturers are use to people buying hair no questions asked.

Would you have any suggestions on how I can move forward? This is a major blocker for me, however I refuse to move forward with sampling until I can find a professional manufacturer.

Help is greatly appreciated.

Thank you in advance.

 

[MOIC]

Hair extensions is a very difficult product to get honest and reliable information from manufacturers, as you have found out.

This is especially true in China, where manufacturers want to be seen to be competitive, so offer prices for Indian Remy hair (for example) when in fact its a blend.

Depending on the country you are sourcing from, you have to request product samples for the exact hair type (Indian Remy is probably the best, then Brazilian Remy) and check each sample as well as ensuring that any orders will be from the same hair type. This can only be done by having someone who understands about hair extensions to make a physical visit to the factory and inspect the production.

There are also many shade varieties and this will differ for each factory, even if they give the same shade reference.

If you are looking to source 2-piece extensions, both lengths have to be checked as well as total extension weights.

Clips is another issue which has to be checked for the type, size, positioning, spacing and stitching, as this is a weak area for quality control defects. The clips should be stitched on cotton lace, or another natural material.

If you want to discuss your product to be sourced, feel free to contact me using the website link in my signature below.

 

[The Byre]

I have broken down my due diligence into 3 categories: business (checking they are legitimate businesses), logistics (how much stock they hold, how long it would take to get to me), and hair (origin, quality etc).

You missed out the trading and credit record of the owners and directors! That is the FIRST thing we check. One set of owners, one company and a long trading record sp[eaks volumes.

Seeing a record of owners and directors who open and close many companies and have a history of failed companies also speaks volumes!

 

[CHUKTC]

I agree with the above posts. Due dilligence on a company is relatively straight forward the real problem in this business as the very high level of fraud. The only way to get through it is a) get samples (and be prepared to try a number of suppliers to get the correct one), B) visit the factory or get someone to visit it for you and look at the materials they are using. Don't expect to get a high quality piece for a low price - it just doesn't happen. We have helped a number of customers source suppliers - and as said above you really need to know your stuff.
If you can spare the time I would recommend you visit the China International Hair Fair in Guangzhou at the end of August (26-28). Being held in our home town we know it well and have helped a number of customers to obtain products that way.