Hairtech Japan's ¥520M hair cosmetics business lost 62% as salon culture declined

What happened

Why it happened

• Revenue fell from ¥520M to ¥200M, a 62% decline — the charismatic beauty salon boom ended with the Abenomics recession, reducing demand for professional hair products.
• COVID-19 sharply reduced salon foot traffic — hair color and treatment products sold through salons lost their primary distribution channel.
• Increased inventory and loan burdens accumulated as sales declined — the company kept buying raw materials for orders that never came.
• Founded in 1986 with ¥51M capital, Hairtech Japan depended entirely on salon distribution — when salons had fewer customers, the company had no direct-to-consumer channel.
• The hair cosmetics market shifted toward mass-market drugstore brands — professional salon-only products lost relevance as consumers traded down.

Aftermath

Hairtech Japan Co., Ltd. filed for self-bankruptcy on July 19, 2024, with approximately ¥350 million in liabilities. Founded February 1986 in Sakai City, Osaka with ¥51 million capital, the company manufactured and sold hair cosmetics including color treatments and shampoos to beauty salons. Peak revenue of ¥520 million fell to ¥200 million (FY March 2022), a 62% decline, as the charismatic salon boom ended and COVID-19 reduced salon foot traffic.