Founded in 1985 in Taiwan, the company that would go on to become Shaan Honq came out of the passion of its founder, Charlie Tsai, who started out by importing Japanese combs and scissors into Taiwan. From a young age, he had a deep appreciation for quality products and frequently visited bookstores to gather information on a wide range of topics. His love for the finer things in life was coupled with a thirst for knowledge. This combination laid the foundation for his keen eye for beauty. Although he began by selling products from other brands, Charlie gradually started dreaming of the tricky task of creating his own product range from scratch. Finally, in 1989, using all his savings, he was able to purchase a small factory, marking the beginning of what would later become Shaan Honq. This was the precursor to Tsai Enterprise, which officially launched in 1989, focusing on the production of shampoos and perm solutions.
General Manager, Artemis Tsai, has been talking to Estetica Export.
What has been the key to your business success over the years?
“Looking back, I’d say the ability to gather and act on sharp market insights was key to our business success. Our first breakthrough came with the introduction of a hair cuticle treatment, a precursor to today’s oil-based hair care products. This product was a game-changer and is still a best-seller in Vietnam and many other countries. This marked Shaan Honq’s first major achievement, followed by the success of our leave-in creams and other hair care products, with brands like Chihtsai and SH-RD becoming top picks on platforms like Shopee.
The second phase of our growth came with the rise of the perm era. At the time, most women in Taiwan had straight hair, so perming became the go-to method for those looking to change their style. Shaan Honq’s perm solutions were well-received worldwide, giving hairstylists the tools to achieve excellent results, further establishing our reputation.
Our third milestone was our entry into the shampoo and scalp care market, starting around 1987. We developed a range of shampoos, each with specific functions targeting issues like dandruff, hair loss, dry, oily, and sensitive scalps. This expanded into a comprehensive scalp care line, further solidifying our position in the industry.
As market demands shifted towards more diverse styling products, we met the need with a wide range of products tailored to different curl types and styling needs. This was our fourth major accomplishment.
Finally, our fifth achievement was becoming self-sufficient in manufacturing, without relying on outsourcing. We built our own research and development Laboratory, visual design, sales, and educator teams. These four pillars were crucial in helping Shaan Honq maintain a 35% market share in Taiwan during our first 20 years, and even today, in 2024, we still hold around 30% of the market—a testament to the strength of our in-house operations”.
How important is Export for your company?
“I believe that a truly great product needs to be experienced by more markets and consumers. Even though we’re based in Taiwan, with a population of just over 20 million, we are confident that we can create outstanding products.
Thanks to the dedication of our laboratory, sales team, and other departments, we began expanding into international markets in 1992. Our first exports were to Cyprus and Belgium, which was a significant achievement for an Asian brand. Successfully entering these Western markets boosted our confidence immensely.
Today, we have a presence in around 43 countries, including major cosmetics markets like South Korea, Japan, the United States, and Brazil, where we have established important export operations”.
How is your sales network organized?
“I believe that for a sales network to be stable, it comes down to sharing profits and providing 100% support. The reason we have a 30% market share in Taiwan is entirely due to our self-operated sales team and distribution channels, where our salespeople also enjoy a significant share of the profits.
When it comes to our international sales network, the key to getting distributors to exclusively carry our Chihtsai products lies in treating them as our own branches and partners. We provide comprehensive training, sales experience, and social media resources. When your clients start to rely on you, that’s when you’ve truly succeeded”.
From your point of view how is hair & beauty doing in international markets?
“When it comes to the global beauty and hair industry, I believe it has undergone significant changes and now needs to be tailored to each country’s unique context. With the rise of personal branding and shifting life priorities, the order of what matters most has been reshuffled. While beauty and hair care will never be abandoned, the hair market, in particular, will see a greater focus on scalp care, DIY solutions, and the demand for precision in styling, straightening, and colouring, along with higher expectations for quality.
The beauty market is evolving differently, with an increasing emphasis on services like microblading and hair growth restoration. I believe that globally, the hair restoration market will continue to be a tug-of-war between beauty and hair care, especially in more open markets, excluding China’s more closed landscape. This dynamic will depend heavily on the skill level of professionals in the industry. Additionally, doctors will likely enter the hair restoration market, further expanding the industry’s scope”.
How do you think it will evolve in the near future?
“Earlier, I mentioned that the success of the beauty and hair industry depends on the professionalism and depth of knowledge of those in the field. If everyone in the industry reaches a high level of expertise, I believe the beauty sector will gradually encroach upon all other markets.
The lack of attention from hairstylists toward hair restoration could lead to more people entering that field, which, in turn, could influence consumers’ perceptions of hairstylists, beauty professionals, and even medical practitioners. These three areas—hair care, beauty, and medicine—will be in a tug-of-war, determining which direction consumers will ultimately lean towards.
Moreover, many major international brands are shifting their focus away from haircare brands and heavily investing in hair restoration. This is a positive development, but we must not forget our roots in both beauty and haircare. One is a visible art, and the other is more behind-the-scenes. Both areas are critical, and where companies choose to invest will have significant implications.
If the focus shifts too heavily toward hair restoration, it will become an increasingly competitive market. On the other hand, in the realm of visible beauty, I believe that major international brands will continue to develop, but they will face growing competition from independent designers. Many celebrities are also entering this market, further diversifying it. As a result, the professional salon market will face challenges from personal branding, designer-driven businesses, and celebrity-owned ventures, which could take away a substantial portion of the market”.
What does it take for a brand to be successful in Taiwan?
“In my primary living area, Taiwan, the small size of the market makes it relatively easy to establish a brand. Success can be achieved through personal connections, marketing channels, or social media exposure. I believe that in such a small market like Taiwan, it’s quite easy for a brand to gain traction.
However, brand recognition doesn’t necessarily guarantee sustained sales. What truly matters are the professionalism of the team, the quality of service and support, and the ability to differentiate sales channels. Most importantly, the key to success lies in solving the problems that consumers care about.
Consumers might buy something because of an advertisement or because of their relationship with you, but they will abandon it if it doesn’t solve their problem. That’s why I personally believe that quality is the most crucial factor in retaining customers. This is also why I firmly believe that products should not be outsourced for market supply. The world is already oversaturated—there’s too much of everything. But truly good products are becoming increasingly rare”.
Do you believe in trade exhibitions to develop your business?
“Basically, I think it’s about a 50/50 split, depending on the country. For most industries, especially in the last 10 to 15 years, this generation has relied heavily on trade shows to discover new information and products. Emerging markets still need trade shows to connect with the right people.
However, in mature markets, I personally feel that trade shows are no longer as effective for those looking to find brands or customers. The demand for products in these countries isn’t as urgent. But for developing countries or markets that are oversaturated with products, the situation might be different”.
How important is e-Commerce and online activity for you?
“I believe e-commerce has become a crucial channel and an important part of spreading brand awareness. Online activities are designed to attract attention in the digital space. This generation has a significant gap, and addressing this gap is crucial. Therefore, providing sufficient aesthetic appeal and professional knowledge in e-commerce is very important.
Social media amplification also indirectly supports brand awareness and the correct use of products. This aspect was already part of company budgets over a decade ago. To reiterate, from R&D and manufacturing to brand development through professional teams, service information, and hairdressing education, along with design and visual elements, and now including social media personnel—each of these areas has grown in importance and proportion with each generation”.
How important is education?
“With advancements in technology like ChatGPT, Google Translate, and search engines, traditional knowledge has become less valuable. However, education remains essential, although its demand and direction have shifted significantly. In industries like hairdressing and beauty, consumers can quickly find information online.
Education cannot be fully replaced by search engines; it relies on experience and skill that go beyond what can be learned from books. The personal touch and unique aesthetic perspectives are crucial for future educators in these fields. The effectiveness of education will depend on how distinctive and prominent individual educators’ personal brands are. If these educators lack personalization and clarity in their approach, their education might not be as well-received”.
What are your plans for the future?
“I believe that Shaan Honq’s global expansion will never stop until we’ve achieved full visibility and partnerships in every country around the world. We are exploring various ways to collaborate with agents and implement different strategies.
Our plan for the next decade is to export our entire store concept. We aim to combine products with hair care and technical services in one location, offering additional services like microblading and beauty treatments. Providing a complete, professional hair care experience is the primary direction for our Chihtsai and PureScalp brands.
Since starting in China in 2018, we’ve also opened stores in Brazil and Mexico. We hope to leverage Estetica for coverage. Our goal is to establish Chihtsai hair care salons and PureScalp Hair Growth Scalp Center through our professional teams, so that anyone seeking solutions for their hair and scalp issues can receive truly effective and healthy treatments”.
