CHINA FASHION BUSINESS

▼The following discussion and summary from the Coldy Fashion Circle address industry-related issues. These insights are the product of collective wisdom and do not represent individual opinions. The aim is to benefit industry professionals.

Personal Experience on the Pros and Cons of Wearable Nails

1. Are Wearable Nails Really Cheaper Than Traditional Nail Art?

In recent years, the wearable nails industry has rapidly risen in the beauty and cosmetics field. This industry exhibits clear seasonal characteristics but has strong growth momentum. Its primary feature is the low entry threshold, with production hubs like Donghai County in Jiangsu leading many mothers to join the workforce and entrepreneurship.

A unique calculation has been made for the cost of traditional nail art: each person’s nail area is about 1 square centimeter, and with ten fingers, the total area is 10 square centimeters. In offline nail salons, a basic single-color nail art session typically costs around 120 RMB, which, when calculated by area, is equivalent to 120,000 RMB per square meter, even exceeding the price of real estate in some first-tier cities. While this calculation may seem playful, it indeed reflects consumer resistance to the high prices of traditional nail art.

Wearable nails are much more affordable. The cheapest basic models on the market are priced at 9.9 RMB, with mainstream prices ranging from 19.9 RMB to 50 RMB. Even some high-end designs struggle to gain consumer approval. These higher-priced products are often used as tools for attracting customers, with low actual sales.

In physical stores, many accessory shops have started to introduce wearable nail lines. Merchants typically provide size comparison charts to help customers choose the right size after trying them on. Some stores also use promotional strategies like “buy one, get one free,” indicating a high-profit margin in this category.

Compared to traditional nail art, wearable nails offer advantages such as being environmentally friendly, not damaging the nails, and preventing infections. They also do not require waiting in line and can be changed or removed at any time. This convenience makes the repurchase rate of wearable nails far exceed that of regular accessories. On platforms like Xiaohongshu, many enthusiasts accumulate dozens or even hundreds of different styles.

2. Matching Sizes and Nail Shapes of Wearable Nails

When purchasing wearable nails, it is crucial to pay attention to the matching of size and nail shape. Wearable nails typically offer 3-4 different sizes, with specific measurement data for reference. There is also a wide range of nail shape options, including square, oval, short, medium, and long oval, varying based on nail length and tip shape.

In terms of user experience, achieving a perfect fit is a common technical issue. Some merchants suggest sanding the nails to improve the fit, but some consumers are concerned that this might damage their nails, especially given that traditional nail art can make nails brittle. Therefore, some users choose glue with weaker adhesive strength, making it easier to change and remove the nails.

3. Wearable NailsWearable Nails and Hygiene Issues

In 2024, reports began to appear online about infections with Pseudomonas aeruginosa or empty nails after manicure procedures. This may be related to improper sterilization of salon tools, as simply wiping with alcohol is not sufficient to fully disinfect. Meanwhile, the virus on the cuticle is highly contagious, and using wearable nails without damaging the nail’s protective layer is relatively safer.

There are some details to consider when using wearable nails: avoid wearing them while washing hair or bathing to prevent prolonged moisture buildup between the wearable nails and the natural nails, which could cause bacterial infections. Although some merchants claim that their products last 7-14 days, few people will wear them for that long, as most will change to a new style due to aesthetic fatigue.

Currently, although competition in the wearable nails market is fierce, demand continues to grow. Some live stream sellers have even set records for daily profits of 100,000 RMB. These success stories are attracting more entrepreneurs. However, industry insiders caution that blindly following trends may lead to failure, and individual businesses need careful and detailed management and service.

In terms of product innovation, there were previous products like nail stickers, which gained attention in Li Jiaqi’s live stream. This shows that the nail art market has been exploring alternatives to traditional nail art, and the rise of wearable nails is the latest result of this exploration.

Current Issues in the Wearable Nails Industry

1. Production Efficiency of Machine-Made vs. Handcrafted Nails

The production process of wearable nails can be divided into machine-made nails and handcrafted nails. Machine-made nails are created using professional equipment, and in the early stages, only pure colors and cat-eye effects could be produced. Now, even French nails and simple patterns can be made with high production efficiency, stable product quality, and the ability to meet most consumers’ daily needs.

2. Pain Points in the Wearable Nails Consumer Market

Handcrafted nails continue the traditional nail art manufacturing process, but the real nails are replaced with resin nails. According to data from the “Re-beauty Nail” brand in 2023, each nail artist can complete 10-12 sets of nails per day. In Donghai County’s production base, professional workers can produce 30-50 sets of handmade wearable nails daily. However, handcrafted production has clear limitations: different decoration requirements directly affect the output, and manual labor leads to a higher defective rate compared to machine production.

Regarding after-sales issues, due to the affordable price of wearable nails and the fact that they are self-applied products, overall complaint rates are low. However, some consumers have unrealistic expectations due to e-commerce platform policies, such as “return only” services. Common problems include asking for a complete set to be sent when a single nail piece is lost or requesting a return after multiple trial uses due to the product being reusable. The most troublesome situation for merchants is when rejected return requests lead to complaints on platforms like Xiaohongshu and Weibo, often sparking a wave of resonating comments.

（RESOURCE：扬子晚报）

The problem of homogeneity in the wearable nails market is becoming increasingly prominent. Before the 2024 Spring Festival, the market was flooded with designs using traditional elements like lions, butterflies, and fireworks, with cat-eye designs appearing everywhere. However, the high-end market has started attempting differentiation, such as an artistic wearable nail inspired by the painting A Thousand Li of Rivers and Mountains from the Song Dynasty, priced at 15,999 RMB. While the artistic inspiration came from the Song Dynasty, the actual presentation aligns more with Qing Dynasty aesthetics.

Despite this, the industry still has a long way to go.

3. The Impact of Personalized Nail Art Demands on the Wearable Nails Industry

In terms of product customization, merchants have started paying attention to special needs groups. Although customizing products for consumers with larger nail arcs can be costly, it is technically feasible. Brands are actively developing new products for the summer of 2024, focusing on traditional Chinese and new Chinese styles, emphasizing fresh textures, and attempting to explore the market through differentiated designs.

For entrepreneurs wishing to enter the wearable nails industry, although market competition is fierce, there are still development opportunities through new marketing methods like influencer promotions and unmanned live-streaming. Some merchants plan to open unmanned live-streaming rooms specifically for wearable nails after the Lunar New Year, showing their continued optimism for this product category.

4. Cultural Heritage in Wearable Nails

In the field of design innovation, more and more nail products are incorporating traditional Chinese cultural elements. This trend reflects the growing demand for culturally enriched products among consumers and provides new ideas for the future development of the industry. Additionally, experienced merchants suggest that before entering the industry, entrepreneurs should conduct field research, such as visiting production bases in Donghai County, to better understand the market situation. This will help them better grasp industry dynamics and development opportunities.

Overall, while the entry threshold for the wearable nails industry is low, sustained development requires continuous improvements in production processes, product innovation, and marketing strategies.

Is the Wearable Nails Business a Good One?

1. How the Wearable Nails Business Started to “Involute” (Intensify)

The current situation in the wearable nails industry shows a characteristic where “more people are starting businesses than actually buying products.” Early on, some teams exaggerated the market prospects by selling courses, creating market hype before quickly exiting. The influx of many mothers has led to market fragmentation, and although the entry barriers appear low, the actual investment required is not insignificant.

Donghai County in Lianyungang, the largest production hub for wearable nails in China, faces significant industry weaknesses. Most of the nail technicians are mothers, and their aesthetic levels are generally insufficient. Talent capable of independently designing styles is rare. The low cost of imitation in the nail art industry means that similar styles can easily be copied offline using reference images from platforms like Xiaohongshu, leading to market homogenization.

In terms of sales channels, online advertising has not yielded satisfactory results, while offline physical stores are hesitant due to high investment costs. Some innovative companies have begun experimenting with unmanned sales chain stores, currently piloting in Shanghai with plans to expand to Hangzhou, creating a new business model in the industry.

2. The Challenges of Branding in the Domestic Wearable Nails Industry

In the field of product design, some merchants claim to collaborate with professional art academy teachers for color matching, trying to showcase their design strength and product quality. However, the design differences between affordable wearable nails are negligible, and merchants sourcing from Donghai County struggle to differentiate their products in terms of design. Increased market competition has led many businesses to reduce prices in order to clear inventory.

The entire industry lacks influential brands, and consumers often make purchases randomly, without strong brand loyalty. Merchants on platforms like Douyin pursue short-term profits and lack brand awareness or development plans. The wearable nails industry demands rapid updates of new products, but the innovative capacity of handmade nail artists cannot keep up with the market’s demands.

A significant issue for high-end handmade nail artists is that consumers generally view wearable nails as cheap substitutes for traditional nail art. This perception severely restricts the growth potential of the high-end market.

3. Overseas Opportunities for Wearable Nails

However, wearable nails have performed well in overseas markets. According to data from CHINAPLAS International Rubber & Plastics Exhibition, in 2024, the annual sales of wearable nails from Donghai County reached 8 billion RMB, with e-commerce sales accounting for 4.5 billion RMB and cross-border e-commerce accounting for 20%. Sales cover regions such as Europe, the US, Southeast Asia, Japan, South Korea, and the Middle East. On platforms like Xiaohongshu, many international students use wearable nails as a product for overseas sales.

In terms of brand building, Naillook, a brand under Nidu Planet established in 2018, completed its Series B financing and is one of the few well-known brands in the industry. However, the vast majority of small and medium-sized merchants still lack the willingness or investment in brand development.

（RESOURCE：公众号Popise）

Some unique attempts have appeared in the market, such as wearable nails with unusual shapes designed by niche designers. These designs are special but less practical, with limited use cases that can only meet the needs of specific enthusiasts. This reflects the industry’s dilemma of balancing innovation with practicality.

Experienced professionals in the industry believe that the current wearable nails market is chaotic, with both knowledgeable and inexperienced entrepreneurs entering the field. The market share held by successful operators is being divided up, and businesses that do not operate well often resort to clearing stock at low prices after a brief period of success. As the industry says, “The waves wash away the heroes,” and only a few will truly stand their ground in this market.

This vertical market, though having vast potential, requires substantial breakthroughs in product innovation, brand building, and business models to stand out in the current environment. Especially in terms of consumer perception, design innovation, and brand development.

PS: The translation is done by AI.