African-Americans contributed to 85% of all sales in the U.S. beauty industry in 2017 though they represent only 14% of the population. According to Mintel, the black hair industry is valued at $2.5 billion, and that doesn’t include hair accessories, wigs, extensions, products sold in salons nor hair services. Sales for hair relaxers have declined due to the natural hair movement, but wigs and extensions have increased. Women are opting for variety and protective styling, which has caused the boost. With such an influence and these types of profitable numbers, the tech industry has started to dip a toe into the market.
Chanel Melton is making sure that black women are not just consumers in the black hair industry, but bosses as well. Melton, founder and CEO of Rose Gold, has been in the hair industry for over 10 years. Rose Gold is a subscription platform that offers drop shipping services for hair extensions, and helps women launch their beauty business in a few hours. Melton launched her platform in August of 2017. In less than one year, Melton has turned a profit and has been successful raising capital.