[News Brief – April 22, 2025] — The Gua Sha wholesale industry, which has enjoyed several years of growth, is now experiencing a slowdown. Several factors have contributed to this stagnation, including reduced market demand, increased market saturation, and tariff issues. Today, we visited several of our key competitors and main supply factories (due to our own production capacity being saturated, we outsource some orders). All of them reported a noticeable decline in business recently.
Our first stop was in Xiaojinkou District, Huizhou City, Guangdong Province, home to numerous Gua Sha factories, including several of our main partners. We visited Mr. Hu, who primarily provides popular, standard Gua Sha tools. He explained that the demand for jade Gua Sha boards has significantly dropped, and while quality requirements have increased, the prices offered to his factory have not risen. As a result, his business has been struggling to maintain production, let alone make a profit, over the past few months.
Next, we visited Mr. Lai, who specializes in providing customized products for our clients. Unlike Mr. Hu, Mr. Lai’s business appears to be thriving. He reported that his order volume has not only remained stable but has actually increased.
After visiting the factories, we spoke with several industry peers, all of whom shared concerns about the current market conditions, with orders significantly declining. They identified several key reasons for the downturn:
Market Saturation: The industry’s market share has been exhausted, leading to reduced product demand. Moreover, new markets have yet to be successfully developed, leaving the industry in a transitional phase.
U.S.-China Trade War: The ongoing trade tensions have caused many orders to be put on hold.
Increased Competition: As more competitors enter the market, the “pie” has become even smaller, making it harder for businesses to secure a share.
Product Homogenization: The proliferation of substitute products has weakened the competitive edge of existing Gua Sha tools.
Despite the widespread challenges, many in the industry have recognized the root causes of the current predicament. This brings to mind the situation of Mr. Lai, who, unlike Mr. Hu, is not suffering losses but is actually experiencing growth. It’s clear that the solution to this dilemma lies in product differentiation and enhanced competitiveness.
As customer demand for differentiated products increases, why not seize this opportunity to develop more unique and innovative offerings? If the industry is already stuck in a rut, why continue digging deeper?
We firmly believe that the future of the Gua Sha wholesale industry lies in innovation, not in price wars. This is the path we are pursuing, and we hope that fellow industry players will also recognize this future.
