At Character Creation, you can chose between different features for how your character will look in game. One of these is the haircut. You can then visit one of the barbers later on to make changes to your appearance for a Trade Note (250,000). In addition to facial features and hairstyles, Empyrean characters can visit the barbers to become "earthbound" (walking instead of floating) and Undead and Shadow characters can opt to remove the head particle effects (the flaming skull or the Shadow crown).