Why is the wig industry unable to open the Chinese market?
Since Henan Rebecca Hair Products Co.Ltd(600439) was listed, the wig industry has not undergone great changes. However, with the birth of emerging wig brands in recent two years, more products that meet the new needs of consumers have been launched one after another, and the wig industry may gradually enter the public’s vision.
This report will draw a final conclusion by analyzing the driving factors of China’s wig market, the pain points of China’s wig industry, the driving and development trend of China’s wig industry and comparing new and old brands: China’s wig industry is facing supply chain problems, but new brands and categories may promote the development of the industry and broaden wig consumer groups.
\u3000\u30001. Overview of China’s wig industry: driven by hair loss market, Sankeng market and perm and dyeing Market
Hair loss brings rigid consumption demand to the wig industry, while Sankeng market brings decorative wig consumption demand to the wig industry. Consumers of perm and dyeing are the precise customers of emerging wig brands. With the development of these three markets, the market space of China’s wig industry will be wider and wider
\u3000\u30002. Pain points of China’s wig industry: high upstream costs, lack of industry talents and brands, and the wig industry chain is greatly affected by the epidemic
The upper reaches of the wig industry include human hair and chemical fiber materials, among which human hair materials are in short supply and the price is rising. At the same time, the production steps of wigs are cumbersome and require a large number of professionals. However, China’s labor cost is rising and the number of professional and technical talents is scarce.
In terms of brands, the concentration of China’s wig market is still low, and the proportion of small and medium-sized brands is relatively high.
The production of wigs needs transnational cooperation. Under the influence of the epidemic, not only the upstream production end of wigs is controlled, but also the downstream demand end is vulnerable to the influence of monetary policy and fluctuates greatly
\u3000\u30003. The driving force and development trend of the future wig industry: expand the customer base, increase the re purchase rate and reduce the purchase threshold by developing decorative wigs
China’s wig products show a trend of rapid digestion and fashion, and the main customer base has also expanded from just in need hair loss users to young consumers. By creating unique wig pieces, emerging brands are quite different from traditional brands, which is more conducive to the shaping of brand image.
