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Forum Overview » Homepagetools - Support » Off-Topic » wig market research
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wig market research
cymhairno Access no Access first Post cannot be deleted -> delete the whole Topic 
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Some time ago, the topic of "Chinese wigs” become foreigners hot search, in this global hair loss, hair loss world, it is not surprising, but a wig can be sold for "700 or 800 US dollars" is advertised as a "luxury" "Pin" is shocking. Some netizens were annoyed and said, "I feel like I have lost a lot of money", "I knew I would keep it until now, and I only gave 200 yuan after cutting it into an inch"...

I have to say that the success of this topic has made the public have a strong curiosity about the wig industry, and it has also caused cross-border e-commerce sellers to think about wig brands going overseas. In today's situation of rising costs, disappearing traffic dividends, and perfect platform rules, is the performance of wigs still strong in different channels? Is there still a chance for novice sellers to enter the market? If you want to know more about market capacity, brand share, proportion of new products and other related data, click here to learn about Amazon's standard product selection tool.

Wigs in China are just in demand, and hair loss products have achieved 150% growth

According to the global "face value economy" report released by AliExpress, baldness has become a common problem all over the world, and a wig that is bought every 2 seconds has also become a rigid demand for overseas consumers, especially from China. Xuchang wigs from the famous wig industry. In 2018, the AliExpress platform anti-hair loss products achieved an ultra-high growth of 150%, including hair growth essential oils, anti-drop shampoos, hairline concealers, laser hair growth combs, laser hair growth caps and other hot sales overseas. In addition to the AliExpress platform, Amazon, eBay, Wish and other platforms have more and more wig categories, and the brands of independent stations are also extremely popular, such as Rebecca and UNice.

The wig industry also encountered "Waterloo" before being returned to the public's vision by the top search. In 2015, starting from Xuchang, China's wig industry went abroad and became well-known by overseas consumers. Since then, the double blowout of market demand and low prices and high profits has promoted the brutal growth of the wig industry. Due to the lack of industry standards, the rapid expansion of wigs has seen phenomena such as price wars and homogenization. Enterprises are facing reforms in production models and operational thinking. The major platforms subsequently incorporated product quality and customer experience into the assessment criteria. For example, in 2017, AliExpress adopted an invitation system, and only merchants that have been reviewed and licensed by the platform have the authority to operate and publish wig products.

After being constrained by the platform and reorganizing the industry, the transformation and upgrading of the wig industry has become the only way. But after a long period of barbaric growth has been "whipped", is the wig industry still "profiteering" as before? Or "a piece of the Red Sea"?

The wig industry is hit, and 5 major factors have caused "great profits" no longer exist

During the period of "great profits", several major wig industry belts were formed in China, such as Xuchang, Qingdao, Guangzhou and other places, and then huge wig sellers were born. Su Junwei, general manager of the wig brand Ali Annabelle, told that in just three years, Ali Annabelle has grown from a five-person team that sold hundreds of dollars a month to a monthly sales of 40W+, achieving monthly sales of 100 % Breakthrough; from a junior seller who only relies on in-station traffic, slowly advanced to a comprehensive seller with independent off-site drainage capabilities; from a single product of clockwork, slowly enriched lace hair sets, color hair, accessories And other related categories, to cater to the diversified needs of customers and promote the steady growth of GMV. Similarly, Wang Zhanwei, the founder of Henan Weiku Supply Chain Management Co., Ltd., also said, "Since 2015, the company has incubated 4 independent sites with monthly sales exceeding 1 million US dollars, and supply chain distribution business services have reached more than 100 Companies".

It cannot be denied that the increase in platform thresholds and the reorganization of the industry have a great impact on sellers, but from another perspective, it is also a good opportunity for transformation and upgrading for factory sellers or platform sellers. "Except for the star-brand business on the platform, the performance of most sellers has fallen sharply. However, it has also opened another door for sellers to transform to independent stations or platforms. This stage is a watershed in the wig cross-border e-commerce industry. , So that most sellers have a deeper understanding of omni-channel operation and independent marketing." Wang Zhanwei said.

In Su Junwei's view, "For example, AliExpress has set up a'Xuchang Warehouse' and adopted an invitation system, which not only regulates the industry SKU, but also rectifies the product quality of sellers. At the beginning of the policy implementation, many buyers reported that shipments were restricted but adapted After a period of time, most of the customers gave good feedback."

Although under the rectification of the platform, the wig market industry is developing in a healthy direction, but the phenomenon of "extraordinary profits" in the past seems to no longer exist. Su Junwei told, “Foreigners are not allowed to wear clothes, but not to wear wigs. The rapid development of the wig industry in cross-border e-commerce and the enthusiasm of foreign consumers for wigs have caused such a hot phenomenon in the industry. But. Any industry has its unknown difficulties, at least no industry is an eternal profiteering industry." He analyzed from the following aspects:

1. The cost of imported raw materials. Although Chinese wigs are just needed, the Chinese people’s own hair is also limited, and because Chinese people’s hair is relatively thin, it is not suitable for products with light colors or too large curvature. Therefore, the need to import from other countries, such as Cambodia, Vietnam, India and other places, increases the cost of raw materials.

2. Strict platform rules. Early platforms did not have so many rules. Many merchants engaged in price wars in order to increase sales, seriously neglecting customer experience and providing shoddy products. There was indeed a phenomenon of "great profits". But since the major platforms began to focus on product quality and customer experience into the assessment criteria, this kind of profiteering phenomenon has basically disappeared.

3. Environmental protection requirements. The state has become more stringent in the rectification of corporate environmental pollution. Enterprises need to purchase advanced sewage treatment systems, and the original family workshop-style office model has been transformed into the machine age, which has also increased costs.

Fourth, improve the quality of handicrafts. In order to reduce the damage to the protein of the hair itself, Ali Annabelle has improved the process and processed the hair with cold treatment to make it "live" longer. Enriching the variety of hair colors, hairstyles, etc. virtually increases the cost.

5. Operating costs. The transition from relying solely on platform traffic to now diverting traffic through Google, Facebook, Instagram, etc. has greatly increased the operating costs of enterprises.

Therefore, in his view, the era of low-cost, high-profit wigs "great profits" has passed. At this point, Wang Zhanwei is deeply touched, "With the rising cost of raw materials, rising personnel costs, rising network promotion costs, rising logistics costs and other factors, huge profits no longer exist, but normal sales profits. ".

He said that even normal sales profit scores on product positioning and market. If it is European and white hair products, profits still exist; if there are matching wig-related products for sale or high-end people, the profit will be much higher than that of black hair. Under normal circumstances, wigs are divided into three groups: European market, mainly white products; American market, mainly black hair curtains and headgear; African general trade, chemical fiber products and low-priced real human hair products. "Different groups and products will indeed have'low cost and high profit', but it cannot be described as'extraordinary profit'."

Competition in the wig market continues, independent sites and platform sellers have both encountered pain points

At present, although the "extraordinary profits" of the wig industry no longer exists, the heat of competition in the market has only increased. For platform sellers, Su Junwei believes that peer price competition is relatively fierce. "Take the wig series Remy Hair as an example. Different shops have different prices based on their own costs, and low prices have obvious advantages. With the increasing price of raw materials and increasing logistics prices, the profitability of wigs Getting smaller and smaller is a pain point for the entire wig industry. How to reduce costs while ensuring product quality, so that more customers can enjoy tangible benefits, is a problem that must be broken." ,

12/14/2020 10:14:44 AM    
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