Black hair is inherently distorted and difficult to manage, and wigs are just needed for them. Ni Chiqing, head of the AliExpress wig industry, told the Red Star journalist.
Wigs exported from China have been regarded as “black gold” by African locals, and many people are discovering real gold from “black gold”.
International student Peter is purchasing wigs for customers in South Sudan in China. On April 24, he revealed to the Red Star reporter that the April has not ended. His net profit this month has already been about 1200-1600 US dollars (about RMB 8065-9408).
At the same time, the Red Star journalist found that the annual income of hair products enterprises in the African market reached 1.947 billion yuan.
Peter's product display
African students: earn money by purchasing wigs
“Asian women may be more concerned about the face and skin, but in Africa girls are more concerned about hair, they have a high demand for this.” Peter, a student from South Sudan, told the Red Star journalist.
Currently, Peter is studying business administration at Hefei University of Technology. In addition to his studies, he started a purchase and brought the wigs produced in China back to his country, South Sudan.
He told Red Star reporters that women in South Sudan usually spend a lot of money on their hair every month. They often go to the salon to spend on weddings or festivals or even ordinary days.
“If a girl goes to the salon every week, she can spend more than 0 a month on her hair. But if they buy one or two wigs, they can save months of spending. For them. Very cost-effective," Peter said.
Peter came to China in September 2011 and started purchasing wigs last summer. “At first, there were friends who wanted to buy Chinese wigs through me. I know the Chinese market, so I will help them to buy.”
Initially, Peter went to the market for a field trip, but now he is buying wigs from a supplier from Yiwu, Zhejiang. On April 24, Peter revealed to the Red Star reporter that April has not ended. His net profit this month has already been about 1200-1600 US dollars (about RMB 8065-9408).
When asked if African consumers have the ability to afford wigs, Peter said, “70% of people who buy wigs are office workers, they can afford it. The quality of wigs is good and the price is no longer a problem.”
At present, Peter's sales model still relies on regular customers to bring new customers. He said that the current conversion rate of advertising purchases on social platforms is very low, and he hopes that people in South Sudan will accept e-commerce in the future.
African market growth of 100%-300%
According to Alibaba's cross-border e-commerce platform, AliExpress data shows that on average, a wig is bought every two seconds. Among them, the annual growth rate of wigs in the European and American markets is about 50%, and the African market will have a growth rate of 100%-300%.
Ni Qianqing, head of the AliExpress wig industry, told the Red Star journalist that this growth data is not really surprising. Because it represents a cross-border e-commerce model, end consumers can directly omit middle wholesalers and retailers compared to traditional manufacturing and traditional foreign trade.
Shen Dalei, who has been engaged in the hair products industry for many years, also introduced to the Red Star reporter that his company now has 40%-50% share directly through the B2C platform AliExpress, and the remaining share is still in the traditional B2B foreign trade model.
EMEDA Hair Extensions Factory is one of leading wholesale hair extensions manufacturers and best virgin remy human hair extensions wholesale suppliers in Asia, which is located in Heze,Shandong, China.
We specialize in manufacturing good quality Hair extensions includes clip in hair extensions, tape in hair extensions, fusion keratin hair extensions, pre bonded hair extensions,micro ring hair extensions, with professional techniques and exquisite workmanship.
Most of our products are exported to USA, EU, Africa and Australia. As a professional and reliable human hair extensions manufacturer, we have won lots of high reputation from our customers in the past 16 years.
For the explosive growth of the African wig market, Shen Dalei said, “Africa is basically black people, wigs are just needed for them. And in the past, its base is relatively low, so the growth is very fast. The future with Africa With the popularity of the Internet, there is still a lot of room for digging in the entire market."
He told the Red Star reporter that "the sales price of the same product in different regions is the same, but it may push some high-end products in Europe and America, and push some products with lower prices in Africa."
Although Shen Dalei did not disclose the company's revenue and net profit and other data, Red Star News reporter found that the first listed company in the hair products industry, Henan Rebecca Hair Products Co., Ltd. - had disclosed relevant data in its earnings report.
According to its 2017 annual report, the operating income for the year was 1.947 billion yuan, and the net profit attributable to shareholders of listed companies was 215 million yuan. Among them, Rebecca's annual operating income in the African market reached 884 million yuan.
Chinese wigs call black gold in Africa.
African youth visit Xuchang wig factory
Shen Dalei said, “In Xuchang, the history of this piece of wig can be traced back to the Qing Dynasty. At that time, some people were engaged in the collection of hair raw materials. Xuchang has always been the source of hair raw materials. In the 1980s, Xuchang locals began. Try to deepen your hair."