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    As Hair Loss Grows Among Gen Z, So Does China’s Wig Industry

    Whether facing hair loss, seeking better styling options, or embracing cosplay, young Chinese across the country are driving a surge in demand for wigs.
    Aug 01, 2024#business

    From full wigs and hairpieces, including bangs and detachable ear-length extensions, to themed products for cosplay and Hanfu enthusiasts, young Chinese are driving a booming domestic wig market.

    In Xuchang, a city in central Henan province known as the “world’s wig capital,” local manufacturers report a surge in orders. The city, which hosts more than 4,000 enterprises and accounts for 60% of the global market share, has seen this growth fueled by the popularity of wigs in both domestic and global markets.

    Across China, sales on platforms like Douyin, the Chinese version of TikTok, nearly doubled in the first quarter of 2024 compared with the same period last year, with over 70% of searches for wig products on 1688.com, Alibaba’s online wholesale marketplace, originating from those under 30.

    These products cater to both the practical need to cover hair loss and the aesthetic desire for versatile styling options. According to data from Cicada Insights, sales of different types of wigs in the first quarter of 2024 alone reached between 2.5 billion and 5 billion yuan ($345 million to $690 million).

    The growing interest in hair accessories comes as young Chinese grapple with premature hair loss. A survey by the National Health Commission found that one in six people in China suffers from hair loss, with 84% encountering the issue before turning 30.

    While hair transplant surgery costs at least 20,000 yuan in China, a quality wig made of chemical fiber is priced at several hundred yuan, a 32-year-old white-collar worker in Shanghai surnamed Xu told Sixth Tone.

    “It’s an affordable solution that also provides you with the simplest procedure to cope with the issue,” said Xu, who regularly wears an extension to cover his bald forehead at work and requested to be identified only by his surname due to privacy reasons.

    Across the country, however, this booming industry extends beyond hair loss solutions. Wigs have become essential accessories for cosplay and Hanfu enthusiasts, driven by the growing ACG (anime, comic, and game) user base in China, which reached 490 million in 2023. On e-commerce platforms, sales of “cosplay wigs” exceed around 20,000 each month.

    According to Xu, both young men and women now place greater emphasis on their personal appearance as the media sets higher beauty standards. On the lifestyle platform Xiaohongshu, there were more than 2 million posts related to wigs, with viral examples featuring recommendations for wig products to mimic the looks of female stars and celebrities, as well as trials by bald individuals using wigs to change their appearance.

    According to state broadcaster CCTV, the impact of this trend is not limited to China. Wig enterprises in Xuchang are reporting continuous growth in orders, forcing many local factories to rush the production of wig toppers and extensions in various colors and styles to meet the demand.

    Sales of a wide range of products, from affordable wigs made of chemical fibers to high-end ones crafted from natural hair, have surged. Zheng Wenqing, a senior executive at a wig enterprise in Xuchang, told CCTV that sales have grown between 20-30% in its online and offline business-to-consumer channels this year alone.

    According to Fortune Business Insights, the global hair wig market is expected to grow by 67% over the next eight years. While Japan and South Korea used to be the major players in the field, recent years have seen a shift in the market landscape, with China increasingly dominating the business and leveraging cross-border e-commerce channels to expand sales.

    With products selling to countries including the U.S., South Africa, Japan, and the U.K., China’s wig exports amounted to $3 billion in 2022, capturing 80% of the global hair accessories market. Last year, Xuchang reported a 10% increase in the import and export of hair products compared with 2022.

    Despite robust business growth, CCTV reported that the market remains competitive due to a lack of innovation, as many wig makers offer highly similar products. Some business owners even highlighted a high refund rate for products sold online due to their unsuitability and consumers’ lack of knowledge in maintaining the wigs.

    There have also been safety concerns among the Chinese public regarding false hair products. A sampling test conducted in 2022 by the Shanghai Consumer Council, a local consumer rights watchdog, found that 60% of wig products in the market contained substances harmful to human health, and many wigs made of chemical fibers were prone to combustion risks.

    Editor: Apurva.

    (Header image: Customers browse though wigs at the Yiwu International Expo Center, Yiwu, Zhejiang province, March 26, 2023. VCG)