With a long history of development, the wig market has maintained a high degree of activity and its demand is still growing at an annual rate of 20%, which has become one of the biggest international FMCG industries. North America is the world’s largest hair consumer market, which digests 62% of the global wig product.
However, what many people do not know is that throughout the North American market, South Korea’s hair industry makes up for 90% of the market share.
It has become a veritable monopoly industry.
Factory → Wholesalers at all levels → Distributors at all levels → Terminal consumer
Over the years, the Korean wig industry has matured in the North American market with structures like this. But such a complex chain ends up with a very high terminal price which is 300%-400% of the factory price. Nevertheless, single channel coupled with a stable operating chain in South Korea for many years, the South Korean Wig industry has been standing out from others.
However, with the development of the times, especially in recent years with the rise of cross-border e-commerce, this pattern is gradually being broken.