We can sell toys to Europeans, clothes to Americans, but sell wigs to blacks. Are you surprised at this channel?
When Chinese people go abroad and gradually become a strong luxury purchasing power, Chinese-made small commodities have long been popular around the world. The e-commerce companies that have emerged in China have not let go of this opportunity, and have started the business of foreigners.
Among the export commodities that are most popular among foreigners on the cross-border e-commerce platform, the wigs are quite dark horses, and the sales volume is second only to clothing and mobile phones, which is more or less unexpected. Due to the large demand for wig products by overseas consumers and the high profit of wig products, selling wigs overseas through online transactions may become a bright spot for China's foreign trade e-commerce.


Wigs sold to overseas high-income groups


Chinese products are competitive in online foreign trade

When attending the fake development in Atlanta, Xie Rongzhen further experienced the characteristics of black culture. In Atlanta, where music can be heard everywhere, the black group’s demand for wigs is also very large. Some people joked, “Black people can wear clothes, but they can’t wear wigs.” The demand is obvious.
In addition, he also found that through the online foreign trade platform to direct products from the factory to the hands of consumers, China's products are very competitive. He observed that the fake in Atlanta was monopolized by Korean manufacturers, and most of the stores were Koreans. However, the supply of Korean manufacturers is basically from China. Therefore, Chinese manufacturers still have great opportunities to enter this market through online foreign trade transactions.
Xie Rongzhen said that in addition to the relatively low price relative to the US domestic market, the quality control of products and better service are the main reasons why his store can achieve sales. Because it is the original producer, this is more advantageous than the Korean manufacturers in the US market.
However, in the process of development, it will inevitably encounter various difficulties. On the one hand, in the past one or two years, the competition in the foreign trade market began to be fierce, which gave them a lot of pressure. On the other hand, due to rising domestic prices, the exchange rate of the US dollar against the renminbi is falling, which has created many difficulties for small and medium-sized sellers in many export industries, resulting in cost pressures. However, for this potentially huge market, Xie Rongzhen is still full of confidence in the future. "In the future, I believe that our physical store can also drive to Atlanta."


In the current small cross-border online transactions, China's wig exports occupy more than 70% of the share in the international market. US wig imports accounted for 62% of the world's total wig imports. In addition, the online foreign trade platform AliExpress has revealed that after 2011, the trading volume of wig-related products has grown rapidly. From the beginning of 2012 to March this year, the total daily turnover of AliExpress platform wigs has increased tenfold, and by 2014 it will occupy a quarter of the US market. Wig export has become a bright spot in China's foreign trade e-commerce.

Expert Reviews

Small cross-border e-commerce will become a trend

Ren Rongwei, the teaching director of the School of Entrepreneurship at Sun Yat-Sen University, said in an interview that small cross-border e-commerce will be more and more in the future, thus forming a trend. Investment in the use of the Internet will increase further, and export trade will become a new bright spot for e-commerce. When a "selling" online trading platform is established, it will give many small and medium sellers more opportunities. He believes that wigs are one of the aspects. The sales of wigs are also related to the needs of foreigners for wigs and the habit of using wigs to dress up. In addition, the price advantage of Chinese wig products makes it in the Americas and Europe. popular. He mentioned that not only wigs, but also other small commodities such as Christmas recently, many Christmas related goods can also be exported through this way.
Ren Rongwei suggested that some Chinese traders who do foreign trade, if they can understand some English, are very big opportunities to export goods on such online trading platforms. He also mentioned that companies such as wigs can be registered in the Shanghai Free Trade Zone, which can reduce the tax burden and exchange risk of such enterprises. However, he reminded such enterprises that when doing cross-border e-commerce business, they should pay attention to local laws and customers' consumption habits. They should also pay attention to China's laws and export restrictions. Don't think about playing the ball.


Find market positioning based on consumption level

Because Xie Rongzhen is a relatively high-end wig product, the products are mostly DIY original, that is, real hair , the price is higher than the non-original wig, the price of a wig is tens to two hundred dollars. Etc. This makes them have certain requirements on the target customer's income level. Therefore, his products are mainly aimed at the European and American markets, and although the African market has a large number of demand, due to the limitation of consumption level, it is not his main market.
In the early days of doing online wig wholesale trade, all the processes were run by Xie Rongzhen, including purchasing, documentary, delivery and so on. And the effect is not bad. In the first month, he achieved 30,000 RMB, and in the second month he achieved 100,000 RMB. The sales growth is very fast. As a result, he began recruiting staff in the third month, including business personnel, procurement and back-office operations. He registered a company and the business in the third month reached a scale of 150,000 yuan.

development of

Financing scale

When the business achieved a certain scale, Xie Rongzhen thought of financing. He found that the sellers who made such small import and export trades were going back and forth between China and the United States to buy goods and find the foundries. Because of the relatively high inventory pressure of the wigs, they would fall into the peak season. The dilemma of the goods. In order to solve the problem of funds, he began to look for partners. In 2011, he established a new company with two fellow villagers. The registered capital is about 3 million, and Xie Rongzhen holds 40% of the shares. In the more than one year since the establishment of the new company and the partners were dismantled due to differences, the company's operations have been good, and the number of employees has grown from several to more than 40. The turnover is also from RMB 300,000 per month to RMB 4 million per month.
Last year, Xie Rongzhen separated from the company, he began to focus on the retail business on the online foreign trade platform. At the beginning, the monthly turnover was steadily increasing from RMB 300,000 to RMB 1.5 million per month. In March of this year, with the development of the platform, the fake intention also reached a high point. According to the Information Times

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