Finding Neverland of Wigs
Wigs industry has carried out its global plan. They rearranged the manufacturing plant and reset the market objectives in order to achieve a better goal and gain a better profit. The adjustment would let those enterprises go through the economic crisis more safely.
Most of the domestic enterprises, especially the exporting one, have suffered from the bad economic circumstances. However, there was an exception. The synthetic wigs industry is totally globalized. The materials are mainly bought from India, and the manufacturing facilities are built mostly in Bengal, Indonesia, Philippine and Cambodia which are also the new manufacturing center of women jeans and sport wears nowadays. Then, more than 80% of the final product would be delivered to Europe, American and Africa. The globalization is the Neverland of the trading field.
At the very beginning of this industry, it was absolutely an exporting business in China. Asian people’s hair is born with nice quality which is one the main reason that the wigs are made to export. Besides, the traditional idea in Asian minds is with nothing about the wig. That leads to a misunderstanding of the wigs are created to cover the lipsotrichia. More than 80% of the wigs produced in China have been exported to foreign countries. In 2011, the export amount of wigs was US$2.32 billion while the domestic sale amount was about CNY￥2 billion. The big head of the industry in China would rather to focus on foreign markets than the domestic. Some of them even close their domestic trade department to invest more in the foreign market which might be the gold mine.
The early strategy adjustment helped the whole industry to avoid from the unexpected trading circumstances.
The strategy is set high for the western market, which is to focus on developed countries like Europe and America. The products for these countries are with extremely high quality and at high price. In the other hand, the products delivered to Africa are not as good as them. As the Africa market is set to be a low end market, manufacturers develop two lines to separate the goods which are to maintain the brand in the developed countries.
To explore a bigger market, it is important to solve the problems brought by the negative trading scenario. The globalization is a sound solution to take the industry to a better future, as long as the enterprises are ready to aim at the higher and bigger goals.