Due to the small market share of hair products in Asia and Europe, sales orders are far from meeting the current needs of China's hair product manufacturing industry. With the advent of the Internet era, e-commerce sales have emerged, allowing products from the manufacturing end to be sold directly to the consumer end, and also bringing us the opportunity for hair product production products to directly enter the US sales market. Facing this opportunity, how should we seize it?
First of all, we need to have a clear and accurate understanding of the market situation. The US market is like a huge cake, which is figuratively butterfly-shaped (i.e., the market product structure distribution). The wings of the butterfly can represent the current traditional sales model (the right wing generally represents traditional conservative ideas) and the new e-commerce sales model (the left wing generally represents the innovative faction). The main product is human hair wefts (Natural Hair). According to the current sales situation, the right wing accounts for 60% and the left wing accounts for 40%. With the popularization of the e-commerce sales model, the sales of human hair wefts are gradually equal. The limbs of the butterfly can represent cheap braids. The head of the butterfly is a wig (hairpiece, hair piece, etc.), and the sales of human hair and chemical fiber are increasing.
The emergence of this market form can be traced back to 10 years ago, when e-commerce quietly emerged. The main products sold were natural braids and natural hair (Natural, Bundle) spring products (weighted in kilograms) similar to those sold in Guangzhou Beauty City Market. Then, traditional American wholesalers saw business opportunities and further developed and researched these non-standard and irregular natural hair bundles and springs measured in kilograms, transforming them into relatively standard products that consumers can more easily accept. After several years of promotion, this product gradually became the mainstream product in the market (the right wing of the butterfly-shaped market). Traditional wholesalers also promoted and increased the marketization of natural hair (Natural, Bundle) spring products, but consumers are more willing to buy them through e-commerce channels because they are cheaper than traditional sales. This has brought time and market space for the development of Chinese e-commerce. Chinese wig product e-commerce is like an ant sticking to the right-wing market cake and gnawing.
The decreasing number of orders for traditional products has prompted some factories producing traditional products to join the e-commerce competition, which has compounded the fierce competition in the e-commerce industry. Under the remote bombardment of Chinese e-commerce and the gnaw of small American independent sellers, the American market has become devastated. By the time a large-scale corporate fleet sailed to the other side of the United States, the market there was already in a mess.
If Chinese companies simply sacrifice their own profits and resources to temporarily gain market share, it will be a tragedy for manufacturers and distributors. An industry that could have lasted for 100 years and been enjoyed by three generations will be destroyed due to short-sightedness.
If the Chinese hair products industry wants to enter the U.S. market safely, effectively, and stably on a long-term basis, it must cross the river in a group like legion ants. Although there will be sacrifices, the surviving large-scale team will be able to build a nest and occupy the market on the other side.