The Alibaba Wig Industry Partner Has Set Up Xu Changzhi To Reveal The Status Of The Wig Industry

- Nov 01, 2018 -

he development of China's hair products industry has gone through the development from the 1990s to the present, to receive orders and the production road of OEM processing, mainly in xuchang, henan province and Qingdao, shandong province. The enterprise of wig takes product as its soul. With the great changes of The Times, it moves forward in constant changes: OEM - self-production and self-marketing - e-commerce, each era has its unique characteristics, and new era is pregnant with new opportunities.


The wig industry is in trouble


At present, China has become the world's largest production and export of wig, derivative more than 500 well-known brands, more than a few million practitioners. As the production base of wig in China and the location of the world's largest wig manufacturer, xuchang has a great influence on the export of wig in China. However, the problems in the foreign trade of wigs were not solved timely and effectively, which affected the healthy development of the foreign trade of wigs.


1. Status quo of wig export


1. The sales, profit and export of the enterprise show a downward trend


On October 17, 2016, henan Rebecca co., the largest wig manufacturer in xuchang city, reported three quarterly reports. In the first three quarters, the company achieved operating revenue of 1.37 billion yuan, down 8.62% year-on-year, and achieved net profit of 118 million yuan belonging to shareholders of listed companies, and deducted net profit of 117 million yuan after deducting, down 9.58% and 10.48%, respectively, from the same period of last year. Since this year, the export of the wig industry has declined greatly. Last year, we concentrated on stocking goods to a high base.


2. The current production status of the enterprise is basically normal


Based on the investigation of several large and small scale production enterprises such as Rebecca, xuchang hengyuan, xuchangsen yuan, xuchanglong zhengzheng and yuzhou shenlong in henan province, most of them judged the current production and operation status as "good" or "general". The prices of products exported by many enterprises fell, production orders increased and enterprises used more labor.


2. Problems in the export of wig


1. At present, many production enterprises of hair products still adopt family extensive operation and management mode, with low management level and backward production mode. Many enterprises are still in the process of value chain and their competitiveness is only supported by local labor force. This backward mode of production and operation not only affects the production efficiency and product quality of enterprises, but also causes environmental pollution and health of employees, which is not conducive to the long-term sustainable development of enterprises.


2. Most enterprises of wig products are engaged in licensing production and management, which generally lack independent intellectual property rights and the awareness of cultivating private brands. The licensed production mode also increased the dependence of xuchang wig manufacturers on foreign brands and could not participate in the direct distribution of huge profit in terminal sales. On the one hand, the brand production mode reduces the profit that the enterprise should obtain, on the other hand, the enterprise often cannot obtain the core technology through the brand production. The technology content of foreign brand products produced under the brand license in China is generally relatively low. These products generally belong to popular products and medium and low grade products. This is mainly because domestic manufacturers have not met the technical standards required by high-end products, so they cannot receive the production orders of high-end products. The OEM model also has unavoidable risks. The financial crisis has shown us that the export-oriented economic growth model has many disadvantages.


3. There is a shortage of professional talents in wig products enterprises. Talents have a significant impact on the development of the enterprise, and even determine the fate of the enterprise. With sufficient professional talents, the enterprise can not only improve the production efficiency, but also bring vitality to the enterprise, enhance the innovation ability of the enterprise, and thus bring greater development space to the enterprise. However, due to the small scale and backward technology of the production enterprise in xuchang city, the enterprise leaders do not pay enough attention to professional talents, resulting in the lack of innovation and competition awareness of enterprise personnel, low work efficiency, which restricts the development of the enterprise.


4. Backward product styles and lack of innovation. Innovation is the soul of an enterprise's survival and development. The significance of product innovation is obvious, innovation is the driving force of development, and product innovation is the driving force of enterprise development. Through product innovation, enhance product competitiveness, broaden the market and establish a good brand. In the era of network economy, enterprises meet the personalized needs of consumers to seize the future of enterprises, while the production of products in xuchang city has a single product structure, backward style, and single function, which cannot meet the demand of consumers for wigs, resulting in a huge obstacle to the development of enterprises.


5. Production enterprises often compete for raw materials and fight price wars with each other, which has affected the international market and greatly reduced the profit margin of the industry. In recent years, the global demand for hair products has increased, leading to the blind expansion of production, competition for raw materials, production of hair products significantly increased, the situation of oversupply in the international market. In order to compete for market share, enterprises crowd out competitors and the price of products keeps falling, which finally affects the profits of enterprises and is not conducive to the development of enterprises themselves.


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