Many sellers have welcomed wig products in the domestic, cross-border e-commerce community. Due to the developed industrial belt in Xuchang, many successful sellers have emerged in the surrounding areas, relying on the rise of wig products.
However, the competition is intense due to the severe homogeneity of wig products. Leading sellers have already monopolized most markets, making it difficult for new brands to stand out.
But there is a wig brand that goes against the conventional wisdom. It doesn’t engage in price wars but instead focuses on high average transaction value, ultimately successfully breaking through. This brand is OQ Hair, primarily targeting female consumers in the European and American regions, selling various wig products.
High Price but Generates High Sales Volume
Generally, if a brand aims to compete differentially, it will target specific demographics, and OQ Hair is no exception.
Upon entering its official overseas independent website, one can see that most of its models are African women with dark skin. The probability of hair loss among African women is much higher than that of white women, reaching 0.4%. Therefore, wigs can be considered a necessity for this consumer group. Earlier reports have shown that, on average, African American women in the United States own 6-7 sets of wigs.
Additionally, there has been a continuous increase in demand for wig products overseas. The United States is the world’s largest consumer market for wigs, with African American women in the U.S. being the primary consumers of wigs. This is also why OQ Hair chose to enter the U.S. market first.
In terms of product pricing, OQ Hair has its logic. According to information, prices range from $100 to $250, with an average order value as high as $150, far exceeding the average selling price of most wig products. Typically, with such a high average order value, selling in the context of the general consumption downgrade overseas might be challenging. However, the actual situation is that its sales are similar to other brands.
This may be because it quickly gained a foothold on emerging platforms like TikTok. Data shows that on TikTok Shop alone, a star product under OQ Hair achieved a monthly GMV of $550,000, even during the product off-season.
According to the data, since OQ HAIR opened its store on TikTok Shop’s U.S. site, the total store sales have exceeded 10,000 items, with an estimated sales revenue of $1.52 million, and the current trend is still on the rise.
Marketing Strategy： the Crucial Role of Influencers
OQ Hair primarily adopts a marketing strategy of collaborating with overseas influencers and operating official accounts.
OQ Hair has invested a considerable budget in influencer collaborations. By partnering with numerous overseas influencers, the brand rapidly exposes itself to a broader audience and generates significant conversions. According to data, OQ Hair has collaborated with 341 influencers who specialize in fashion accessories. The distinguishing feature of these influencers is that, although their video views might be low, their conversion rates are pretty good, providing excellent cost-effectiveness.
On the other hand, OQ Hair has accumulated over 150,000 followers on its official TikTok account. Most of the videos on this account feature overseas influencers providing feedback through try-on videos showcasing high-definition lace, glueless wigs, colored wigs, etc. The filming techniques are simple, yet the conversion rates are high. This approach not only reduces the cost of creating independent content but also adds an element of fun to the content. It also informs the audience that many people are already using the brand’s products, effectively maximizing the utility of influencer marketing.
Challenge: Brand Awareness
The global wig market is expected to grow to $13.28 billion by 2026. This indicates that despite the intense competition, there are still new opportunities in the wig market.
Currently, several leading sellers have emerged in the wig category, many of which have become well-known brands overseas:
⦁ UNice: UNice, originating from the “wig capital” Xuchang, began its overseas expansion in 2014. After years of development, it has become a prominent North American wig market player.
⦁ Luvmehair: Luvmehair, a rising star that started its overseas expansion in 2019, followed in UNICEF’s footsteps through cross-border e-commerce. Its independent site received over a million visits in just two years, achieving tens of billions of yuan in revenue without external financing.
⦁ Rebecca: Founded in 1990, Rebecca is a globally renowned fashion wig brand.
Regarding scale and recognition, OQ Hair may have a slight advantage compared to these brands, and its differentiation may need to be more distinct.
If OQ Hair wants to maintain its rapid growth, it may need to enhance the brand’s visibility further. After all, the current high average order value requires strong brand support.