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How small wig workshops in China turn to global giant

Business

2019-03-19 19:58

Barbers and stylists aren't the only ones who make their living via the hair industry. A little-known city in CHINA had its roots in the business.

Xuchang, Henan Province is said to be the birthplace of wigs and weaves. Its people spent decades making wigs and other hair products. After generations, they took things to a new level.

In one individual workshop in Xiaogong village, combing double-drawn hair is Zhang Guiqin's daily work.

“I don't need to worry about the crops, the machines can take care of them. I would rather do this, because it can make a lot of money,” Zhang said.

More than half of Zhang's village's 900 households are involved in the hair industry, either by sorting it out or selling it. Some routinely made more than a 10 percent profit.

Zhang Guiqin sorting hair into same length./CGTN Photo

It had been a century-long business. Xiaogong villagers had collected hair ever since the Qing Dynasty.

With the urbanization process underway, many young people in the village moved downtown in pursuit of better careers. Some of them joined the local wig manufacturing giant, Henan Rebecca hair Products.

The company stretched its assembly lines out of the country to Nigeria, Ghana and Cambodia.

“Labor costs in CHINA are increasing. Establishing a production line abroad can help solve the problem. It also shortens the market cycle and saves on shipping costs,” said Hu Liping, Rebecca's Secretary of the Board.

Industrialized production line boosts threshold of hair production. /CGTN Photo

Industrialization and globalization raised the threshold of the hair industry. From the technology of synthetic hair production to sewing skills, Rebecca participated in writing the industry's world standard.

The era of collecting hair domestically is almost over. The company moved its upstream supply chain to India.

“It's an industrial upgrade,” said Zu Lei, Rebeca's Wig Material Purchasing Office Director, “Originally, we collected hair and sold wigs just in CHINA. Now we see the chain from a global perspective. Meanwhile, the quality of the items has also improved.”

The company's response to CHINA's Belt and Road initiative has also boosted employment in all of its 11 international branches, as the market goes wider with evolving demand.