Massive African Wig Market: Indian Companies Raking in Profits
The African wig market is estimated to be worth nearly $6 billion and is growing year by year. Indian companies have emerged as the dominant players in the African wig market, reaping substantial profits. Recognizing the immense potential of the African wig market, other global cosmetic giants like Unilever and L'Oréal are also investing heavily to tap into this market.
According to a report from the foreign media outlet "madamenoire" on January 12th, Hugo.com learned that Indian beauty supply companies, particularly those dealing in wig products, are making substantial gains in Africa. Indian wigs have gained popularity in the African market due to their strength and favorable structural texture. They have become highly sought-after products in Africa. Fueled by Indian companies, the demand for wigs is continuously increasing, leading to the expansion of hair care business across Africa.
Last week, an Indian consumer products company named Godrej Consumer Products India acquired a hair extension company in Africa. This move aims to expand the product range to attract more African customers and further develop the African market.
Godrej is not the only company taking such action. Previously, other Indian companies like Marico, Dabur, and VLCC have also ventured into African countries such as South Africa, Morocco, and Nigeria to conduct business operations.
The export of Indian wigs has been rapidly growing year by year, and the continuous expansion of these companies is no surprise. The estimated total value of India's wig export market has reached $393.5 million, with an annual growth rate ranging between 10% to 30%. Indian wig companies typically export two types of hair: Remy and Non-Remy. Remy hair is usually collected from temples and has the highest hair quality. Non-Remy hair, on the other hand, undergoes processing. As Non-Remy wigs have cuticles in different directions, they are treated with hydrochloric acid to remove these cuticles. This processing reduces the hair quality, making it more affordable.
In order to obtain natural wigs with an undamaged chemical structure, Indian companies even resort to methods like online wig auctions. For instance, The Tirupathi Temple, an Indian company, holds online wig auctions annually. Since 2011, they have earned a revenue of $97 million through wig auctions.
For Indian wig companies, Africa presents the most promising market opportunity. The dry and coarse hair market in Africa is estimated to be around $6 billion and is growing year by year. Witnessing the immense size of the African hair care product market, global cosmetic giants like Unilever and L'Oréal are investing substantial funds to tap into this market.