Fashion accessories, particularly wigs, have shown strong growth recently, potentially overtaking the home category in sales. This trend is driven by their popularity on social media platforms like TikTok, where Americans are buying various wigs. OQ HAIR SHOP, a local wig store in the US, has seen impressive sales performance, as per data from Shoplus.

1.About OQ HAIR SHOP

The store joined TikTok's US station at the end of August last year and has seen impressive results. With a total sales volume of 24.3 thousand items and an estimated GMV exceeding 3.52 million USD, the store has entered a high-speed growth period in the last 30 days. Sales reached nearly 8,000 items, with an estimated GMV of 1.14 million USD, accounting for around 1/3 of the total GMV. The store offers 28 items, mainly single-piece wigs including straight hair and corn curl hair, priced between 58.82 to 341.10 USD, with an average price of 155.97 USD.

The most popular item is a multi-specification black long hair wig. Since its launch six months ago, the total sales volume is nearly 18,000 items, with an estimated GMV of 2.57 million USD. The product has various length specifications, with prices ranging from 30 to 184 USD.

2. Audience of Wigs - African American Women

Wigs are essential fashion items for African American women of all ages. Many young people start wearing wigs from a young age, with those with better economic conditions owning multiple wigs. Celebrities like Michelle Obama, Beyoncé, and Rihanna are also fans of wigs and regularly get their hair done every few weeks to a month.

For African American women with naturally curly and messy hair, a head of jet-black straight hair and large curls is their dream hairstyle. It is said that Meghan, the Duchess of Sussex, spends at least 7 hours each time to manage her long straight black hair, which is not practical for ordinary people. Therefore, many black female stars wear wigs to have different hairstyles.

This local wig shop mainly relies on short video influencers to promote their products, supplemented by live streaming sales. The influencers are predominantly African American, and even those with less than 10,000 followers show impressive conversion rates. These influencers share some common characteristics: they have flamboyant and eye-catching outfits, colorful nail art, and thick false eyelashes. They are bold in their actions and words, and their speech is filled with spontaneous comedic effects, making their videos attractive to viewers.

Influencer @iamjaymonique recently promoted a wig from OQ HAIR SHOP in a video that received over 8.4 million views and potentially generated $84,000 in GMV. She engaged with the camera, spotlighting the natural fit of the wig, which intrigued viewers across genders. Many viewers who typically don't wear wigs found themselves drawn to her endorsement, with some even making purchases.

According to surveys, in African countries with relatively good economic conditions, some women are willing to spend up to 30% to 50% of their income on wig maintenance. Therefore, wigs are considered both a necessity and a luxury item, and consumers are willing to pay a premium price.

3. The Future Market for Wigs

In addition to African Americans, the love and acceptance of wigs by other races have also gradually increased in recent years. Some segmented wig products, such as wig pieces and bangs, have also been selling well on TikTok Shop. For example, this synthetic wig piece comes in as many as 55 different colors, lengths, and styles, priced between $9.99 and $14.99, with total sales about to surpass 10,000 pieces.

In 2022, the global wig and hair extension market size reached $6.46 billion, with a projected compound annual growth rate (CAGR) of 8.4% from 2023 to 2030. In the past, wigs were mainly targeted at people suffering from hair loss due to illness, aging, and stress. However, nowadays, wigs have become a popular fashion accessory for more people to enhance confidence, aesthetics, self-expression, and explore various styles. Social media platforms like TikTok and Instagram have also played a significant role in boosting the popularity of wigs.

In 2022, 66% of the revenue in the wig industry comes from wigs and extensions made from real human hair. Due to the high cost of raw materials and procurement, products made from real human hair are more expensive. However, it is predicted that by 2030, the compound annual growth rate of synthetic hair products will reach 8.7%. Advances in production and design technology have driven market growth, for example, advanced fibers that make wigs and extensions lighter in weight and more versatile.

For wig selection, due to the differences in aesthetic preferences among various ethnic groups, it is recommended that sellers who want to enter the market can use Shoplus to investigate the aesthetic preferences, popular trends, consumer prices, and frequency of their target customers.