How a Chinese City Became the World's Unexpected Savior of Hairlines

Deep News
Sep 10

In a livestream under the account name "UNICE," a host with Asian features is trying on a curly wig popular among African women. Through this broadcast, American consumers on the other side of the screen can receive their orders as quickly as the next day after purchasing. However, few realize this is the account and brand of a hair products company from Xuchang, Henan Province, China.

Within the global wig industry map, the Xuchang wig industrial belt, originating from Lingjing Town in Jian'an District, commands roughly 60% of the global market share. Its presence in European and American markets exceeds 40%, while in African markets it surpasses 70%, forming what can only be described as a sprawling "wig empire."

As one of the districts under the prefecture-level city of Xuchang, Jian'an District, where Lingjing Town is located, serves as a key production base and core hub for the local hair products industry. In 2024, Jian'an District was named to Henan Province's list of specialized industrial clusters for small and medium-sized enterprises—the cluster designation being the "Jian'an District Hair Products Industry." At that time, the district was home to 199 hair product companies, 280,000 employees, and a total cluster output value of 16.77 billion yuan.

Over the past two years, the hair products industry has continued to grow, both in Jian'an District and across greater Xuchang. Data from the Jian'an District Commerce Bureau shows that total foreign trade import and export volume for 2025 reached 8.271 billion yuan, with hair product companies accounting for 7.621 billion yuan of that figure. Among 406 foreign trade enterprises, 311 are hair product companies.

Data from the Xuchang Municipal Commerce Bureau indicates that the hair products industry is the city's core pillar export sector. In the first half of 2026, the city's hair product imports and exports reached 11.56 billion yuan, up 10.8% year-on-year, representing 79.8% of the city's total import and export value. This "champion in a single category" market position was not achieved without facing significant hurdles. Despite numerous challenges, this strand of hair has not only remained unbroken but has also demonstrated remarkable resilience and staying power.

Where the Century-Old Roots Lie

When discussing the hair industry in Xuchang, almost everyone traces back to the century-old connection between Jian'an and this trade. According to the recently published "Xuchang Hair Products Chronicle," in the 26th year of the Guangxu reign of the Qing Dynasty (1900), Bai Xihe, a villager from Quandian Village in Lingjing Town, Jian'an District, partnered with a German merchant to establish a hair trading house, dealing in human hair. Tian Liangjun, vice president of the Xuchang Hair Products Association and general manager of Xuchang Hair Expo City Market Management Co., Ltd., noted that Bai Xihe was a pioneer in the industry. He went to the Thirteen Factories in Guangzhou, met a German trader, and began buying hair—exchanging needles and thread for hair—and subsequently made his fortune. News of this success soon spread far and wide across the region.

Tian explained that after Bai's trading house opened, locals realized the business was lucrative, and villagers took up the pole of a traveling peddler, walking through streets and alleys to collect hair. A measuring stick, a scale, a pair of scissors, and a mirror were all the equipment an early hair collector owned. Later, the hair-collecting teams expanded from surrounding villages and towns to other provinces, reaching as far as Xinjiang, Tibet, and the Yunnan-Guizhou-Sichuan region, causing hair from across the country to flow continuously into Jian'an and its surrounding areas.

The "Xuchang Hair Products Chronicle" notes that in 1921, more than ten private households in Quandian Town, Xuchang County, were engaged in processing "dangfa," primarily selling to theatrical costume and prop shops. By 1925, Xuchang County's dangfa was being exported by private merchants via Qingdao, Wuhan, and other ports to Korea, Japan, and beyond. By 1930, it reached over ten countries including Korea, Japan, the Philippines, and Singapore, as well as Hong Kong. "Dangfa" refers to the semi-finished form of human hair that has been cleaned, straightened, and manually sorted by length into bundles—a core trading unit in the upstream wig supply chain.

In early August, at the home of villager Chen Lijun in Xiaogong Village, Lingjing Town, Jian'an District, several elderly women aged between 50 and 70 were sorting freshly collected human hair. Using tools like fine-toothed combs and rulers, they manually classified and smoothed the hair by length, tying it into small bundles and arranging them neatly. Xiaogong Village, adjacent to Quandian Village, quickly rose as a major village for dangfa processing and hair collection after the late Qing and early Republic period. Family workshops like Chen Lijun's, where human hair is sorted by grade, represent the industry's earliest form in the region.

Chen recalls that in earlier days, 90% of families in Xiaogong Village were involved in the dangfa trade. Men would go out to collect raw hair while women stayed home sorting it—a routine that continued for decades. She admits the work is exhausting. Sitting all day, year after year, takes a toll on the back, arms, and hands. Beyond sorting hair, hand-tied wig crafting remains an important artisanal skill in the local industry. A single hand-tied human hair wig takes two to three days to complete, a process machines still cannot fully replicate. It takes at least six months for a worker to progress from complete novice to skilled craftsman.

"An industrial system doesn't become what it is overnight," Tian said. "Our hair products industry has over a hundred years of history behind it." When explaining why this historical depth matters, Tian emphasized that the raw materials, talent, technology, and information for the industry are all concentrated here, along with the supporting accessories, equipment, printing, and packaging. He noted that Yunnan, Guizhou, and Xinjiang have all attempted to relocate the entire hair products industry to their regions, but none succeeded. The reasons are straightforward—training talent takes years, raw materials would need to be shipped from here, and all the auxiliary supplies, equipment, and packaging would still have to be sourced from here. Logistics costs alone make relocation economically unviable.

Lingjing Town in Jian'an District remains the national primary processing center for wig raw materials. However, local industry players prefer to promote themselves collectively under the banner of "Xuchang Hair Products," using cluster development to drive individual company growth, even as Jian'an's industry continues to spill over into surrounding areas. The "Xuchang Hair Products Chronicle" records that over more than a century, the industry evolved from a barter exchange of needles for hair into an industrialized powerhouse, transitioning from raw material processing and handicraft workshops to full-scale manufacturing. It has become the country's largest hair products raw material distribution and export base, with enterprise numbers, workforce, product structure, and technological standards all ranking among the world's best.

Breaking Through the Bottleneck

But transitioning from "selling raw materials" to "selling finished wigs"—for both Jian'an District and Xuchang as a whole—has relied on far more than a century of accumulated history. Tian Liangjun, born in 1979, has witnessed the industry's evolution over recent decades. Fresh out of university, he answered a job advertisement and found himself washing hair for wig production in a factory—working with steam, unpleasant odors, and scalding temperatures. Later, he drifted back into the industry through a trading company, where several projects he planned turned profitable, restoring his confidence and interest in the sector. Through these experiences, he also saw the difficulties the local industry faced.

In Tian's memory, after reform and opening up, the local industry shifted from "selling raw materials" to "contract manufacturing," but technology and distribution channels were controlled by Korean merchants. He explains that the primary consumers of wigs worldwide are people of African descent. The European and American markets have a higher share of premium human hair products, while the African market has greater demand for cost-effective synthetic fiber options. At that time, however, Korean-Americans monopolized the beauty salon network in the United States. They bought raw materials from China, refined them, and sold finished wigs directly to consumers, keeping the most profitable stage for themselves.

"In the past, over 80% of the American wig market was controlled by Koreans, and we were strangled by that grip," Tian recalled. "Korean agents would come to Xuchang to inspect goods, acting condescending. Local manufacturers had to cater to their every whim, even offering them water to wash their hands after inspections." Desperation breeds change. Tian notes that one person deserves special mention in this story—Zheng Youquan. Born in 1954 in Xiaogong Village, Zheng learned wig-making skills as a child and entered the dangfa processing and trading business in the 1980s. Driven by the thought "Why can't we make wigs ourselves?" he founded the Xuchang County Hair Products General Factory in 1990 at age 36.

The challenge was that the core equipment for wig-making, the "triple-machines," could not be produced domestically, and the foreign companies holding the technology refused to sell. Undeterred, Zheng traveled to Qingdao and persuaded a retired master craftsman from a wig factory to sketch the machine's structure from memory. After repeated debugging, he built his own triple-machine, breaking the Japanese and Korean monopoly on wig production equipment. He then worked alongside workers in the workshop, conducting endless trials until they produced Xuchang's first "colorful hair" recognized by foreign buyers. In 1993, Zheng's company entered the North American market through a joint venture with an American firm. By 2003, his company, Rebecca, was listed on the Shanghai Stock Exchange, becoming the first listed company in China's hair products industry. Tian marvels at how Zheng transformed the region from a raw material distribution hub into a production and processing base for finished and semi-finished goods, propelling the industry into a new era of rapid development.

E-Commerce Opens the Way

However, market channels were still firmly controlled by Koreans at that point. Tian recalls that the turning point came around 2014 when cross-border e-commerce arrived. Platforms like AliExpress and Amazon allowed local hair product companies to bypass middlemen and reach overseas consumers directly, shifting from OEM production to building their own brands. Unice, a cross-border e-commerce brand from Jian'an District, exemplifies this path. According to brand representatives, Unice first opened stores on platforms like AliExpress and Amazon around 2014, then built independent websites around 2018. "We took a brand-first approach from the very beginning, registering trademarks in China, the EU, and the United States," the representative said. "Since third-party platforms impose rules and carry risks related to store listings and capital, we developed independent sites to reduce platform dependence and maintain control over our operations. More importantly, we can fully control product quality, which helps build our brand."

But cross-border e-commerce in the hair products industry has not been smooth sailing. Under the scattered-order shipping model, one thorny issue confronted companies: how to legally collect foreign exchange. In the past, local wigs were exported in large batches under general trade with mature customs procedures. But with e-commerce, companies sent goods abroad one small parcel at a time without customs declarations, making it impossible to legally bring money back into China. In late 2016, local companies went to the Xuchang Foreign Exchange Bureau to raise the issue of parcels being unable to clear customs for foreign exchange settlement, hoping to resolve the sector's revenue collection dilemma.

One hair products company executive in Jian'an District told The Paper that at the time, customs supervision code 9610 had already established a "list declaration, aggregated reporting" model for cross-border e-commerce exports. However, because small parcel exports struggled to form complete customs declaration information, the mismatch between capital flow and goods flow when companies tried to settle foreign exchange led to them being flagged for abnormal supervision by the foreign exchange bureau. To resolve this, the head of the Xuchang Foreign Exchange Bureau escalated the issue through multiple channels. After more than a year of effort, a national policy enabling "sunshine" foreign exchange collection for cross-border e-commerce was introduced, and Xuchang companies became among the first in the country to register under it. Scattered order settlements could finally be conducted transparently. This facilitation measure was subsequently promoted nationwide, paving an institutional path for the entire hair products industry and demonstrating the strong support of Xuchang's government departments.

Beyond that, as early as 2014, some Xuchang hair product companies began establishing overseas warehouses. Their initial motivations were simple: to better understand U.S. market information and to reduce logistics costs on bulk shipments. This seemingly ordinary move later became an "anchor" for these companies. "In 2025, cumulative tariffs on Chinese hair products to the U.S. once reached 145%, and tariff costs on parcels under $800 also rose sharply. Factories around us shut down one after another because they couldn't ship goods," said the Jian'an District company executive. That company survived the sudden tariff shock because its overseas warehouses held sufficient inventory as a buffer.

In the executive's view, overseas warehouses not only provide emergency cover but also enhance the consumer experience. Shipping from China meant parcels might take one to two weeks to reach customers, but shipping from a U.S. local warehouse can deliver a wig the very next day after purchase. "The faster you arrive, the less likely customers are to return items," he said. Overseas warehouses convert logistics efficiency into brand trust and enable return and exchange services to function effectively.

OQ Hair, a brand under Xuchang Weiken Hair Products Co., Ltd. in Lingjing Town, launched a "glueless cap" in 2023. Through improved mesh cap design, wearing time was reduced from half an hour to just a few seconds. A 15-second video demonstrating the process garnered three to four million views per posting. Within six months, the brand's sales reached tens of millions of yuan. Tian Liangjun stated, "The rise of cross-border e-commerce completely shattered the Korean monopoly on market channels. Our industry shifted from OEM to independent brands, from passive recipients to active players—this marks our leap into independent development."

In April 2026, information released by the Xuchang Branch of the State Administration of Foreign Exchange noted that "Xuchang hair products currently hold over 40% market share in Europe and America and over 70% in Africa, with the 'Global Hair Capital' city card shining brightly." A Xinhua News Agency report from June 2026 stated, "As the world's largest hair products distribution center, Xuchang's wigs are sold to more than 120 countries and regions—for every 10 wigs sold globally, at least 6 are produced here."

Navigating a New Path

Despite these achievements, Xuchang's hair products industry cannot afford to rest on its laurels. "Homogeneous competition once plagued the industry's development," Tian said. "In the end, it hurts the merchants and ultimately the customers—when profit margins are squeezed to the extreme, adulteration and counterfeiting may become some people's survival tactic, and after-sales service quality can also decline." In fact, whether it's OQ Hair launching the "glueless cap" or other companies building overseas warehouses and developing proprietary brands, these are all strategies for differentiated competition and growth.

External pressure is equally significant. "Cross-border e-commerce platforms freed our wigs from the Korean channel monopoly, but they also created new problems—high platform commissions and constantly changing rules. Merchants can't even decide what they sell or what prices they set," Tian lamented. "Amazon, AliExpress, and Temu charge commissions ranging from 5% to 20%, squeezing already thin profit margins. It's getting harder for sellers on these platforms to make money."

Another concern is the talent gap in Xuchang's hair products industry. During interviews with hair product companies, The Paper learned that many production steps still require manual work. But fewer people are willing to do handwork or work in factories these days, especially young people. Although monthly wages for workers have risen to around 8,000 yuan, above Xuchang's average salary, the industry still struggles to attract younger recruits. For instance, a fully hand-woven wig requires experienced workers to work continuously for about a week to complete. Machines still cannot fully replace hand-hooking. As the older generation skilled in these techniques gradually ages, some manual-dependent production stages have already been outsourced to overseas locations.

Against this backdrop, for many local Xuchang hair product companies, one key direction is moving upward—abandoning low-end price wars in favor of high-end, brand-driven strategies. Simultaneously, they are expanding outward by building independent websites to reduce reliance on third-party platforms. Additionally, leading companies in the local industry have begun exploring equipment research and development, hoping to pursue automated production. One Xuchang hair products company leader said, "Industrial development should emphasize overall regional promotion. Don't promote individual companies—promote the industry itself—so people know wigs are a Xuchang thing, not just one company's product. No matter how capable you are, you can't match the strength of the entire industry."

Xuchang Hair Expo City, operated by Tian Liangjun, is also exploring another possibility: building a "Global Wig Selection Center" and "Spot Goods Distribution Center" to give international buyers a "see it, get it" experience, bypassing platform constraints. Located in Jian'an District near the Xuchang East Railway Station and Xuchang Coach Terminal, the Expo City features wig storefronts arranged neatly in rows, with products filling shelves—from synthetic fiber wigs priced at dozens of yuan to fully hand-tied human hair wigs costing tens of thousands.

"We're the wig capital, but in the past, outsiders who came here couldn't even find a place to buy a wig. Although there were many hair product companies, they didn't serve walk-in customers. The industry lacked a visible, tangible outlet," Tian explained. The Expo City is Xuchang's first wig distribution market geared toward end consumers. Founded in 2022, its positioning is simple: what you see is what you get. If a customer likes a specific style, they can take it home the same day, eliminating the traditional month-long wait between ordering and delivery. "We want global buyers to know that for wigs, Xuchang has everything they need," Tian said. The Expo City turned profitable within its first month and has since seen month-over-month growth. Current annual sales volume for resident merchants (including e-commerce) has reached around 200 million yuan, with over 98% of customers coming from across China and growing numbers of international buyers.

Tian noted that Xuchang Hair Expo City is part of the China (Xuchang) Cross-border E-commerce Comprehensive Pilot Zone and is a key construction project for Xuchang in 2025. The comprehensive project includes 28 sub-projects, such as the China Animation Wig City and a Three Kingdoms Hanfu and Ancient Hair Accessories Cultural Experience Plaza. The vision is to combine wigs with cosplay, Hanfu, and Three Kingdoms culture to create immersive consumer scenarios. In Tian's view, no matter how the industry transforms, one simple truth remains constant: genuine quality at fair value is the ultimate card. "If your product is inferior, nobody will buy even if you beg. If your product is excellent, people will come to you with respect," he said.

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