A "Golden" Start! This TikTok shop in the United States has earned $4 million in GMV in half a year by selling wigs!

 TikTok Shop US e-commerce data weekly (02/26-03/03):

· Total GMV $97.6 million last week, average daily order value of $13.9 million, an 11% increase from the previous week. Sales and GMV on the TikTok Shop US have been steadily increasing over the past four weeks；

· Top 5 categories by GMV last week: Beauty & Personal Care, Collectibles, Womenswear, Health, Sports & Outdoors, and Phones & Electronics；

· Health category saw significant growth in sales and GMV last week, primarily driven by a number of health supplements;

· Fashion Accessories experienced rapid growth last week, it is speculated that this category may surpass the Household category next week to become the sixth-highest category.

 

Wigs are among the most beloved products by consumers worldwide. On TikTok, many Americans are purchasing a variety of wig products through short videos and live streams. Recently, EchoTik data has discovered that a US-based wig shop named OQ HAIR SHOP has shown remarkable sales performance.

 

The shop entered TikTok Shop US in late August last year, with a total of 24,300 sales and an estimated GMV exceeding $3.52 million. Sales and GMV growth have entered a high-speed period in the last 30 days, with nearly 8,000 sales and an estimated GMV of $1.14 million, accounting for about 1/3 of the total GMV.

 

In the past 30 days, the shop has had a total of 28 in-store products, mostly single-piece wigs, including straight and corn curl styles, priced between $58.82 and $341.10, with an average price of $155.97.

Among them, the most popular is a multi-specification black long-hair wig. Since its launch six months ago, total sales have reached nearly 18,000, with an estimated GMV of $2.57 million. The product comes in various length specifications, with prices ranging from $30 to $184.

The audience for wigs is predominantly African-American women. For them, wigs are essential fashion items in their lives. In African communities, regardless of age or gender, as long as economic capability enables, people start wearing wig products from a young age. Many young people with better economic conditions own at least three to four wigs each. Wigs are also popular among Black-American celebrities, such as former First Lady Michelle Obama, and famous singers Beyoncé and Rihanna, who frequently change their hairstyles at hair salons every two weeks to a month.

For Black-American women with naturally curly and unruly hair, glossy straight or big curly hair is their dream hairstyle. It is said that Meghan, the Duchess of Sussex, with her naturally curly hair, spends at least 7 hours each time managing her hair to maintain her long glossy straight hair. However, this is obviously impractical for ordinary people. Therefore, many black female celebrities choose to wear wigs to have different hairstyles.

This local wig store mainly relies on influencer-driven sales through short videos, supplemented by live streams. The influencers are primarily Americans, and from the data, it can be seen that even some low-tier influencers with less than 10,000 followers have achieved excellent conversion rates in sales.

 

These Black-American influencers share some common traits: they dress flamboyantly, like colorful nail art and thick false eyelashes, speak boldly, and have an improvisational comedic effect in their speech, attracting viewers to watch the entire video.

 For example, when influencer @iamjaymonique promotes this wig, she spends nearly 4 minutes chatting with her audience, while the actual process of wearing the wig takes less than 30 seconds. During the rest of the time, she looks at the camera "admiring herself" and demonstrates the natural fit of the wig, attracting many people to interact in the comments section. Some even say, "Although I'm a man and don't wear wigs, I'm deeply attracted by your speech," while others say, "I'm not interested in wigs, but seeing you wearing them feels great, so I bought a few." This video has over 8.4 million views and an estimated GMV of over $84,200.

Currently, due to the relatively few competitors in the same category, wigs still have a significant premium on TikTok Shop. Compared to prices in 1688, the selling price is almost four to five times higher for the same product.

According to surveys, in countries with relatively good economic conditions in Africa, a woman is willing to spend 30% to 50% of her income on wig care. Therefore, for them, wigs are not only necessary items but also luxury goods, and they are willing to pay a premium for them.

 

Other than Black Americans, the love and acceptance of wigs by people of other races have also gradually increased in recent years. Some segmented wig products, such as hairpieces and bangs, are also increasingly popular on TikTok Shop. For example, this synthetic hairpiece has as many as 55 different variants in color, length, and style, with prices ranging from $9.99 to $14.99, and total sales are about to exceed 10,000.

However, on platforms like 1688, the average wholesale price for synthetic wigs has dropped to less than 10 RMB ($1.50).

In 2022, the global wig and hairpiece market reached $6.46 billion, and it is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030. In the past, the main audience for wigs was people suffering from diseases, aging, and stress-related hair loss. Nowadays, wigs have become fashion accessories for more people to build confidence, improve aesthetics, express themselves, and explore various styles. Social media platforms like TikTok and Instagram have played a significant role in the popularity of wigs.

The United States is the largest wig market, accounting for over 40% of global revenue.

 

In terms of wig types, hair wigs, and hairpieces made up 66% of revenue in 2022. Due to the high cost of raw materials and procurement, products made from human hair are more expensive. According to forecasts, the compound annual growth rate of synthetic hair will reach 8.7% by 2030. Advancements in production and design technology have driven market growth, such as advanced fibers, which make wigs and hairpieces lighter and more versatile.

While selecting wig products, due to the aesthetic differences among different ethnic groups, it is recommended that sellers who want to enter the market use EchoTik to investigate the aesthetic preferences, trends, price points, and purchase frequency of their target audience.