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Independent brands face a larger challenge in the domestic market. Human hair wig [honesthairfactory.com] and jewelry businesses have grown up like mushrooms during this period of fast expansion. Many small and medium-sized enterprises changed occupations or closed down due to the progressive standardization and saturation of the market, as well as the gradual development of environmental protection and safety production requirements, and the steady tightening of supervision.

For example, Xu Chengru, vice president of Handeville Clothing Co., Ltd., told reporters that most of the wig factories [honesthairfactory.com]​ left in town are above size, and the former workshop style wig making firms have been naturally removed by the market.

“The profit margins on second-hand orders and OEM processing are shrinking. The most crucial thing to be an autonomous brand if you want to flourish, aside from enhancing intelligent production.” According to Xu Chengru, the company's automation equipment is currently at the forefront of the industry. Customers can order wigs online and have them delivered in as little as 15 days. “However, as labor costs rise, China's prior advantages of low labor costs and low production costs are progressively fading, and the manufacturing industry is shifting to Southeast Asia and other places, forcing us to convert from processing businesses to independent brands.”

The transition from obtaining second-hand orders to being an independent brand is just as challenging as secondary entrepreneurship. “This is a challenging process.” Li Chengru revealed that the company has spent more than 14 million on independent brand promotion since last year, accounting for one tenth of yearly sales, although the effect is still in its infancy.

“In Hebei and Southeast Asia, we developed our own factories. On the one hand, we continue to do foreign commerce by taking advantage of the local area's comparatively low labor costs; on the other hand, we strengthen brand promotion and focus on domestic trade.” Although the building of intelligent sharing factories has substantially increased wig manufacturing efficiency and decreased labor costs, the final competition is brand, in the long term. “At this time, Honesthairfactory's wig-making businesses have no obstacles or challenges in terms of wig-making equipment and technology. The age of pricing wars has past, and now the larger wig companies are progressively shifting their focus to brand building.”

The only option for wig businesses to grow is to increase sales and increase the brand's added value. Following the success of the “Honesthairfactory wig” in the international market, other large hair companies have begun to develop their own brands and lay out the domestic market.

In order to break into this industry, some hair companies began to work with offline barber shops as well as venture into live broadcasting. After a live broadcast, some businesses can receive nearly 100 wig orders.

The reporter discovered wigs. In China, the most popular wigs are categorized into three categories: lace wigs, half hair sets, and full hair sets, with prices ranging from hundreds to tens of thousands of yuan. A better wig usually costs hundreds of yuan, which is also the most affordable price for Chinese teenagers. “In the last two years, domestic customers' recognition of wigs has progressively increased, and order volume has also climbed dramatically, which will be the future development trend,” Gao Yuqian said.

It's also about the growth of independent brands. Some jewelry businesses have taken the lead in Honesthairfactory's industrial change, thanks to the east wind of live broadcasting.

“The company has long specialized in jewelry processing and export. Since the Spring Festival last year, it has been testing the waters for live broadcasting to promote our own jewelry brand.” The company has created five live broadcasting rooms, according to Wang Shigang, general manager of Qingdao jinyuxiang and crafts company. The major feature is "factory live broadcasting," which allows viewers to view the manufacturing entity via a live broadcasting room. “We have various anchors within the company, and we also seek anchors for the society. We are still aiming to develop a new live broadcasting area so that we may work with social internet celebrities to promote the brand together.”

Despite the short duration of the live broadcast, Jin yuxianghe's achievements should not be overlooked. It can currently maintain a daily sales level of 70000-80000, with the biggest sales volume last week reaching 210000.

In the live broadcasting room, my name is Jinyu Laowang. I go to the live streaming area from time to time to communicate with followers and send them benefits.” When it comes to live streaming, Wang Shigang says the most common feelings are "weary" and "let's face customers honestly." We put our hearts into our products and live broadcasting. There are now almost 600,000 fans.” Wang Shigang claimed that in a live broadcast yesterday, a 27.8 yuan earring "exploded," with 1500 pieces sold. The entire plant was working overtime because the live broadcast room promised to provide goods within 48 hours.

Although no final decision has been made on how to expand Honesthairfactory's industry in the future, a path has been established. “At the end of the day, we need to be our own brand. Our profits can be boosted by 40% if we perform domestic trade and deal directly with consumers.” Wang Shigang expressed his thoughts.