(Yicai Global) May 24 -- Rebecca Hair Products Co., China's biggest wig maker, has decided to invest USD20 million setting up a wholly owned US unit to expand sales in the North American market.
The subsidiary will focus on the import, export and sales of hair products and help develop distribution channels to reach more customers, Henan province-based Rebecca Hair said in a statement yesterday. It may inject up to an additional USD80 million into the unit depending on its performance.
Some 95 percent of the company's USD200 million revenue in 2016 came from exports to the US as well as Africa and Europe, according to a manager at the firm. The increasing demand for beauty products is fueling Rebecca Hair's exports to international markets.
With nearly 11,000 employees, the company produces thousands of different types of hair pieces, selling them in more than 40 countries in Western Europe, Asia, Africa and North America, according to it website. Whether worn by famous entertainers or cancer patients, or even just for fun, wigs and hair extensions are a multi-billion dollar business. Research suggests the market can only grow further.
After establishing the new subsidiary, Rebecca Hair will still use its original supplier model for distributors in the US, the statement added.
Editor: Mevlut Katik