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Domestic hair consumption South Africa picked 21% up in 2020

Hair prices in South Africa allow stores to get high profit margin

Selling hair is a business that survives all economic ups and downs, the recovery during the Pandemic is a new proof. When you look for a stable business with still enough growth opportunities, I recommend to start your own hair business in South Africa.

Based upon the trade data from the United Nations, the national demand is increasing for hair, wefts, wigs and hair extension in South Africa. With 2017 as reference year, the demand for hair was $ 39,6 million (purchasing price). This dropped to $ 33,5 million in 2018 to an even lower demand in 2019 ($30,4 million). However in 2020, the year that saw the outbreak of the Covid-19 Pandemic there was a 21%, or 6 million increase making 2020 a top year with an domestic demand of hair in South Africa.

The report from World is One, India’s first global news network, about the hair market in South Africa confirms the growth prospects for this business. In other countries one can see a recovery of the hair demand in 2020 followed by a further increase in 2021. For South Africa this means selling hair is a business with a bright future. It is clear, there is a clear growth of demand for hair extensions in Africa and especially South Africa.

Hair Business opportunities in South Africa

Thanks to Google it is possible to zoom in on the specific hair pieces South Africans are searching for. The last 5 years, braids are the absolute number one search term. Companies like Darling hair do benefit from this need, and resellers of braids, or companies offering similar brands can benefit too.

Surveys from Google trends show areas like Northern Cape and Gauteng and Western Cape show this evolution, of the demand for braids.

 

Are you going to compete on price?

In this growing market it is important to position yourself right. You need to understand the prices for hair extensions in South Africa. If your unique selling point is the price, low price. It will be very difficult to increase your selling price later. Your brand will be identified with cheap and you will need to generate a significant growth of turnover to stay profitable.

To understand the prices for hair extensions in South Africa, you can visit some online hair stores.

For example, Hair City , South Africa’s leading Hair & Salon Destination, as they introduce themselves and designed with Shopify. They offer X-pression ultra braid for R 52, Freetress synthetic Cuban Twist Braid for R 150 and ahead band wig for R 2000. Plus for certain areas they have next day delivery.

Another store, also designed with Shopify, is Style Diva. Since 2011 they launched over 20 stores in and are still counting. A clear evidence the hair business in South Africa has growth potential. Their prices are for the X-pression ultra braid for R 58, Brazilian mid part lace front wig R 1,849. Many of their wigs were sold out at the time of the visit, while wigs are very much in demand.

Focus on specific products, like wigs?

Another position you can consider is to offer high quality hair, extensions and wigs, rather unique in the market and people will identify your shop with knowledge and expertise. Do not underestimate the need for wigs. More and more women discover the comfort of wigs. Although interest is still less than extensions in this segment you can really differentiate your shop from the rest of the market. Be aware wigs are very popular in the United States and they are flooding into the United Kingdom. If you are ahead of the market, people will come to you once they are interested too in getting their own (lace) wigs.

Be unique and grow your hair business

Be sure, to stay focused, once you decided what your unique selling point is, a discount shop or the best wigs shop in south Africa continue to broadcast this message in through your website, social media and when you organize an events.

There is growth and room for your store in South Africa. Are you ready to start? <strong>Try the free Shopify trial to grab this business opportunity!</strong>

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