China's wig industry is mainly export-oriented, and North America and Africa account for more than 70 percent of total exports, according to a report by LeadLeo Research Institute.

In China, more than 70 percent of wig manufacturers are located in Xuchang, Henan province, and Qingdao, Shandong province.

Xuchang is the world's top wig exporting base and the largest R&D and distribution center. The city has about 300 wig-producing companies, and more than 300,000 people work in the sector, according to the local government.

Among the 300 wig-making firms in Xuchang, only a handful sell products domestically or have retail stores.

They produce more than 3,000 kinds of wig products, and export them to about 120 countries and regions. The wig-making industry has integrated the latest technologies, techniques and materials, and more than 170 technologies have been patented.

By 2023, Xuchang aims to achieve wig export revenue of 20 billion yuan, with an annual sales growth rate of 10 percent. The city also plans to increase investment in cross-border e-commerce platforms, and set up wig exhibitions and sales centers in the United States, South Africa and the United Arab Emirates.

So far, more than 20 major companies have established branches overseas. In 2019, sales of wigs through cross-border e-commerce platforms reached $2.15 billion, jumping 15.6 percent year-on-year, according to the local government.