Polaris Uno, a company specializing in synthetic wig fibers, plans to accelerate its global growth by expanding exports to the United States, going beyond the African market.
Generally, the wig industry is divided into "wig fiber manufacturing" and "wig sewing." "Wig sewing" is a typical labor-intensive industry, with China and Indonesia accounting for the majority of the U.S. market, one of the largest demand sources. On the other hand, "wig fiber manufacturing" is a technology-intensive, high value-added industry used for special purposes, with high barriers to entry. This sector is dominated by three companies: Kaneka and Denka from Japan, and Polaris Uno from Korea.
The largest consumers of wigs are Black women. Due to the natural characteristics of their hair, which does not grow long, wigs are both a necessity and a fashion item for many Black individuals. Most well-known Black celebrities also wear wigs.
Over the past decade, Polaris Uno has focused on the rapidly growing African market, driven by rising incomes. As a result, the company has established a solid position as the global No.3 player in the wig fiber market, which had been monopolized by the two Japanese companies for over 40 years.
The growth of Polaris Uno has broken the long-standing monopoly of Japanese firms and is meeting the diverse needs of consumers, making a significant impact on the overall development of the wig industry. Building on its success in Africa, the company aims to enhance its corporate value by expanding exports to the United States, the largest consumer market.
The external environment is favorable. Recently, wig sewing companies have been relocating to Southeast Asia, including Indonesia. In preparation for this shift, Polaris Uno completed its Indonesian subsidiary in January last year, which is now operating smoothly to secure cost competitiveness, ensure fast delivery, and achieve customer satisfaction.
The Indonesian subsidiary produces a range of wig fibers, from flame-retardant braiding fibers-the most in-demand-to premium wig fibers. Through collaboration with major wig sewing companies in Indonesia, production capacity is currently being expanded.
Furthermore, with price competitiveness, demand is expected to continue rising, and the company plans to complete its second CAPA expansion by the end of January. Once this expansion is finished, annual production capacity will increase to 2,400 tons, meeting the needs of wig sewing companies exporting to the United States and further boosting exports to the U.S. market.
The recent trend of a strong exchange rate is also favorable for the company. With approximately 97% of its sales coming from exports, Polaris Uno is well-positioned to benefit from the current strong dollar environment. The combination of a strong dollar and export growth is expected to lead to increased profitability and a more stable financial structure, contributing to the company's long-term growth potential.
Choi Yongseong, CEO of Polaris Uno, stated, "We are pursuing strategic export expansion to strengthen our position in the global market and drive sustainable growth," adding, "By expanding exports to the U.S. market through our innovative products and quality, we will focus on improving profitability and enhancing corporate value."
Meanwhile, according to the "Global Outlook & Forecast 2021-2026" report, the global wig market size is projected to grow at an average annual rate of 14.9%, from USD 5.77 billion (approximately KRW 689.8 billion) in 2020 to USD 13.28 billion (approximately KRW 1.58762 trillion) in 2026.
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