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VOL.4 April 2012
Taking a Noble Approach
The world's biggest hair product company takes Africa by storm
by Liu Yanqing

Zheng Youquan feels overjoyed that the wigs made by his Rebecca company are so well received by African customers. Based in Xuchang, central China's Henan Province, Rebecca wigs are worn by at least seven wives of African ambassadors to China, branded as Noble.  

The largest hair product manufacturer in the world and the only one of its kind that has gone public in China, Rebecca's hair products include human hair weaves, ladies wigs, mannequin wigs, synthetic hairpieces and toupees sold in more than 30 countries and regions. Rebecca's products enjoy competitive brand recognition in North America, Africa and Europe.

 

African favorite

The company's Noble brand is particularly designed for African customers.

"Hair products by Rebecca have been sold in many African countries in central, western, eastern and southern parts of the continent. They are best sold in Nigeria and South Africa," Zheng, Chairman of Henan Rebecca Hair Products Co. Ltd., said in an interview with ChinAfrica.

According to him, the sales volume of Rebecca in Africa reached around $80 million in 2011, making the company indisputably the leading brand among its competitors in Africa. Production is expected to increase once branch factories are enlarged in Nigeria and Ghana, with 2012 estimates expected to reach around $150 million.

 

Strategic marketing

During its 20-year history, exploring the African market is one of the company's biggest strategic decisions. Rebecca's headquarters in Xuchang is China's largest distributing center for human hair. Since the late Qing Dynasty (1644-1911), Xuchang has been a world-known processing and trading base for raw hair products. Many locals work in the industry. Zheng, who started his career as a hair products trader there, soon set up a small hair factory, turning Xuchang from a sole distributing center to a hair products manufacturing base. Currently, there are hundreds of hair products manufacturers in Xuchang, whose sales account for more than half of the total national sales.

In 1993, Zheng's factory became a Sino-U.S. joint venture named Henan Rebecca Hair Co. Ltd. It was reshuffled and launched as a shareholding company in 1999 - and in 2003, it went public.

Before 2000, the United States was Rebecca's primary market. However, as the market in the United States had matured, Zheng realized the risks to the company's future development by putting all his eggs in one basket and the company began to explore markets in other continents, including Africa. Zheng embarked on a fact-finding mission to Nigeria, Ghana and Cote d'Ivoire in 2000. "I was shocked that shops selling hair products could be found everywhere in a market in Lagos, capital of Nigeria. Seeing this, I believed Africa would be a potential market," said Zheng.

 

Reaping success

Rebecca took a long-term view of their African operation. At the end of 2000, the company established its first sales company branch in Lagos and launched Noble, a brand particularly for Africa. "We didn't make a profit in the first half year due to cultural differences, local competitors' boycotting and lack of knowledge on local market demand," Zheng told ChinAfrica, adding that it was their consistency in promoting the brand that attracted more and more agencies to purchase Noble later. "Our products had to be sold at a higher quality but lower price," said Zheng of Rebecca's strategy.

After three years' efforts, Rebecca was well received by locals in Nigeria. The supply of the Noble brand couldn't meet the demand, with the market share taking up 50 to 60 percent. Rebecca then set up six branches in Nigeria and began to set its eyes on Ghana, Cote d'Ivoire and Togo, enjoying increasing popularity in Central and Western Africa.

From 2006 Rebecca's success inspired more and more Chinese hair product manufacturers to seek their fortune in Africa. Facing fierce competition, Rebecca adapted its strategy and began to explore markets in central, eastern and southern parts of Africa. It set up sales companies in South Africa, Kenya, Tanzania, Democratic Republic of the Congo and Zambia, all the while perfecting its sales network on the continent. 

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