| Major wig manufacturers are informing retailers this | | | | Petroleum, which has been hovering just under $100 |
| week that wig costs are about to rise for a variety | | | | a barrel, is also partially to blame for increased costs |
| of reasons. Reasons such as rising costs of | | | | in the wig industry. Aside from the petroleum used to |
| production and transport, devaluation of the | | | | transport the goods, it is also a major ingredient in |
| American dollar, economic changes in Asia and | | | | the synthetic fibers which are used in the |
| increased global demand are cited as leading causes | | | | manufacture of many wigs and hairpieces. |
| for the price increases. | | | | Human hair wig and hairpiece prices are also rising, |
| Increased labor costs in Asian countries, where many | | | | primarily because of an increased global demand |
| wigs and hairpieces are manufactured are partially to | | | | driven by a greater acceptance and availability of |
| blame, along with the devaluation of the American | | | | human hair extensions on the market today. Human |
| Dollar. The endless supply of cheap labor in China and | | | | hair is considered a commodity and the cost of raw |
| India, which helped flood the world market with | | | | human hair fluctuates as all commodities do through a |
| inexpensive goods, is starting to dry up, said Diane | | | | direct relationship with supply and demand. |
| Swonk, chief economist at Mesirow Financial. China's | | | | On the brighter side, at least for retailers, is the news |
| Yuan has been steadily appreciating against the Dollar | | | | that human hair products and alternative hair are |
| at a rate of just less than 7% for the year. Faster | | | | gaining greater acceptance in the general public. |
| appreciation in the Yuan is likely to help offset | | | | Higher demand translates into higher prices and |
| inflationary pressures from a weaker Dollar and rising | | | | generates higher revenue at the retail level. |
| global commodity prices. | | | | |
