The most stolen products in South Africa

Wigs and hair extensions are the most frequently stolen imported products in South Africa’s ports, largely due to the country’s growing informal beauty industry.

This is according to author and informal economy expert GG Alcock, who revealed this in a recent episode of the Standard Bank Talks series.

Alcock pointed to a 2022 article by Hollard, which reported a growing demand for wigs, hair extensions, braids, and weaves in South Africa’s illicit trade market.

Hollard’s at-the-time senior business development manager, Marika van Rhyn, described imported extensions as the new “black gold”, a phrase which was once associated with coal.

“There are various types of hair extensions, such as human, synthetic, and even animal hair products, and they are mainly imported from China, Brazil, Mozambique, and India,” Van Rhyn said.

“There has been such an increase in demand for hair extensions in South Africa that the theft of extensions is becoming more and more frequent. Once stolen, it is sold illegally and is very fast-moving.”

At the time of the article’s publication, the global hair extension industry was valued at $2.35 billion (R37.48 billion), with a projected growth rate of 11% per annum.

Between 2018 and 2022, the value of hair extensions imported into South Africa increased by 64% to R1.1 billion per year.

Van Rhyn explained that the complex manual processes used to make these products, as well as the high demand for them, greatly increased their worth.

Reports indicate that individual wigs and hair extension pieces can cost up to R20,000.

“The hair must be sourced, cut, trimmed, soaked, and stained,” Van Rhyn explained. “It’s quite a time-consuming process and a very manual process.”

“Then there is the shipment and storage cost and, of course, the insurance premium. All of these contribute to the final delivery price.”

Additionally, Van Rhyn revealed that there is a high fire risk with hair extensions due to the large number of stock being stored together.

This, she said, was why wigs and hair extensions accounted for a significant portion of marine insurance claims, with Hollard reporting a 37% increase in these claims in one year.

South Africa’s growing informal beauty sector

According to Alcock, the rise in wig and hair extension theft at South Africa’s ports is indicative of the growth of the country’s informal beauty industry.

He said this industry, which has been nicknamed the “amasaloon” sector, is worth R10 billion a year.

Alcock said this presented growth opportunities for large corporations such as Unilever and encouraged investors to pay close attention to near-term trends in the sector.

“It’s booming. The trend is there is more and more growth in terms of beauty, such as wigs, hair extensions, lashes, nails, and so on,” Alcock said.

“So if you are wanting to invest in that beauty and personal care sector, understand those trends and what is driving them.”

Specifically, Alcock said focus should be placed on near-term trends which are set to take place over the next two to three years, rather than five or ten years down the line.

Numerous informal beauty salons have opened up across South Africa’s major cities in recent years, often mirroring the structure of formal businesses.

These salons are run by what Alcock has termed “kasipreneurs”, entrepreneurs who have built successful businesses outside of the country’s formal business environment.

Nompilo Mdlalose is one such kasipreneur who founded her own beauty and care business, Centia Beauty Salon, in Pretoria Central, which Daily Investor recently visited.

The salon brings in between R500 and R1,200 a day, selling professional nail services, lash extensions, and hair and wig installations, among other services.

The growth of these businesses has exacerbated the theft of wigs and hair extensions, with much of it occurring when the goods are offloaded at the port or in hijackings en route to their destination.

Van Rhyn said much of the theft occurs at Durban’s ports, as this is where much of the cargo travelling to Johannesburg comes through, which is where the country’s illicit trade market is centred.

“We have certain hotspots in South Africa, specifically distribution centres in the Johannesburg area,” Van Rhyn said. “So those are the most common incidents.”