Guosen-Lily Classic Guosen-Lily Classic As the furniture industry in China continues to evolve, a new trend is emerging: the westward shift of furniture manufacturers. While traditional coastal regions like Guangdong have been moving their operations inland, Sichuan-based companies, particularly those from Chengdu, are now heading north in search of new opportunities. This movement reflects a broader transformation within the furniture sector, where regional players are expanding beyond their traditional markets to capture a larger share of the domestic and international landscape. Sichuan, recognized as the second-largest furniture production base in China, has been actively pursuing industrial relocation. Many Sichuan furniture firms have started setting up manufacturing parks in northern regions, especially in Hebei’s Xianghe, a major furniture hub. These efforts have helped attract more local businesses to the area, with Sichuan brands now holding a significant 40% market share in Xianghe Furniture City. Similarly, Sichuan furniture has made its mark in Wuhan's "Chinese Furniture CBD," further demonstrating its growing influence across the country. The coastal furniture industry has long dominated first-tier cities, but Sichuan furniture has taken control of over 70% of the second- and third-tier markets. As the coastal industry shifts focus back to the domestic market, competition between these two regions is intensifying. One of the challenges for Sichuan furniture has been the high cost and distance involved in exporting products overseas. To overcome this, many companies are choosing to expand their production bases to the north, aiming to strengthen their domestic presence and reach new customers more efficiently. In addition to expanding into the domestic market, western furniture companies are also exploring international opportunities. By leveraging Yunnan’s access to Southeast Asia, they are beginning to tap into the ASEAN market. With the full implementation of the ASEAN Free Trade Area in 2015, this presents a golden opportunity for Sichuan and other western furniture companies to increase their global footprint. Currently, the furniture industry in the western region contributes about 10% to the national total, showing strong growth potential. Liu Jinliang, vice chairman of the China Furniture Association, highlights that there is still much room for improvement. Western furniture companies need to boost labor productivity, improve profit margins, and open up import and export channels to fully realize their potential in both domestic and international markets.
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