Guosen-Lily Classic Guosen-Lily Classic As the furniture industry in China continues to evolve, a new trend has emerged: the westward movement of eastern furniture companies. In particular, Sichuan-based enterprises from Chengdu are now taking a bold step by heading north to expand their market presence. This shift reflects a broader transformation in the domestic furniture landscape. Over the past few years, the migration of furniture manufacturers has become more dynamic. While Guangdong-based companies have been moving inland, Sichuan's furniture sector is pushing northward to tap into larger markets. This movement isn't just about location—it's about strategy, as companies look to diversify and grow beyond traditional regions. Sichuan, known as China's second-largest furniture production hub, has been actively exploring opportunities in the northern regions. For instance, Sichuan firms have established industrial parks in Xianghe, Hebei—a major furniture base—drawing other local companies to follow suit. Before that, they had already made inroads into Shaanxi. In Hebei’s Xianghe Furniture City, Sichuan brands now hold a 40% share, signaling strong market penetration. Similarly, Sichuan furniture has taken a significant portion of Wuhan’s “Chinese Furniture CBD.†The coastal furniture industry has long dominated first-tier cities, but Sichuan furniture has captured over 70% of the second- and third-tier markets. With coastal manufacturers turning inward, competition is intensifying. However, Sichuan furniture faces challenges in exporting due to higher transportation costs and distances. Expanding production to the north helps them better serve the domestic market and reduce these logistical barriers. At the same time, western furniture companies are not limiting themselves to the domestic market. They are adopting a dual approach: upgrading their domestic operations while also looking overseas through Yunnan’s seaways. With the ASEAN Free Trade Area fully operational since 2015, this presents a golden opportunity for Sichuan and other western furniture makers to enter Southeast Asian markets. Currently, the western region contributes around 10% of the national furniture industry revenue, showing steady growth. Liu Jinliang, vice chairman of the China Furniture Association, highlights that there is still significant potential for development in the west. To reach it, the industry needs to improve labor efficiency, increase profit margins, and further open up import and export channels.
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