Analysis of China's Furniture Industry Zones


Release time:

2024-08-13

Over the past two decades, China's furniture market has seen its production capacity gradually concentrated into five major furniture factory industry clusters, which account for 90% of the country's furniture production. These regions are the Pearl River Delta Furniture Factory Industry Zone, the Yangtze River Delta Furniture Factory Industry Zone, the Bohai Rim Furniture Factory Industry Zone, the Northeast Furniture Factory Industry Zone, and the Western Furniture Factory Industry Zone.

 

The Western Furniture Industry Zone primarily targets the domestic market.

The other four zones—Pearl River Delta, Yangtze River Delta, Bohai Rim, and Northeast—are dominated by furniture export enterprises and large-scale manufacturers, serving as the main suppliers for both the Chinese market and furniture exports.

 

Among these, Guangdong and Zhejiang provinces stand out as the two main industry clusters for furniture production and export in China.

 

As of December 2023, according to surveys, there are a cumulative total of 2.457 million registered furniture manufacturing enterprises in China, with Guangdong Province leading the pack at 181,200 enterprises. This region has become a vital base for furniture production, support, and sales, forming a hub for both large and small furniture brands.

 

Jiangsu Province ranks second with 136,700 enterprises, followed by Shandong with 113,900, and Zhejiang with 90,700.

 

South China Furniture Industry Zone:

  • Region: Centered around the Pearl River Delta in Guangdong
  • Advantages: Industrial cluster, supply chain, and brand advantages Centered around Guangdong's regions such as Guangzhou, Shenzhen, Dongguan, Shunde, and Foshan, it is China's largest furniture industry zone. Proximity to Hong Kong and Macau, abundant labor resources, early start in furniture manufacturing, numerous industrial clusters, complete supply chains, developed sales markets, and prominent brand advantages contribute to its success. Furniture output accounts for one-third of the national total, with products initially exported to the Americas and Oceania, and more recently to Central Asia, the Middle East, and Russia.

Guangdong is the leading furniture production and sales hub in the country, leveraging its advantages and modern information technology to continuously improve the technological level of the furniture industry, maintaining its production and sales edge. Foshan's Shunde District has been developed into an integrated base for furniture production, sales, support, and wholesale, while Lecong Town has become a significant furniture distribution center in the south, and Longjiang Town is a key town for furniture and material production.

 

East China Furniture Industry Zone:

  • Region: Centered around the Yangtze River Delta
  • Advantages: Product quality and management excellence Centered around Jiangsu, Zhejiang, and Shanghai, this is the fastest-growing furniture region. With developed information, convenient transportation, deep cultural heritage, and a solid manufacturing foundation, it has a large furniture market capacity, high-quality products, and well-managed enterprises. Furniture output also accounts for one-third of the national total, mainly for export, with Europe and America as the primary export markets.

Taking Zhejiang as an example, the furniture industry in this province has shown rapid expansion, significant structural adjustments, clear regional patterns, diverse sales models, and an enhanced brand awareness.

 

North China Furniture Industry Zone:

  • Region: Centered around the Bohai Rim
  • Advantages: Enterprise scale and market demand Centered around Beijing, supported by Tianjin, Hebei, Shandong, and other places, it develops within the entire Bohai Rim economic circle.

This region has a long history of furniture manufacturing, abundant resources, and a superior geographical location. Furniture enterprises are large-scale, and the consumer group is significant. Mature furniture professional sales markets and marketing enterprises are concentrated, and the industrial chain is increasingly complete, with products mainly for domestic sales.

 

Northeast Furniture Industry Zone:

  • Region: Centered around the old industrial base in the Northeast
  • Advantages: Solid wood furniture production and timber resources Mainly along Shenyang and Dalian, radiating to the old industrial bases in the Northeast like Heilongjiang, relying on the rich timber resources of the Greater and Lesser Khingan Ranges and imported timber from Russia for solid wood furniture production. Solid wood furniture enterprises have a leading production capacity nationwide, mainly exporting to Northeast Asia and Europe, with a relatively small domestic market share.
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Western Furniture Industry Zone:

  • Region: Centered around Chengdu
  • Advantages: Supplying products to the third-tier markets The key development area is Sichuan's Chengdu, with furniture products supplied to the third-tier markets in central and western regions. The local government has listed the furniture industry as a pillar industry, increasing support and resolving issues for furniture enterprises in land acquisition, loans, and labor.
     

This industry zone, with its mature and convenient logistics infrastructure, is favored by coastal enterprises. With the continuous expansion of furniture demand in inland cities, the local furniture industry has gradually taken over the industrial gradient transfer from coastal areas, gaining market share with logistics advantages and forming an industry plan based on industrial parks.

 

In fact, it is evident from the development of China's furniture industry clusters that "industrial clusters" have various advantages for the development of the furniture industry.

  • They gather regional advantages to provide good resource allocation, sales markets, and channels for industrial development, making it easier for enterprises to obtain quality technical personnel, equipment, and raw materials.
  • They concentrate the competitive advantages of individual enterprises, improving the overall competitiveness of the industrial cluster through frequent exchanges of materials, energy, and information.
  • China's policy promotion and financial support are crucial. The development of regional industrial clusters is an effective way to promote rapid and efficient regional economic development. Establishing industry associations and building communication bridges can more effectively obtain policy and financial support and protection.
  • Enterprises have clear target audience positioning and more effective brand promotion. At the same time, industrial clusters are conducive to forming professional markets and establishing regional brands, giving enterprises regional marketing advantages. Industrial clusters, as a powerful carrier of regional economic development, are an effective way to improve regional economic competitiveness and an inevitable trend in the development of industrialization to a certain stage.