The threshold of solid wood custom furniture industry will improve the development of more standardized

September 08, 2025

"The industry reshuffle has become the most discussed topic in the second half of this year," Ajin said. He pointed out that market changes over the past two years have been significant, and it's no longer a time when companies could easily make profits. Only those with strong capabilities, unique selling points, and effective marketing models can survive, while those unable to adapt to market shifts are gradually disappearing. Whether it's the furniture industry in Shunde or China as a whole, a new transformation is urgently needed to overcome the current sluggishness. Some industry experts believe that property market regulations are not one-time events but rather part of an ongoing process. As such, the furniture industry must prepare for a long-term battle and seek new paths forward. Along the national road from Lecong to Longjiang, you can see multiple furniture factory billboards within just a few steps. Locals say that a furniture company needs at least 10 million yuan in annual turnover to afford such advertising. In Shunde, there are many such enterprises, some of which have been around for over a decade. Before 2000, most furniture factories in Shunde were profitable. "Back then, as long as you opened the factory, you basically made money," said Chen Sheng, a veteran in the industry. "You didnâ€™t even need to open stores or find dealersâ€”cars from all over the country would line up at the factory door to buy goods." He added, "At that time, gross profit was definitely over 50%. Now, itâ€™s hard to get more than 20%." According to reports, the gross profit margin for board wood furniture is around 20%, while solid wood furniture has slightly higher margins, ranging from 20% to 30%. However, net profit is generally around 5%. The profit from processing is even lower, with gross margins capped at about 15%. As the furniture industry grows to a certain scale, it often hits a ceiling. Many large furniture factories in the Shunde area, after reaching a certain size, tend to diversify their operations. They channel funds into sectors like steel, fabrics, real estate, and credit, with furniture becoming a smaller part of their overall business. However, representatives from the Guangdong Furniture Association noted that per capita furniture consumption in China is still far below that of developed countries in Europe and America, indicating a large potential for growth. In the future, competition will no longer be limited to manufacturing capabilities but will involve product development, marketing, branding, communication, and management. Zhang Yuncheng, an industry observer, believes that the Foshan furniture cluster has a relatively complete industrial chain and efficient distribution systems. However, the overall strength is still weak, and there's a need to fundamentally reverse this trend. He emphasized the importance of developing brand strategies and cultivating influential big brands to accelerate regional industrial upgrading. During the visit, the reporter found that although the environment is challenging, a small number of enterprises in Shunde continue to maintain stable growth. One top fabric sofa brand in Longjiang has found a new development path through channel innovation. Instead of opening stores or finding dealers, the brand hands over its channels entirely to top interior designers. Through designer projects, the products reach the market, and the brand pays a commission to the designers. According to the brand's representative, research showed that in high-end furniture sales, interior designers are often the most discerning buyers. "For example, when designers work on model houses, hotels, villas, or government offices, the target consumers are more likely to be influenced by the designerâ€™s choice than by store displays," they explained. "This increases the chances of successful sales." Through this designer-driven approach, the brand achieves hundreds of millions in annual sales and enhances brand influence. In addition, the marketing manager of a Lecong-based furniture brand believes that spreading risk through multiple channels is also an effective strategy. Their multi-channel model includes domestic and international markets, direct stores and dealers, as well as own-brand production and OEM. "Our main focus is on the dual-channel model of domestic and international markets," they said. Over the past few years, the brand has expanded both nationally and internationally. "We emphasize an international vision in our product design. After major exhibitions, more foreigners come to the show than Chinese buyers." The brandâ€™s annual sales are about 200 million yuan, with foreign sales accounting for three-quarters of total revenue. This year alone, the Japanese market placed orders worth tens of millions, while the Korean and Dubai markets also performed well. Domestically, the brand has adopted a multi-channel approach, combining dealers with direct sales stores.
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Packing Pallet/carton/wooden box packing

Packing

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