Canada Wood Today | The Canada Wood Group

Five furniture industrial bases in China, account for 90% of China’s furniture production capacity

Dora Xue

By Dora Xue

October 2, 2017

There are five furniture industry bases generated in China, after years of development in furniture industry. They are:

  1. Pearl River Delta Furniture Industrial Base
  2. Yangtze River Delta Furniture Industrial Base
  3. Bohai Sea Rim Furniture Industrial Base
  4. Northeast China Furniture Industrial Base
  5. Southwest China Furniture Industrial Base

The first four bases are mainly consisting of furniture importing and manufacturing companies, which supply domestic and overseas markets. Whereas the fifth one – the West China Furniture Industrial Base targets domestic market.

The Five Furniture Manufacturing Regions of China.

1. Pearl River Delta Furniture Industrial Base

Representative cities: Guangzhou, Shenzhen, Dongguan, Shunde, Foshan

Advantages: industry cluster, industry chain and brand advantage

The Pearl River Delta Base is the biggest furniture industrial base in China. This area is close to Hong Kong and Macau, sharing abundant labour resources. As a result of long history of furniture manufacturing, it gathers lots of industry clusters with completed supply chains, well-developed market and brand advantage. The output value of furniture accounted for one third of the country. Most products are exported to Americas market.

2. Yangtze River Delta Furniture Industrial Base

Representative cities: Jiangsu Province, Zhejiang Province, Shanghai

Advantages: high product quality and operation management

The Yangtze River Delta Furniture Industrial Base is the fastest growing cluster in China. This area enjoys a good manufacturing foundation, including: a well-developed infrastructure, distinctive history and culture, and highly educated and qualified labour. The furniture market in this area has distinctive features, such as huge capacity of high quality products and well-managed companies. The output value of furniture accounted for one third of the country’s total. Most products are exported to the Americas and European markets.

3. Bohai Sea Rim Furniture Industrial Base

Representative cities: Beijing, Tianjin, Hebei Province

Advantages: company scale and market demands

The Bohai Sea Rim has a long history of furniture manufacturing, abundant resources and a convenient location. The size of furniture companies, in general, is large. The group of consumers is huge as well. Mature and professional sales market and intensive companies make the industrial chain increasingly improved and perfect. The products mainly are sold to the domestic market.

4. Northeast China Furniture Industrial Base

Representative cities: Shenyang, Dalian

Advantages: solid wood furniture and wood resources

As this base is close to Russia and has plenty of forest resources, it focuses on developing solid wood manufacturing. It is the leader of solid wood manufacturing in China and mainly exports to Northeast Asia and European markets, taking a smaller domestic market share.

5. Southwest China Furniture Industrial Base

Representative cities: Chengdu and Chongqing

Advantages: supply 3rd level market

Chengdu of Sichuan Province is the priority area of Southwest China Furniture Industrial Base, supplying furniture to 3rd-level market in mid-west China. The local government takes furniture industry as a pillar industry. It increasingly supports the industry, issuing relevant preferential policies and solving problems faced with furniture companies such as, land expropriation, bank loan and labour. The mature and convenient logistics foundation of this industrial base is preferred by coastal companies, plus increasing demand for furniture from inland cities as fast development. The furniture companies there win market share by taking the advantage of convenient logistics.

We can see China’s furniture is a mature industry with a huge market and many consumer groups, and competitive labour costs. In addition, over 30% of wood used in China goes into producing furniture, doors and windows. It is a good opportunity for Canadian wood industry to move up the value chain by offering higher grade products to this sector. This is also one of the strategic priorities of Canada Wood China for 2017/18.