The industry’s split is most evident in financial performance across enterprises. Leading upholstered furniture maker Kuka Home reported 8.77% revenue growth and 13.24% net profit increase in the same period, while healthcare-focused Mengbaihe saw a staggering 205.18% surge in net profit. In contrast, custom furniture giant Oppein Home saw revenue decline 4.79%, and smaller players like Pi’ano suffered a 37.27% revenue drop amid squeezed margins. “This divergence reflects a market transitioning from real estate reliance to multi-dimensional growth drivers,” noted Tang Xingtong, a digital commerce innovation consultant. “Brands failing to adapt to consumer demands for quality, intelligence, and personalization are losing ground.”
Overseas expansion has emerged as a critical lifeline for top performers. Chinese furniture exporters are shifting from lightweight trials to heavy-asset investments, with leading brands establishing localized production and distribution networks. Kuka Home invested $112.4 million in an Indonesian manufacturing base, while Sofia has partnered with developers across 31 countries to provide one-stop customization solutions. Guangdong, Jiangsu, and Zhejiang provinces—China’s top furniture production hubs—are leveraging digital logistics platforms to streamline exports: Ymm, a leading digital freight platform, reported that its smart matching system has cut domestic transportation time for furniture bound for ports by 22%. “Overseas markets aren’t just sales channels—they’re new narratives for growth,” Tang added.
Technological innovation and sustainable practices are further widening the gap between leaders and laggards. Top commercial furniture brands like Sunon and 华盛 (Huasheng) have integrated AI scheduling systems and flexible production lines, reducing order delivery times by over 30%. Green materials are no longer optional: zero-formaldehyde boards and recycled aluminum are now standard in premium product lines, with 80% of award-winning commercial furniture incorporating eco-friendly components. Meanwhile, smart home solutions are gaining traction—cities like Yulin and Zhengzhou recorded surging demand for intelligent toilets, reflecting a broader shift toward tech-integrated home goods.
Domestic consumption, though growing, presents its own challenges. While China’s furniture retail sales rose 22.0% year-on-year in the first eight months of 2025, profit margins remain under pressure due to raw material volatility and intense competition. Successful brands are responding with omnichannel strategies: live-streaming sessions drive online traffic, while physical stores offer immersive experiences to close sales. (Kuka Home) has pioneered this model, combining international designer collaborations with AI-powered space planning tools to boost average order value.
Supply chain efficiency has become another battleground. Digital logistics platforms are transforming how furniture moves across borders and continents. Ymm’s data shows that furniture transport peaks in January, August, and September, aligning with consumer spending cycles, while ceramic exports to Central Asia are routed through Xinjiang hubs to optimize cost and speed. “Digitalization is turning supply chains from cost centers into competitive advantages,” said an Ymm representative at the Canton Fair, where the platform showcased its ability to connect 3.16 million monthly active shippers with 4.3 million drivers.
Looking ahead, industry experts predict the polarization will deepen. The China National Furniture Association urges enterprises to focus on differentiated positioning, warning against “involutionary competition.” With overseas markets maturing and domestic demand evolving, brands that combine technological innovation, sustainable practices, and global footprint will dominate the next phase of growth. “2025 is a turning point,” said Wang Jianguo, a supply chain strategist. “The furniture industry is no longer about making products—it’s about delivering integrated, sustainable lifestyle solutions.”
