The cabinet industry has a big space in first-tier cities
August 21 10:11:23, 2025
In the current real estate landscape, first and second-tier cities such as Beijing, Shanghai, and Guangzhou are experiencing a "land king" trend. Developers continue to invest heavily in these major urban centers, seeing them as key growth areas. The home building materials industry is closely tied to the housing market, and the cabinet industry in China is not entirely detached from this dynamic. Even when companies focus on lower-tier markets, tapping into the consumer potential of big cities remains a lucrative opportunity.
First and second-tier cities have become a safe haven for real estate developers. The recent surge in land prices reflects a strategic shift toward these metropolitan areas. Experts suggest that with slowing economic growth, the advantages of resource concentration, limited land supply, and stable economic performance in top-tier cities are becoming more evident. This environment makes these cities attractive for both investors and businesses, despite the rising risks associated with high property prices.
For cabinet companies looking to re-enter the first-tier market, it’s essential to adapt to the unique dynamics of these cities. One key approach is to align product design with the latest fashion trends. These cities are known for their fast-paced lifestyles and high aesthetic standards. Companies must stay ahead of the curve by offering innovative, stylish, and consumer-friendly products. In a competitive market, continuous innovation is crucial to stand out and meet evolving customer preferences.
The demand in first-tier cities is shifting towards design and creativity. Future expectations for cabinet companies go beyond just manufacturing products—they must also build comprehensive systems covering quality control, R&D, marketing, packaging, and after-sales service. Products need to cater to different generations: the elegance of the 60s, the style of the 70s, and the individuality of the 80s. Meeting these diverse tastes requires a deep understanding of consumer behavior and a flexible business model.
Sustainability has also become a key trend in urban fashion. Cabinet companies should prioritize eco-friendly and low-carbon production methods to align with modern values. This not only meets environmental standards but also enhances brand appeal among conscious consumers.
Service is another critical factor in first-tier cities, where customers expect luxury-level support. Companies should establish a full-service system that includes product development, logistics, sales, installation, and after-sales care. Clear, transparent service standards help build trust and elevate the overall customer experience, turning routine interactions into memorable ones.
Lastly, digital transformation is reshaping the market. With the internet widely adopted, online models offer new opportunities for growth. O2O (Online to Offline) strategies are proving effective in the home industry, allowing companies to combine the strengths of both online and offline channels. Some cabinet brands are exploring e-commerce integration, aiming to create a seamless flow between online sales, physical inspections, and customer engagement. This approach not only improves efficiency but also strengthens brand presence in the competitive first-tier city market.