The cabinet industry has a big space in first-tier cities
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August 21 10:37:40, 2025
In the context of a booming real estate market, first and second-tier cities like Beijing, Shanghai, and Guangzhou have entered what's being called the "land king" era. Real estate developers are not backing down from investing in these major urban centers, and this trend is having a ripple effect on related industries, including the home building materials sector. The cabinet industry, though not entirely independent from the housing market, still finds value in targeting these high-potential cities, even when focusing on lower-tier markets.
First and second-tier cities have become a safe haven for real estate companies. The recent surge in land prices and property demand shows that developers are shifting their focus back to big cities. This strategic move has sparked interest across different sectors. Experts suggest that in an environment of slowing economic growth, the advantages of resource concentration, limited land availability, and stable economic development in these cities are becoming more apparent. As a result, the risks associated with rising house prices are also increasing.
For cabinet companies, navigating the first-tier market requires a thoughtful and adaptive strategy. These cities are known for their fast-paced lifestyles and high standards. Consumers here are not only looking for quality but also for style and innovation. Therefore, cabinet companies must align their product designs with current trends, emphasizing aesthetics and modernity. In a competitive market, continuous innovation is essential to stand out and meet consumer expectations.
The first-tier market is increasingly driven by design and creativity. Future demands on cabinet manufacturers will go beyond just production—they will need to establish comprehensive systems covering quality control, R&D, marketing, packaging, and after-sales service. Products must cater to diverse generations: meeting the refined taste of the 60s generation, the fashion-conscious preferences of the 70s, and the individualistic desires of the 80s.
Sustainability is also gaining traction as a key trend in urban living. Cabinet companies should prioritize eco-friendly and low-carbon products to align with this shift. This not only meets consumer expectations but also positions the brand at the forefront of the green movement.
Service in first-tier cities should mirror that of luxury brands. Companies should create a seamless, end-to-end service system—from product development and sales to logistics and after-sales support. Clear communication, transparency, and high-quality service can elevate the overall customer experience, bringing the standard of service in the cabinet industry to a more refined level.
In terms of distribution, the online model has become increasingly important in these cities. With the internet widely adopted, companies can enhance their online presence to gain a competitive edge. The O2O (online-to-offline) model is particularly effective in the home industry, enabling seamless interaction between online and physical stores. Some cabinet companies are exploring cross-border integration through e-commerce platforms, aiming to streamline product flow, logistics, and customer engagement, ultimately creating a more connected and efficient business model.