In Shanxi’s wooden door market, there are two main types of operators offering customized products: small-scale workshop-style door shops and larger enterprises specializing in engineered products. Typically run by husband-and-wife teams, these workshops generate annual profits ranging from $4,000 to $7,000 USD. On the other hand, dedicated wooden door manufacturing firms, which often work on engineering projects, see annual earnings typically between $42,000 and $140,000 USD. Overall, approximately 95% of Shanxi’s custom wooden doors are produced by these smaller workshop-style operations, leading to a highly fragmented and chaotic industry.
Under increasing consumer pressure to negotiate lower prices, the workshop-style shops have been forced to continually reduce costs, pushing down product prices and resulting in a market flooded with lower-quality goods. To combat this downward spiral, some formal wooden door producers have shifted their focus toward integrated home solutions, seeking to boost product value and profitability. Over the past few years, the trend toward integrated household consumption has grown significantly, giving rise to the “one-stop service†marketing approach. Many door companies are now expanding their product lines to include furniture and home accessories, with the goal of diversifying and tapping into the lucrative home furnishing sector. The allure of the full-home concept lies in its promising market potential. Last year, European cabinet sales maintained steady growth, while their new product line, wardrobes, saw over 50% growth. Brands like Shang Pinzhai have been offering home furnishings for seven years now, with over 400 stores across China, including just 14 in Guangzhou alone.
Despite the market downturn, several companies have experienced substantial sales growth thanks to their introduction of full-home offerings. It’s foreseeable that the full-home approach will become a key development path for the home industry. For businesses, selling full-home solutions not only boosts revenue but also supports long-term growth. For dealers, this model increases product variety and profitability. And for consumers, it saves both time and effort in decorating their homes.
However, not everyone is rushing to join this trend. Leading custom closet brand, Sofia, remains focused on the wardrobe segment. According to their marketing director, “Sofia did experiment with diversification in the past, launching products like Bond cabinets and Ivano flooring. However, Bond has since been sold off, and Ivano became an independent operation because the company believes it’s better to excel in one area rather than spread too thin.†Similarly, TATA wooden doors continue to focus solely on their core product in the e-commerce space.
Expanding into the full-home direction could be a strategic move for wooden door companies. They already possess the necessary production equipment to easily venture into related wood products such as staircases, wardrobes, and cabinets. Several successful examples of wooden door diversification exist. Yet, these companies must proceed cautiously, ensuring they deepen and refine their existing product lines before venturing further. Only then can they secure sustainable growth and maximize their market potential.
Hubei Chengze Diamod Products Co., Ltd. , https://www.ryomaltools.com