[Dialogue] Penghong's Yang Zhiwei: Differentiated Operations in the Northern Market and the Blueprint for Future Growth

October 10, 2025 | Source: China Wood Industry Network News Department

Against the backdrop of increasingly fierce competition in the panelboard industry and significant regional market differences between North and South, Penghong, as a well-known brand in the industry, has drawn considerable attention for its operational strategies in the northern market, its product development direction, and its medium- to long-term plans. To further clarify the growth trajectory of Penghong’s core northern market base, China Wood Industry Network conducted an exclusive interview with Yang Zhiwei, Assistant to the General Manager and General Manager of North China Business Unit 1 at Penghong, during the Linyi Wood Expo. The conversation delved into key topics such as Penghong’s differentiated operational model in the northern market, its five-year development goals, innovative highlights in new product R&D, strategic channel expansion, and team-building initiatives—offering a comprehensive overview of the company’s strategic positioning and future vision for the northern region.

China Wood Industry Network: Hello, Mr. Yang. As a leading panel brand, Penghong’s operational strategies in the northern market, product development directions, and mid-to-long-term plans have drawn significant attention. Could you please share more about their specific business model?

Yang Zhiwei: The North is our core stronghold. In the Northeast region, we’ve adopted a directly operated warehouse model that combines the dual roles of a manufacturing plant and an operator-service provider, enabling us to directly supply products to frontline distribution channels. Meanwhile, our solid wood board business in Northeast China continues to follow the traditional, streamlined operational approach, while in peripheral areas, we’ve implemented a strategy where sales teams directly engage with furniture manufacturers—further enhancing our market competitiveness. The key advantage of this model lies in our strategically located production bases in cities like Shenyang, Fuyu, Dalian, and Linyi, giving us inherent strengths in logistics, transportation, and access to airport resources. In the North China region, operations in Inner Mongolia and Jinan closely mirror the Northeast’s approach. Moreover, Penghong enjoys a strong brand presence in the northern market. Leveraging the robust production capacity from our Northeast facilities, coupled with our superior logistics advantages and integrated raw material management capabilities, we’ve also successfully attracted a group of talented, young operators. Their active participation has significantly boosted the growth of our northern market, resulting in actual shipment volumes doubling this year compared to last year.

China Wood Industry Network: You've been responsible for the northern market for years—could you share some insights into product development and your new-product plans? For instance, what about the latest innovations showcased at this exhibition?

Yang Zhiwei: Penghong New Materials has been moving at a rapid pace in R&D—previously, we introduced patents for double-core boards and antibacterial & mildew-resistant technology. After restructuring our strategy and organizational framework over the past two years, our product lineup has become even more diverse. At this year’s exhibition, we unveiled the legendary series, crafted using premium-quality foreign-sourced paper and steel plates, combined with our extensive expertise accumulated over years of product development. Industry experts have given it high praise, as it’s specifically designed to elevate our brand identity with its high-end offerings. Another standout product is the Tea Fragrance Board, which incorporates tea polyphenols extracted directly from tea leaves into its manufacturing process. This innovative board not only boasts exceptional antibacterial and antifungal properties but also features functions like formaldehyde removal and aroma testing, with lab-tested antibacterial efficacy approaching an impressive 99.99%.

China Wood Industry Network: Today at the exhibition, we saw four product series—Legend, Master, Premium, and Champion. Are these series targeted at different channels? And what exactly is the positioning of each one?

Yang Zhiwei: Consumer demand is diverse, and we aim to meet the needs of different groups. That’s why we’ve categorized our products based on consumption scenarios and distribution channels. The Champion Series is our mainstream product line, targeted at the middle class—it’s our top-selling offering. Meanwhile, the Legend Series caters to high-end customers and premium studios, who have stringent requirements for patterns and designs, while also meeting the stringent environmental standards required for HENF heating-grade products. The Tea Fragrance Board, meanwhile, falls under the Champion Series. In addition to this, the Champion Series includes… Rubberwood The Legend series features superior paper and craftsmanship, along with higher environmental standards. In contrast, the Huimin series offers exceptional value for volume-based use, enabling more people to experience Penghong products—while all items in this line meet the stringent ENF environmental standard.

China Wood Industry Network: Regarding these new products—Legend, Masterpiece, Premium Selection, and Champion—how will you further strengthen your market channel strategy going forward? Will you consider opening brand-exclusive stores or exploring cross-industry collaborations?

Yang Zhiwei: Channel deployment will proceed in a series-based approach. For the Legend series, we’ll gradually establish exclusive boutiques that offer customers an immersive experience—think of them as miniature versions of exhibition showrooms—placing them strategically at front-end channel showrooms and terminal markets. At the same time, we’ll collaborate closely with designers by providing recommendations and hands-on training to empower them. As for the Champion series, we already have a robust nationwide network in place, seamlessly integrating it into our existing system. All we need to do is continuously refresh designs and iterate on products. Moreover, we’re already partnering with designer IPs and lifestyle brands, as well as local influencers and “shop-hopping” accounts. These partners are directly connected to consumers, helping us drive significant traffic. At the same time, we’re streamlining our distribution channels. Previously, we relied on multiple layers of provincial and city-level distributors, but now, by cutting out unnecessary intermediaries, we’re not only boosting efficiency but also enabling consumers to access products that offer exceptional value for money. Meanwhile, channel partners can enjoy higher profit margins as a result.

China Wood Industry Network: Some lifestyle-themed events in the industry have proven quite effective. Has Penghong already tried any similar scenario-based experiences, such as a shared showroom model?

Yang Zhiwei: Yes, consumer acquisition channels have shifted—traditional hypermarkets no longer attract much foot traffic. That’s why we’re setting up large-scale showrooms in conveniently located, cost-effective areas, offering customers a hands-on experience while also providing designers to deliver seamless, one-stop services. In Shandong, we’ve even piloted a shared showroom model. Some distribution channels are hesitant to collaborate because they worry about losing direct orders. But our shared showrooms don’t take orders directly—they instead distribute the projects to our partner designers and studios. This way, these partners can showcase our products and brand within their own spaces. We handle the entire service chain for them, from measurements and color selection to design, installation, and after-sales support. For instance, a 300-square-meter showroom houses 18 designers—9 of whom are part of our team, while the other 9 operate under the shared model. This innovative approach effectively addresses a common pain point: many studios may have orders but lack design capabilities; others have designs but no showroom space; and still others have showrooms but struggle to build brand recognition.

China Wood Industry Network: Does Penghong have a five-year plan for its Northern Region? What are the objectives?

Yang Zhiwei: "Northern planning first focuses on strengthening Northeast China, aiming to make it the absolute leader. From there, we’ll leverage Northeast China’s influence to radiate and boost both North China and Northwest China—our two major regions. Within the next five years, we plan to fully expand into the national market. Currently, the Northern region already holds the top position. Moving forward, while maintaining our current market share, we’ll continue breaking new ground in niche channels and specialized product segments. Our goal isn’t just to lead in sales volume—we also aim to spearhead industry transformation in the North by excelling in product innovation, pioneering new business models, strengthening organizational development, and integrating industrial capabilities. "We already enjoy distinct advantages in branding, capital, and operational expertise. Historically, the North has prioritized production and quality, though its marketing efforts have been relatively weaker. Now, with our Southern team stepping in to integrate and enhance these areas, our collective strength will only grow stronger. This recent panelboard exhibition was a great example of that synergy, as many key stakeholders across the Northern industry chain—and even the event organizers themselves—commended the show highly."

Relying on its production base, logistics network, and strong brand presence in the northern market, Penghong has established a differentiated operational model. In terms of strategic planning, Penghong is focused on solidifying its position in Northeast China while expanding its reach to North China, Northwest China, and eventually achieving nationwide brand leadership. The company aims to spearhead industry transformation through innovations in product development—such as the legendary series and tea-scented boards—as well as groundbreaking advancements in business models. On the channel strategy front, Penghong is enhancing market coverage and elevating customer experiences by promoting diversified product-channel strategies, piloting shared showrooms, streamlining distribution channels, and fostering cross-industry collaborations. Looking ahead, Penghong is poised to further strengthen its leading role in the northern market. Combined with its growing influence in the southern market, the company’s vision of driving high-quality development in the panelboard industry undoubtedly holds great promise for the future.

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