Breaking Through the Cold Winter! Xiao Yao Board Materials Overcome the Challenges of Survival During the Industry Adjustment Period by Leveraging Product Strength, Supply Chain Capabilities, and Value Co-creation.

December 3, 2025 | Source: News Department, China Wood Industry Network

In recent years, the cooling effect of the deep adjustment in the real estate market has continued to ripple down through the downstream industrial chain, and the panelboard industry is now facing an unprecedented stress test: on the demand side, consumer confidence remains weak, and order volumes are increasingly volatile; on the supply side, raw material costs remain stubbornly high, and homogeneous competition has plunged the industry into a price-war quagmire. Coupled with tightening environmental standards and rising demands for the development of new-quality productivity, the industry’s pace of elimination has clearly accelerated.

In such a challenging market environment, how to safeguard the core business and find new growth drivers has become a critical survival issue that all panelboard enterprises must address. However, despite these difficulties, small-scale panelboard manufacturers have delivered a solid performance this year through strategies such as product differentiation, supply-chain optimization, and shifting their role upstream, achieving both steady growth and strategic breakthroughs—and successfully carving out a differentiated path in the fiercely competitive "red sea" of existing-market rivalry.

Recently, the “Artisan’s Journey Across Ten Thousand Li” team from China Wood Industry Network traveled to Nanning, Guangxi, following this impressive achievement. There, they engaged in an in-depth conversation with Xiong Liang, Chairman of Xiao Yao Lan, and Mei Jianglong, General Manager, jointly exploring how Xiao Yao Lan has remained true to its original aspirations through artisanal dedication and broken through industry challenges with innovation during this period of sector adjustment.

Product capability upgrade: A leap from meeting needs to leading them.

Product strength is the core of an enterprise’s survival and development. Xiao Yao Lan has always firmly believed that high-quality products not only meet existing needs but also lead new ones. In 2025, with a product portfolio characterized by “embracing all rivers” and manufacturing processes marked by “pursuit of excellence,” the company will drive a leapfrog improvement in product strength and redefine the value standards for high-end boards.

“Embracing All Rivers” is reflected in the comprehensiveness and inclusiveness of our product portfolio. To cater to today’s diverse home-decor styles, Little Cradle has built a product system comprising ten major series and hundreds of different designs—ranging from modern minimalism and light luxury to neo-Chinese and wabi-sabi aesthetics; from widely popular models to niche, custom-made options—thus fully covering various consumption scenarios and aesthetic needs. Through research, Little Cradle has found that today’s consumers have increasingly strong demands for personalized home styles, and single-style products can no longer meet market needs. Therefore, Little Cradle is committed to creating an all-encompassing collection of board finishes, enabling designers and homeowners to make material choices without compromise and truly achieving “the ideal home—all in one stop.”

“Striving for Perfection” represents Xiaoyao Lan’s relentless pursuit of product quality. In terms of manufacturing processes, this year the company has focused on upgrading its wood-grain embossing technology. By employing high-precision laser scanning and multi-layer embossing techniques, it achieves a “1:1 replication” of the texture of natural solid wood. Whether it’s the direction of the grain, the intricate details of knots, or the tactile feel of bumps and indentations, everything closely matches that of high-end solid wood panels. At the same time, Xiaoyao Lan translates its pursuit of “beauty” into products through technological means. By optimizing the internal structural design of the boards, the company has not only reduced their weight but also significantly enhanced their load-bearing and bending resistance, thereby addressing the longstanding pain points of traditional boards—being both heavy and prone to deformation.

To ensure that every board leaving the factory meets exceptional standards, Xiao Yao Lan has established a comprehensive, high-standard quality control system covering the entire supply chain—from raw material inspection upon arrival to in-process checks during production and final product verification before shipment. This rigorous, end-to-end quality control is not only a steadfast commitment by Xiao Yao Lan to its brand’s quality philosophy but also a solemn promise to the market and its consumers.

In 2025, the Guangdong Operations Center and the Foshan Warehouse of Xiao Yao Lan will officially go into operation, marking a crucial step in the company’s multi-warehouse strategy of “South China + Southwest China.” This layout not only represents a proactive response to the national policy of “maintaining the stability and smooth flow of industrial and supply chains,” but also serves as an important initiative for the company to adapt to market changes and enhance customer experience, laying a solid foundation for future nationwide market expansion.

In the current market environment, the stability and efficiency of the supply chain directly impact a company’s competitiveness. By adopting a “small cradle” multi-warehouse layout, the core objectives are to “be closer to the market, optimize logistics, and diversify risks.” Today, by establishing warehousing centers in regions such as Guangdong and Guizhou, Xiao Yao Lan has achieved close proximity coverage of key urban clusters in South China and Southwest China, significantly shortening product transportation distances. This not only enhances customer satisfaction but also helps downstream custom furniture companies reduce their production cycles and strengthen their market competitiveness. Meanwhile, through the coordinated operation of multiple warehouses, Xiao Yao Lan can implement a flexible supply model characterized by “small batches and multiple shipments,” thereby meeting the diverse and personalized order demands of downstream customers and avoiding the inventory buildup issues inherent in traditional supply models.

Faced with the challenges of inventory management and cost pressures that may arise from multi-warehouse operations, Xiao Yao Lan has implemented three key measures to achieve efficient control: First, it has established a large-scale centralized procurement system, which reduces raw material costs and enhances bargaining power through centralized purchasing; second, it has introduced an intelligent inventory management system that enables real-time sharing of inventory data across warehouses and supports smart inventory reallocation, thereby optimizing inventory turnover and reducing inventory buildup; third, it has developed a scientific inventory early-warning mechanism that adjusts inventory levels promptly in response to changes in market demand, ensuring a balance between supply and demand.

Role Transformation: From Product Supplier to Value Partner

Against the backdrop of intensifying industry competition and shrinking profit margins, Xiao Yao Lan has deeply realized that relying solely on product sales is no longer sufficient to maintain a competitive edge in the market. This year, Xiao Yao Lan simultaneously launched a strategic upgrade, transforming from a “single-sheet material supplier” into a “one-stop supply chain service provider for high-end, whole-house custom materials.” By offering end-to-end value-added services to downstream customers, Xiao Yao Lan aims to build a mutually beneficial industrial ecosystem and make the leap from selling products to providing services.

“We found that downstream custom furniture companies not only need high-quality boards but also require matching hardware.” Edge banding We provide a comprehensive range of services, including materials, design support, and technical guidance. Based on this demand, we have integrated upstream and downstream resources to launch a one-stop service system featuring “boards + hardware + edge banding + design solutions + technical training,” offering customers all-around support. By establishing strategic partnerships with well-known hardware brands and edge-banding companies, Xiao Yao Lan ensures complementary product supply, helping customers reduce both procurement costs and time expenditures. At the same time, we have assembled a professional design team that provides customers with advice on matching home styles and suggestions for selecting board patterns, thereby enhancing their products’ competitiveness. We also regularly organize technical training sessions, inviting industry experts to share knowledge on board processing techniques and installation tips, thus resolving technical challenges faced by our customers during the production process.

“We’ve moved beyond a simple buyer-seller relationship and have become our customers’ ‘value partners.’ By creating greater value for our customers, we’ve also earned their trust and secured long-term partnerships—this is the key to our ability to grow against the grain even during industry downturns.” This transformation has not only enhanced Xiao Yao Ban’s own risk resilience but has also fostered deep, lasting ties with downstream customers, enabling mutual development and growth.

Although the depths of winter have yet to lift, Xiao Yao Lan’s board materials are forging a path forward amid the fog of intense competition in the existing market—empowered by three key strengths: product excellence, a robust supply chain, and mutually beneficial value creation. Looking ahead, Xiao Yao Lan aims to become a leading enterprise in high-end, eco-friendly home materials in Southern China, steadily advancing along a trajectory that emphasizes product deepening, industrial integration, brand valorization, and nationwide market expansion. This strategic plan is far from being merely an isolated endeavor for one company—it serves as a vivid model for the industry’s transformation from “speed-driven” to “quality-driven,” illuminating a beacon of guidance and inspiration for the home furnishings sector’s journey toward superior quality.

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