Design Management in Mainland's Manufacturing Industry

Team  Prof. LIU Xihui, Prof. John HESKETT

School of Design

Prof. John Heskett and Prof. Liu Xihui initiated a research programme on Design Management Capability (DMC) which aimed to describe and define design management in China. The DMC framework positions design not just as product styling, but as a strategic tool guiding business planning, product innovation, market positioning, and long-term competitiveness. Their research guided businesses in upgrading from manufacturers to brand owners by strengthening innovation capabilities, developing new business models, and enhancing overall competitiveness.

The research has influenced China’s two main innovation policies at national level: the Innovation Design section of Made in China 2025 (published in 2015), and the 2016 Action Plan for Digital Creative Industries in the 13th Five Year Plan, with related industry guides for disseminated to every province; and supported international manufacturing collaboration through the One Belt One Road initiatives (2017 - 2019).

Its impact also reflected in commercial success. Adoption of new business models helped transform two traditional small and medium-sized enterprises in Guangdong into top brands in China’s furniture industry—one company’s annual sales revenue increased by over 400% and now exceeds HK$7billion, while the other achieved a 70% increase in sales revenue in the relevant part of its business and has become one of China’s Top Ten office furniture brands. These transformations not only drove growth, but also reduced waste, and elevated design as central force in sustainable manufacturing.

RAE 2020 Impact Case Study