Nowadays, domestic brands frequently occupy the consumer market and play a positive role in the development of our country. Domestic products have experienced a downturn, however, after the continuous development of my country’s comprehensive strength, domestic brands have regained their footing in the consumer market. For the long-term interests of our country and national development, domestic brands now need to rise in the consumer market for a long time. Domestic brands need to adapt to the new consumption environment and get rid of the old stereotype through design innovation. The consumption environment is a complex and messy dynamic system that has an impact on domestic brands from many aspects. Through SET theory, this paper extracts the influencing factors of domestic brand design innovation from social, economic, and technical aspects, and then establishes an ISM model to analyze and sort out the relationship of various influencing factors to design innovation of domestic brands, to provide key suggestions for the long-term development of domestic brands.