Tricky switch to lighting a new world

LED lighting manufacturers need more land to build factories for business expansion, he says.

"But now, you see, Guzhen has a shortage of land. It cannot support business growth for local lighting industries.

"Guzhen does not enjoy advantages in land resources, professionals and preferential policies (offered in other parts of the country). That's why there are not many big LED lighting makers in the township."

Many lighting manufacturers in Guzhen were first established as family workshops, he says, and some have made little progress in industrial upgrading, he says.

"After they made money, some manufacturers in the township turned to the real estate market. They tended to invest more in property rather than in upgrading the lighting business."

Recognizing this challenge, Guzhen's local government has established a production promotion center to help train and introduce professionals in the LED sector, as well as provide intellectual property rights protection for local manufacturers.

The township also plans to build a lighting institute to develop expertise and to organize an annual international lighting design competition to help boost local manufacturers' competitiveness in the global market.

"In the past, you would consider a Guzhen brand when you bought a lamp," Pan says. "But now you think of international brands when you buy a LED lighting product."

He has called on local businesses to learn more from leading domestic and international competitors about investment in technology and design.

Cooperation with the world's new LED buyers and designers will help lighting enterprises in Guzhen diversify their sales channels and boost competitiveness, Pan says, and international lighting fairs, such as the annual Guangzhou International Lighting Exhibition, will be crucial in that process.

"More importantly, leading international LED lighting manufacturers will show off their latest designs and technology at the fair, which will be helpful for domestic small and medium-sized enterprises to study."