A set of lights showcased at the China (Guzhen) International Lighting Fair in Zhongshan, South China's Guangdong Province, on October 22, 2021. Photo:VCG

In the heart of Zhongshan City, Guangdong Province, lies the town of Guzhen, the largest lamp production and distribution hub in China. From small light bulbs and lampshades to streetlights, landscape lights and home decor lamps, all can be bought at Guzhen.

Known as the "Lamp Capital", the small town covers an area of approximately 50 square kilometers and accounts for about 70 percent of the domestic lamp market. Its products are exported to more than 130 countries and regions.

Guzhen is now a shining example of the continuous growth and development of China's private economy, playing a vital role in reigniting economic recovery.

Thriving industry hub 

The development of the lighting industry in Guzhen began in the early 1980s. With the focus of the local government on industrial development and real estate expansion, the lighting industry gradually gained a foothold in the domestic market.

In 2002, Guzhen was awarded the title of "China Lighting Capital" and became a well-known lighting town domestically and internationally. According to the annual report published by the China Lighting Appliances Association in 2014, Guzhen lights accounted for 70 percent of the nation's market share.

Over the past nearly 30 years of cultivation and development since 1982, Guzhen has emerged as one of the world's major lamps hub and the largest lamps production base and wholesale market in China. 

"The secret of our success is our highly integrated supply chain, with design and technical research and development resources concentrated in the region," Zhou Jintian, deputy head of Guzhen town, told the Global Times on Thursday.

According to Zhou, the town has approximately 71,000 market entities. "There are many companies that process light parts, and as long as they have their own ideas and designs, they will soon be able to make it a lighting product," he added. 

The town also attaches great importance to innovation and intellectual property protection. Zhou noted that the town has established the first national intellectual property protection center for a single industry in 2011, which has helped alleviate concerns regarding innovation.

As of 2022, the town formed three well-known Chinese trademarks and applied for 10 famous trademarks in Guangdong Province.

Expansion abroad 

Guzhen lamps not only enjoy a strong presence in the local market, but also had a significant global footprint. Nearly half of the lamps produced  are sold abroad and exported to more than 130 countries and regions. 

In 2018, the market procurement innovational pilot project was launched at Lihe Lighting Expo Center in Zhongshan city, making it the fourth batch of national-level market procurement pilot project, acting as a resemblance to the well-known Yiwu small-commodities model.

Various tax preferential policies and export facilitation measures have provided great convenience for small and medium-sized lamps enterprises to expand their presence in the international market.

"This platform has been helpful for overseas exports. It has effectively bridged the last mile for us. From customs clearance to customs inspection and tax refund issues, we can solve all related issues in one go," Xie Wei, Chairman of Sover Lighting, told the Global Times on Thursday.

It brings the town's lighting industry cluster to a higher dimension, and helps increase international buyers' awareness of Guzhen products, he noted.

Given weak consumer demand in the west, the lamp makers in the town have taken the initiative to target emerging markets along the Belt and Road Initiative, such as the Middle East, Africa, Central Asia, Russia and South America, according to Zhou.

"Every year, we organize our teams to participate in exhibitions abroad. As a result, our export sector has remained stable. In fact, in the first half of this year, our export growth rate ranked first in Zhongshan city," Zhou said.

Despite facing multiple pressures, Zhongshan City's foreign trade reached a new high in 2022. According to customs data, the total import and export value of Zhongshan reached 279.87 billion yuan ($38.66 billion), a year-on-year increase of 3.9 percent. The export of lamps and related components increased 24.9 percent.

Promoting innovation

As China's manufacturing industry keeps climbing the ladder, the lighting industry is evolving and adapting to new opportunities.

Zhou observed that there is a significant increase in the number of invention patents over the years. "Previously, we would have around 20 invention patents registered every year, now we have hundreds of them," Zhou said.

The town is also focusing on advanced digital transformation to upgrade its production process and procedure. 

"For instance, we are introducing robotic automation equipment to enhance the efficiency of our operation. This allows our products to be produced more effectively," Zhou said.

The town is also actively holding cultural and tourism events such as the Lantern Festival Carnival, which has taken the development of ancient folk culture to new lights manufacturing. 

The next phase could be the development of special lights for cultural events and local tourism, according to Xie.

"We have noticed increasing market demand at home and abroad for our creative products. To embrace this new market opportunity, we are determined and will try to be more competitive in the market," Xie said.