Mainland China Pendant Lamps Gains Come After Pain

Mar 29, 2005 Ι Industry News Ι Lighting & LEDs Ι By YUEJIAN LEE, CENS
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Yongxin`s Modren Pentant Light

Lighting is still a sunrise industry in China and has achieved considerable growth in recent years. Pendant lights are playing a role of increasing importance. Though hit as others by skyrocketing prices for raw materials last year, makers have lessened the impact by developing more novel products-and more of them--improving labor productivity and other measures. Consequently they've retained extant customers' trust, developed new customers, and continued on their existing course of steady growth.

Nanhai Yongxin Lighting Factory, established in 1990 in Foshan City, Guangdong Province, specializes in the manufacture of a variety of high-end lighting products including pendant lights, wall lamps, table lamps, and tracklights, which are primarily sold to more demanding/discerning European markets such as Germany and Spain. The firm is now hard at work developing the North American market.

Zhaowen Song, general manager of Yongxin Lighting, states that, "We have some new, modern-style pendant lamps now under development--simple and elegant, and movable up and down. We strive to introduce new selections each month so our customers will always, in turn, have new offerings to stimulate continued client interest."

Established as a maker of lighting accessories, the firm's rich experience in this area has laid a solid foundation for quality in its pendant-lamps line. Song says the firm's quality-control department implements a stringent checking system on all items.

The prices of steel plate, copper, and other key materials skyrocketed by some 30 percent last year, and many firms have responded by raising product prices by 20 percent or more. Yongxin, however, has left its prices nearly unchanged by taking such measures as reducing office staff and improving production efficiency. Song claims that the firm's customer base doubled last year and that, "Our export revenue this year is expected to double as well."

Tengfeng`s elegant pentant light

Dongguan Tengfeng Lighting Co., Ltd. Was established in 1995. In 1997 the firm built its own factory, which sits on a 30-acre site and has 300 workers. Its production range encompasses crystal pendant lights, glass pendant lights, acrylic pendant lights, chandeliers, and other models, which are exported to Southeast Asia, the Middle East and, with a concentration of high-end models, North America and Europe.

Kenny Lin, general manager of Tengfeng, says, "We've been endeavoring to achieve diversified development, and today do business in over 60 countries." Tengfeng regards quality as life, and passed its ISO9000:2000 qualification in May 2004. It also has CSA, UL, IEC, and ETC (CASO) certifications. During production, all items must pass a pressure test, ground test, polarity test, current-leakage test, insulation-resistor test, and other tests. Staff from the quality-control department are also sent overseas to attend UL Follow-UP Service seminars and lighting seminars targeted specifically at the European, Middle East, and other markets to improve their professional qualifications.

Lin reports that, "We've encountered many difficulties in the last year or so. Oil and plastic materials have increased in price by around 30 percent. We have had to reduce profit margins to keep price increases to within 10 percent. Material prices this year will not increase as much, so we are confident we'll keep growing steadily this year."

Tengfeng is expanding its factory, with the new facilities to come online in the middle of this year. Lin says the firm will exhibit this year at the HK lighting show, DALLAS show, and Frankfurt show.

Established in 1988, Sunlight Electronics Industry Co., Ltd. Is located in Guangzhou City, setting up its own factory in 2000. Sunlight mainly produces pendant lights, table lamps, spotlights, and wall lights. Its main markets are Europe (esp. Germany, the Netherlands, Sweden, and France), South Africa, and countries where citizens have significant disposable income in North Africa. Europe accounts for 60-70 percent of sales, North Africa about 25 percent, and South Africa about five percent.

Toptech`s Pentant Light

Xunlei Lee, Sunlight's general manager, says, "Pendant lights are now widely popular, offering long life at competitive prices. We're moving strongly into this line this year, and are now developing two series of combined glass and metal pendant lights in contemporary styling."

Lee says the firm has faced difficulties in raising prices over the past year as prices for materials have gone up. Customers have refused to accept any price increases. "We've had no choice but to reduce our profit margins, and have in some instances filled orders even without profit, " Lee claims, "in order to secure the business of long-term customers. But we've weathered the storm and become more mature and experienced in the process, which will help our growth this year and later on."

Shunde Toptech Lighting System Corporation is a Taiwan-based enterprise that expanded into China's Guangdong Province in 1997. Toptech specializes in pendant lights, wall lights, floor lamps, and desk lamps, which it mainly sells to Southeast Asia and the Middle East, with some to Europe.

Bingyun Liang, assistant to the general manager, says that Toptech's key line of pendant lamps are made of glass. Quality control for both materials and finished products is strict, with staff in the quality-control department given intensive training to improve the safety and quality status. The machines and equipment required by exporting to European and American countries like Pressure Tester are available.

Bingyun Yang says, "We've met many hardships last year. But thanks to our excellent job in maintaining old customers, we still got steady development last year." Bingyun Yang stresses, "We've started the European market. The new factory of 20, 000 cubic meters is under construction. We plan to move into it in mid-2005. Furthermore, we plan to register our own brand name TOPTECH this year to further expand our reputation in the world marketplace."

Bingyun Yang says they plan to participate to the concerned shows in Guangzhou and Shenzhen this year. Total revenue for 2005 is expected to increase by 20 or 30 percent over last year.
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