Domestic and Foreign Trade Work in Synergy — Guangdong’s Lighting Industry Unlocks the “Invisible Cake”
sourceSouthcn.com
time2025/10/20
- At professional fairs such as the Guangzhou International Lighting Exhibition and the China Construction Expo, Guangdong’s lighting enterprises have been prominently featured.
As the global trade landscape undergoes profound adjustments and domestic demand continues to unleash its potential, how export-dependent industries can achieve transformation and breakthroughs by expanding into the domestic market has become an important lens through which to observe the resilience of China’s economy.
Guangdong, as a major foreign trade province, has seen many industries rise amid the tide of globalization, yet they also face challenges brought by fluctuations in overseas markets. This article focuses on the transformation practices of Guangdong’s highly export-dependent industries, showcasing the resilience and ingenuity of the province’s foreign trade sectors in navigating turbulent times.
Since the beginning of this year, Guangdong has intensified efforts to hold the “Guangdong Trade Nationwide” series of exhibitions, helping high-quality export products expand into the domestic market. At professional fairs such as the Guangzhou International Lighting Exhibition and the China Construction Expo, Guangdong’s lighting enterprises have been prominently featured.
Guangdong is one of the world’s largest lighting production hubs — one out of every two lighting fixtures globally comes from here. With a complete industrial chain, advanced manufacturing techniques, and sharp market insight, Guangdong’s lighting products have long held a significant share of the international market, becoming a shining symbol of “Made in China” on the global stage.
Now, as tariff conflicts intensify fluctuations in overseas demand, many export-dependent lighting companies are beginning to reassess the potential of the domestic market. With the traditional lighting sector — the “visible cake” — largely divided, the question of how to tap into hidden growth opportunities and expand new domestic businesses and channels is driving Guangdong’s lighting industry to turn inward in search of new commercial possibilities.
Growing Pains: Foreign Trade Under Pressure, Awaiting a Breakthrough
From strengthening domestic sales to sailing abroad — and in turn, fueling the expansion of industrial clusters — the rise of Guangdong’s lighting industry has been driven by continuous progress in the integration of domestic and foreign trade. In the 1980s, villagers in Guzhen, Zhongshan, drew inspiration from lighting products in Hong Kong and Macao, handcrafting fixtures through small household workshops.
This marked the beginning of Guangdong’s lighting and illumination industry. Riding the wave of China’s reform and opening-up, Guangdong’s lighting manufacturers gained access to international markets, taking on overseas orders through the “three-plus-one” model (processing with supplied materials, samples, and parts, plus compensation trade), while gradually developing independent improvements and customized innovations.
Over the past four decades, centered around Zhongshan, Guangdong has gradually built a complete industrial chain — from lamp housings to internal light sources, from screw fittings to full fixture assembly — becoming the world’s core hub for lighting production. Today, Guangdong stands as one of the largest global manufacturing bases for lighting products, accounting for over 70% of China’s market share and an estimated 50% of the global share. With its high industry concentration, Zhongshan is widely recognized as the “Lighting Capital of China.”
However, under the new global landscape and industrial transformation, Guangdong’s lighting sector is facing growing pains. From a market perspective, Guangdong’s lighting exports make up about 32% of China’s total, ranking first nationwide, with Europe and the U.S. as major destinations. Yet, mounting trade barriers and declining demand from the U.S. have put pressure on exports, pushing enterprises to explore emerging markets.
From a product perspective, Guangdong’s lighting industry has long occupied the middle segment of the “smiling curve” — the manufacturing stage — while the high-value ends of design, branding, and distribution remain largely outside the province. As a result, industrial value-added remains low. In terms of market players, Guangdong’s lighting enterprises are numerous but lack strength. According to an analysis by Qianzhan Industry Research Institute, Zhongshan's Guzhen Town hosts around 38,000 lighting and accessory companies, most of which are small-scale. Intense homogeneity among small firms has led to price competition and weak bargaining power, further constraining sustainable growth.
Breaking the Bottleneck: Industrial Chain and Innovation Power
Adaptation leads to advantage — those who act wisely prevail. Facing new market dynamics, Guangdong’s lighting enterprises have not waited for opportunities to come; instead, they have proactively stepped into the domestic market, seeking breakthroughs through their strong industrial chain and innovative momentum. The lighting industry features a long and intricate supply chain, covering optics, electronics, and component manufacturing. In Guangdong, companies can conveniently access all the suppliers needed for end-to-end production within the province. This well-established industrial ecosystem provides foreign trade enterprises with abundant resources and the confidence to join forces and explore new markets together.
Beyond the advantages of a complete industrial chain, China’s vast domestic market and the penetration of innovative technologies are injecting new momentum into industrial transformation. As national policies to stabilize the economy, expand domestic demand, and boost consumption take effect—alongside the implementation of the “Two New” and “Dual Carbon” strategies—the lighting industry is seeing tremendous opportunities for growth. Emerging segments such as smart lighting and healthy lighting are rapidly rising, driven by consumers’ growing demand for high-quality, intelligent, and energy-efficient products.
At the 30th Guangzhou International Lighting Exhibition, AI-powered innovation became the new highlight—lighting control systems that automatically generate scenes based on users’ moods, smart terminals that integrate touchless lighting, voice interaction, and curtain linkage, and AI lighting service robots with multimodal interaction capabilities. These innovations are propelling the industry toward higher value creation. There is now a shared consensus within the sector: the future lies in evolving from “products” to “products + services,” enabling lighting solutions to deliver richer functions and experiences—ultimately meeting people’s diverse lifestyle needs.
Government Support: Paving the Way for Transformation
Guangdong’s lighting industry, which is shifting its focus toward the domestic market, owes much of its transformation momentum to a series of precise and effective government initiatives. As a vital channel for businesses to reach new clients, trade fairs have become a key area of government support.
This year, the Guangdong Provincial Department of Commerce has promoted the “Guangdong Trade Nationwide” and “Foreign Trade Premium Products Enter China” initiatives, backing major professional exhibitions closely related to the lighting industry—including the Guangzhou International Lighting Exhibition, Ningbo International Lighting Fair, Guzhen International Lighting Fair, and Guangzhou International Professional Lighting and Sound Exhibition. These platforms have provided lighting companies with nationwide exposure and sales opportunities, helping them accelerate their entry into the domestic market.
To address the funding challenges faced by export-oriented enterprises pivoting to domestic trade, Guangdong has also established a special financing fund for processing trade enterprises, offering loans and interest subsidies to support manufacturers—including lighting companies—in easing capital pressures during their transition.
In addition, major lighting industry hubs such as Guangzhou, Shenzhen, and Zhongshan have launched localized measures tailored to their strengths. Guangzhou has opened a 24-hour “Direct-to-Market” green channel for domestic trade and introduced a 100-billion-yuan procurement support plan, providing strong backing for enterprises seeking to expand into the domestic market. Shenzhen offers subsidies of up to 800,000 yuan for related expenses and leverages the “Shenqi e-Trade” AI platform, which provides free access to over 20 million global buyers, helping companies reach clients through digital channels.
Zhongshan, meanwhile, is organizing enterprises to expand domestic market efforts, hosting no fewer than 100 supply chain matchmaking events annually and allocating special funds to support participation and exhibition-related costs. From being a global manufacturing hub to achieving coordinated domestic and international development, the transformation of Guangdong’s lighting industry reflects the strategic agility and resilience of Chinese manufacturing under the dual circulation economic framework. The “Guangdong Trade Nationwide” and “Foreign Trade Premium Products Enter China” initiatives will continue to drive this momentum, empowering Guangdong enterprises to seize new market opportunities.