Purchasing LED lights from China- GUZHEN(ZHOGNSHAN) and SHENZHEN

If you are on lights  business, but don't  know GUZHEN(people usually say zhongzshan, but zhongshan is a city, more precise is GUZHEN), then i will say you are not a qualified lights businessman. Why? GUZHEN- A town of Guangdong province in China,  produce 70% of the lights for the world.  Shenzhen,  another  important lights production base, especially for LED lights, 3 hours  by car  from GUZHEN, is also well-known in the world. The quotations you get mostly come from  these two places,  what's the difference between them?  or we expand our topic,  how to purchase LED lights  from China  (actually because of the quantity of LED lights that these two places produce, we can say how to purchase LED lights from GUZHEN and SHENZHEN) .  Here are some points  for you.

GUZHEN l. Speaking of the  lights  of GUZHEN,  many people will  say,  cheap and bad quality. yes, when you say it, you must saw it, bought it or at least people around you has such experiance.  but how can you ask for a very good product with price much less than a normal market price? when you ask for 1 USD for a 9w bulb, and you believe that it is a reasonable price in the market, the factory can only fulfill it by using cheapest material. 

The matter is what kind of products the customer want the suppliers to make.

Actually, 2 of Top 4 lighting giants of China locate in GUZHEN. Many famous international  lighting companies OEM by GUZHEN factories.

2. Why the lights in GUZHEN can be so cheap ?

 Reason 1:  too many suppliers in a small place, the competitiveness make the product very cheap.

Some people who have visited GUZHEN may have found, there are lights factories everywhere, most of the factories will rent a shop in the street as a window of their image, products and service. there is saying that you can easily buy  a lights, but very hard to buy a bottle of water, because it's not worth selling water there because of the rent(but I think it is may be a business opportunity ).  Another saying: if there is a traffic accident in GUZHEN, 4 people killed, 3 of them will be on LED lights business.

Reason 2: Clustering effect Lower the cost.

If you want to produce a LED bulb, but you need to purchase LED chip from America, LED driver from Japan, heat sink from China, packages from India, and many other material from other different places, how can you lower your cost in this way ? But in GUZHEN, the situation  is different, you can find all materials, ALL! in a street , what's more, for each material you can find many many suppliers and choose the best one.  Some provinces in China want to build another GUZHEN, and some countries also want to take the opportunity of LED industry. But I think it is not easy, because you can build a factory and buy good machines, but you cannot build a compelete and competitive industry chain in a short time. in my opinion, this is the most important reason.

Reason 3: Homogenization

Homogenization is not good for creation, but it is a good may to lower the cost , apply a  design and improve it, when you visit GUZHEN. You will find most of the shop showing the sampe products in piles. If one product very hot in the market, all factory will follow, the cost for most of parts of the products  will be reduced dramatically. For example, there is only one factory produce a product, he need to buy 5 fittings from 5 suppliers. The price of these fittings will be very high, because the product is unique, they need to make it specifically, then 100 factories produce the product, the material is needed in big quantity, cost is reduced from each level of supllier.There are thousands of LED lights factories in GUZHE, some of them are very big, but most them are very small, they are less of capital, no money to advertise, but they are very sensitive to new products, they work for low profit(they dont want to but have to ), their cooperation method is very flexible, they can accept small order usually. Give them reasonable profit, they can support you very good. Here is the "but contents", contents follow a "but " is alway  not good.  Most of them are very small factories. They can easily quit the industry, run away when there is a problem. Not always, but I mean it will be easier for them to get rid of their responsibility compare with some big companies, it is a risk need your attention. And then, most of them have no international view and a clear idea that what kind of company they want to be, may be ten years later, the size of a company keep the same. you cannot ask them be as orthdox and standard as many companies in SHENZHE. This characteristic may effect your purchasing experience more or less in certain aspecpts.

SHENZHEN

Shenzhen is a big international city, creative and enthusiasti. the companies always want to be number one in Shenzhen, number one in China and number one in the world. they have clear object and try different way to be bigger and strong. They have the best designers, engineers and marketing awareness. always want to make their products and service unique to attract customers' attention and to increase  the profit. The problem is, as you can find if you get two quotations from GUZHEN and SHENZHEN respectively--the price is high. Sometimes because of their quality is higher, sometimes because their cost is really higher, sometimes because they are ambitious and ask for more profits. 

Is there companies produce good and cheap LED lights in SHENZHEN ? Yes of course, this answer is also workable for GUZHE. The problem is how to find them, believe me, you can not find them easily by visiting the exhibitins or using B2B website such as Alibaba or by visiting some of the LED lighting companies. The best way  is to find a partner in China ,no matter what kind of ways to cooperate. What you need to do is give your requirements to him, let him searching the one you need. For example, Robin and his mango lighting is a good choice(www.mango-light.com).We are now cooperating with several companies from middle east and Europe, sure we can make your business easier and more competitive.

More information about LED lighting, LED industry, about China,Chinese people and Chinese culture , just in mango lighting's blog!

(Robin, manager and owner of mango lighting, 4 years direct experience with LED industry, whose family has 10 years experience in LED industry, )