New policies dim lighting firms' sales

China's restrictions on new property construction and on extravagant official spending are hitting the lighting industry. [Photo / Xinhua]

Lighting companies say they are struggling with fewer individual customers and shrinking sales revenue because of recent government limits on the construction of new properties and restrictions on extravagant official galas.

An appeal by President Xi Jinping to against extravagance in December impacted companies that supply lighting products for large events and construction projects organized by regional governments, according to lighting industry associations and companies interviewed by China Daily.

In July, the central government issued a notice to ban all levels of Party and government offices from building new properties over the next five years. Lavish decorations in governmental office buildings were also banned.

"My company had a drop of over 50 percent in sales last year and the decline continues this year," said Ye Xiaoming, owner of Zhongshan Oriental Pearl Lighting Co Ltd in Guangdong province.

Ye said he expected government policies that will support struggling lighting companies.

Zhang Hua, secretary-general of the Foshan Lighting Association in Guangdong, where many lighting product manufacturers are based, said the drop in sales volumes has affected the entire industry.

Zhang added that manufacturers are trying to focus more on making low-cost products that are not seen as extravagant.