LED product manufacturers and suppliers, which have long relied on government cooperation on property projects because of the high cost of making and installing LED products, have also switched strategies, moving away from government agencies to large enterprises.

"Most of us LED light producers used to have regular cooperation projects with regional governments as LED lights were mostly applied in the government buildings, but now we have to switch to a larger market for better opportunities," said Wan Xiaojun, general manager of Wenzhou Juguang Lighting Co Ltd in Zhejiang province.

Total sales of lighting products, according to statistics from the China Association of Lighting Industry, reached 400 billion yuan last year, with one-third of that coming from the sales of LED products.

Wan added LED products are more widely accepted by individuals and private households rather than government-related institutions because the cost of raw materials is currently lower.

Zhang said as LED technology improves, LED products will replace traditional lighting products in the near future.

"The businesses of traditional lighting companies weakened because of the rush of LED product enterprises, which supply higher-quality lights at reasonable prices," Zhang said.

Zhang also said the lighting industry also has been affected by the downturn in real estate industry because fewer people are purchasing new apartments.