In China, energy-efficient bulbs and alternative power sources are increasingly used in the Christmas lights industry.

Two years ago, about one-fifth of the 1,000 suppliers had the capability to make LED-equipped models. And less than 20 percent of their total production was allotted to the segment, as incandescent designs were mainstream.

By now, nearly all the suppliers boast regular manufacturing lines for LED Christmas lights. In fact, such types now account for 60 to 70 percent of the output in most factories.

LED bulbs feature low power consumption, high heat tolerance and brightness, and last 20,000 to 100,000 hours, comparing with the average 3,000 hours for incandescent bulbs. What’s more, they function properly in temperatures of -40 to 80 C and can be switched on and off frequently without damaging the wires.

Some Chinese makers are also adopting new power sources for the energy-efficient lights. For example, Shenzhen-based Ever Bright Electric Co. Ltd has developed LED Christmas lights that run on solar energy. China’s production of such models is projected to increase at an annual rate of 5 to 10 percent.

Typical low-end string releases are good for one-season use only. These have a basic linear construction, fitted with single-color, steady incandescent bulbs. The life span is short, ranging from 1,000 to 1,200 hours. The plugs and cables are made of locally sourced ABS. Products with a length of 5m are priced from $0.75 to $4.

Upscale versions have a much longer life span, reaching 100,000 hours. The bulbs are usually sourced from Taiwan, while raw plastic with high temperature resistance is purchased in South Korea or Germany.

Using controllers, these can play Christmas melodies that are synchronized with the lights’ blinking motion. A 5m-long design fitted with up to 200 bulbs starts at $8.

The economic crunch that hit key overseas markets contributed largely to the 22 percent decrease in exports of China-made Christmas lights. In 2008, the country shipped 385 million pieces, down from the previous year’s 498 million.

The descent was less steep in terms of value, thanks to the higher average per-unit value in 2008. Exports amounted to $995 million, only 2 percent lower than 2007 levels.

Customs statistics show that 40 percent of China’s exports in the line go to the US. Average monthly shipments bound for there are valued at $35 million. Other key markets are the UK and the Netherlands, importing $6.2 million and $5.8 million worth per month.

Most Christmas light suppliers are located in Zhejiang and Guangdong. Combined exports from these provinces account for nearly 90 percent of the country’s total.

Companies in the former hub specialize in models that target the low-end and midrange markets. The cities of Yiwu and Taizhou are the chief manufacturing centers, with small and midrange players dominating the supplier base. The province’s monthly shipments average $38 million.

In Guangdong, most makers focus on upscale designs. The bulk of production takes place in the city of Shenzhen. Exports are valued at $34 million per month.