Moving from plastic lighters to gold-embossed cigarette holders, the trajectory of Zhongbang Smoking Sets Manufacturing Co mirrors the aspirations of Wenzhou, a city in eastern China that has long been a hub of low-cost factories and is now moving toward producing higher-value goods.

Five years ago, 80 per cent of the world’s lighters were produced in Wenzhou, and many of the world’s shoes and spectacles too. The city’s share of the global lighter market remains large but is losing ground, having slipped to about 70 per cent.

Rising labour costs have squeezed margins for Wenzhou’s factories and begun to drive production to cheaper markets, such as India and Vietnam, as well as less-developed inland regions of China. But many companies are still thriving in the city, thanks to a strategy of improving quality and brands.