Global perspective to see intense competition in the security and security market in 2012

From January to September 2011, there were three provincial security associations, Gansu Province Security Technology Prevention Association, Shandong Public Security Technology Prevention Association, and Xinjiang Uyghur Autonomous Region Security Technology Protection Industry Association. At this point, with the exception of individual provinces and autonomous regions, all provinces, municipalities and autonomous regions throughout the country have basically established their own security associations. Some qualified cities and even county-level cities have established their own security associations, such as Jiangyin City, Jiangsu Province. Behind the vigorous development of the Security Industry Association, not only reflects the prosperity of China's security market, but also reflects the vigorous development of China's local security industry and the rapid rise of the second and third level security market. Foreign security companies began to pay close attention to and pay attention to the second and third-tier cities.

The Battle of Standards kicked off the standard battle, which is a higher level war. The smoke of this war has already started.

Standardization is the result of the development of technology and applications to a certain extent, and the leading enterprises in the industry have a balance of interests. The implementation of each standard cannot be separated from the participation of leading enterprises in the industry. Sometimes it is inevitable that there will be a struggle for “interests,” because as a leading company, they always want more right to speak and “status” in the standard. It is the law of the market. The so-called "third-rate enterprises selling products, second-rate enterprises selling technology, first-class companies selling standards" is by no means empty talk.

Although we can anticipate the vigorous development of the security industry in 2012, we must also face the difficulties encountered in the development of the security industry in 2012. The appreciation of the renminbi, rising costs, and national regulatory policies are all of security companies, especially small and medium-sized enterprises. Security companies need to consider issues. The standard battle is a higher-level war. The smoke of this war has already started.

Strictly speaking, whether it is SVAC, ONVIF and PSIA, there are obvious differences between the standards, but there are also commonalities. Then, in the future development process, will they be mutually compatible or mutually exclusive? How will the "card" wash? From the lack of standards to the standards springing up, it shows that the Chinese security market has developed to a new stage. I believe there will be more standards born in the future.

Foreign-funded security companies are making efforts to launch the Hitachi China market to expand the scale of integrated camera business in China. On the first day of 2011, Hitachi will move the Hitachi integrated camera business from Fuzhou to Shanghai and set up a new company for surveillance cameras in China. After the establishment of the new company, the annual output scale of Hitachi's integrated camera movement will reach 300,000 units.

In May 2011, Canon also announced that it had entered the security monitoring market, launched a series of surveillance cameras, and selected China Digital as its general agent for security monitoring products in China. According to the plan, Canon first entered the Chinese market with analog surveillance cameras. In 2012, network surveillance cameras will enter the Chinese market.

In September 2011, South Korea ranked first and had a market share of more than 50% in Korea's security industry. Samsung S1 opened a new company in China. Samsung S1 will use its more than 30 years of experience in security services in South Korea to actively implement strategic plans for exploring the Chinese market.

In the network camera market, Europe has the second largest market share and the fourth largest in the world. Germany's MOBOTIX, which has the world's largest market share in the field of high-definition network cameras with more than megapixels, has also begun to increase the market in China after three years of testing. The pioneering efforts.

At the same time, Tyco, Honeywell, Schneider Electric, Axis, etc., almost without exception, began to increase investment and development in the Chinese market, and began to pay attention to the development of China's second- and third-tier markets and the western market. Axis has established offices in central cities such as Chengdu, and Honeywell has even launched Vista cameras for third and fourth-tier cities.

This shows that with the gradual saturation of domestic first-tier markets and increasingly fierce competition, foreign security companies have begun to change their strategies to enter the second and third-tier cities in China's security. It also shows that just eating high-end markets can no longer meet the growing appetite of foreign security companies.

Interestingly, while the foreign security giants' channels began to sink “down”, domestic leading technology companies such as Hikvision and Dahua have started to try “to eat up”—by secretly fighting for the high-end market.

It seems that whether it is the primary market, or the secondary or tertiary market, or even the four-tier market, as long as there are attractive cakes, it will lead to strangulation.

How do Security SMEs seize opportunities?

China's security industry accounts for the vast majority of SMEs, so whether the healthy development of SMEs also affects the development of the entire industry. At present, although the security industry is in a stage of “rapid development,” many security SMEs still face a dilemma. First of all, domestic raw material prices continue to rise, and manpower costs continue to rise, leading to rising production costs. In order to maintain existing customers, companies can only continue to reduce product profits. Because SMEs do not have scale advantages, they can't compare large companies to take advantage of scale to offset rising costs. In addition, the RMB exchange rate and foreign financial crisis have affected the export of foreign trade. As a result, companies are unable to expand their production through the accumulation of their own companies and can only maintain the status quo at most.

Security and small and medium enterprises seeking sustainable development not only need their own technological innovation, but also need to use banks or other means of financing to ease business pressure. As one person in the industry said: “Foreseeing brand enterprises should prepare for the battle for competition that has already existed and will emerge, and take the lead in upgrading the technology, maintain continuous technological innovation, and effectively resist the impact of competition. "As the country continues to introduce supportive policies for SMEs, SME development faces yet another new opportunity, and SMEs in the security industry must seize this opportunity to strive for internal strength and achieve self-salvation. Security SMEs should strive to improve their own operating conditions, improve the management level of enterprises, streamline institutions, and further reduce the cost of enterprise management. Improve the financial system and clarify the financial status of the company. It enables investors to understand the business operation and financial status of the company smoothly, thus laying a good foundation for raising funds and expanding production scale.

Brand building is still an intangible added value In 2011, the development of the security industry showed a polarization trend. The market share of high-profile and influential manufacturers and distributors continues to expand, and the market share of small and medium-sized dealers with weak competitiveness is gradually becoming smaller. As long as the price war is bound to die, it will be very miserable. Big brands have grown bigger and bigger, and second-tier brands have struggled to make ends meet; the medium- and small-sized brands have become the consensus of the majority. Small and medium-sized security dealers always seem to survive in the shadow of first-line brands. One of the reasons is that some small and medium-sized dealers neglect the brand effect.

Today, building a brand has become deeply rooted. The brand name is not only a symbol of high quality, but also a symbol of high quality, enabling consumers to increase their confidence and pride. For example, the Apple brand that is currently being riddled with lawsuits has been known for its brand effect. In the same grade of electronic products, the price of Apple products is the highest. In spite of this, Apple Store never lacks customers. Apple's mobile phone or computer has become the goal pursued by many young people. This is the value that the brand brings. “The wine is also good for the alley.” Some big brands have done a good job in publicity. They have achieved full coverage of advertising in television, radio, and other media, and even mobile phone messages have their own advertisements. Therefore, small and medium-sized dealers can not ignore the brand's construction and promotion. The added value of the brand has a very large impact on sales.