Security Industry Development and Problems in China

With the progress of society, people's demands for security have been continuously improved. In addition to the development of major cities such as the Ping An City, the Olympic Games, and the World Expo, the application of security products has become more widespread. The security industry has also made considerable progress and the industry scale has continued to grow. Moreover, with the family's attention to security and the application of new technologies such as Internet of Things, big data, and cloud computing in the security field, the security industry has seen some new development trends.

The development of China's security industry (I) The scale of the industry continues to expand, and the power of industrial growth is strong With the rapid development of the economy and the rising standard of living of the people, people's demands for security are getting higher and higher, and awareness of security and security systems is also increasing. More in-depth. In particular, the development of a series of major projects and projects such as the “National Emergency Response System”, “Safe City”, “Safe Campus”, “Safety”, and “Strengthened Science and Technology Police”, as well as the hosting of major international events such as the Olympics and the World Expo, etc. Promote the rapid development of China's security industry. Statistics show that: In recent years, China's security industry has maintained a double-digit annual growth rate.

During the "Eleventh Five-Year Plan" period, China's security industry has made considerable progress. By 2010, the total output value of China's security industry has reached more than 250 billion yuan (of which security products are about 100 billion yuan, security engineering and services is about 130 billion yuan), security companies have reached 25,000, employing more than 1.2 million people; During the “Eleventh Five-Year Plan” period, the security industry achieved an added value of more than 80 billion yuan, an increase of 1.8 times over 2005, and an average annual increase of over 23%.

In recent years, China's security industry has maintained a strong momentum of growth. In 2012, the China Security Development Index (CSDI) has been climbing slightly. The overall growth of the industry is close to 17%, and the total output value exceeds 320 billion yuan. The "12th Five-Year Development Plan" of China's security industry pointed out that by the end of the "Twelfth Five-Year Plan", the overall goal of doubling the industrial scale will be achieved. The annual growth rate has reached about 20%. In 2015, the total output value reached 500 billion yuan, and the added value was 160 billion yuan. The annual export delivery value reached 60 billion yuan or more.

(2) Rapid growth of key enterprises and marked increase in industrial concentration A group of security backbone enterprises have risen rapidly and the overall strength has been greatly enhanced. According to statistics, in 2010, there were about 100 security companies in China with production value exceeding 100 million yuan, and the degree of industrial concentration has improved significantly. And there are more than 10 security companies listed at home and abroad, and more than 20 listed companies at home and abroad will be included in security security one of its main business. Security management is more scientific and standardized. Enterprises use modern management methods to establish a scientific management system. Brand awareness, innovation awareness, etc. are continuously enhanced. The core competitiveness has been continuously improved. 21 products of 20 companies have won “China. Famous brand" title.

(III) Representative cities have their own characteristics, and the advantages of agglomeration gradually show up As China's security industry continues to expand, a number of representative cities emerge, such as Shenzhen, Hangzhou, Quanzhou, and Beijing, which have distinctive features for the development of their security industry. .

Shenzhen: the capital of security. Shenzhen is an important base for China’s security and an important security production base in the world. After years of development, Shenzhen has already had a strong advantage of industrial clusters.

Hangzhou: Video surveillance leader. Hangzhou has two leading companies in the video surveillance industry in China: Hikvision (002415, stocks) and Dahua (002236, stocks). The data shows that the important components in video surveillance are DVRs, DVR market, and Hikvision. Dahua shares and other major leading market share reached more than 60%.

Quanzhou: the hometown of the police. When it comes to alarms, people in the field of security will certainly think of Quanzhou. Quanzhou's security and alarm industry is developing earlier than other parts of China.

Beijing: Concentration of stores. Compared with other cities in Beijing, the security industry is characterized by centralized sales. Beijing is a political, economic, and cultural center. At the same time, there is also a huge demand for security products.

The development trend of China's security industry With the application of new technologies in the field of security and people's increasing security requirements, China's security industry has shown some new trends.

(A) More and more security products enter the home market The initial stage of the security industry development, mainly used in the field of public security, relying on the government's investment in infrastructure and public safety projects, especially the "Safe City", the Olympic Games, the World Expo and other projects The construction has greatly promoted the development and growth of China's security industry.

In the traditional security market, 20% of government customers and industry customers account for 80% of the total security market; 80% of SME users and home users only account for 20% of the security market scale and are called the “28 pattern”. ". In Europe and the United States and other developed countries and regions, the use of home security monitoring system is very high, especially video security monitoring, the market is basically the proportion of public video surveillance, industry video surveillance, personal video surveillance three pillars. With the further development of China's security industry, the market gate for home security is slowly opening up. The large-scale entry of security products into the home market has become a trend and the market prospect is inestimable.

(II) The intelligent security market will continue to grow at a high speed With the new technologies such as the Internet of Things, big data, cloud computing, and 4G, they will continue to integrate into the security industry, and security products and systems will become more intelligent.

In recent years, the construction of safe cities across the country has been in full swing, and the construction ideas have gradually evolved in the direction of digitization, networking, integration, and intelligence. As people pay more attention to the building security system and the active development of the construction industry and building intelligence industry, the intelligent transformation of traditional buildings and the intelligent investment construction of new buildings have entered a period of rapid development, as a building intelligent As an important subsystem, the intelligent security market will usher in huge opportunities for development and the market prospect is very broad. It is estimated that by 2015, China's security intelligent market will reach 160.96 billion yuan.

Problems in the development of China's security industry (1) Legislation lags behind, and market supervision is not in place On the one hand, the legislation lags behind the security market in China, which is not fully regulated, and a unified security market management system has not been formed in the country. On the other hand, security market supervision is not in place, leading to market confusion. First, the phenomenon of counterfeiting and inferior shoddy still exists. These products are not guaranteed in terms of quality and after-sales service, which not only seriously disrupts the market order, affects the healthy and orderly development of the high-end security market, but also buries hidden dangers for users. Video surveillance has become commonplace with news such as "eye blinking" and alarms. In the second place, low-price competition and unfair competition have hindered industrial development. In order to reduce the production cost of products, manufacturers have gained price advantage in market competition, and have cut corners and produced products. decline in quality. Individual companies have even evaded inspections of relevant state departments, conducted unfair competition, misled consumers, and pushed the high-end product market into a squeeze. Vicious competition has led to a decline in the price of security products and an increase in sales has not brought about an increase in profits.

(2) Uneven development of the market, serious homogenization of products, and unbalanced development of the market. The security field involves intelligent monitoring, anti-theft alarm, access control identification, and other fields, the product is very rich, but only the video surveillance equipment is widely used, occupying half of the security market, and other anti-theft alarm products, access control identification products Relatively narrow, the proportion of security products in the market is relatively small, far less than video surveillance products, the entire industry is not balanced.

The second is serious product homogeneity. At present, there are a wide variety of security products that look dazzling, but the similar products of various manufacturers are similar, lacking in style and uniqueness, making it difficult for engineers and users to choose from them. At the same time, due to the lack of industry self-regulation conventions, products can be easily imitated by others.

(III) Lack of core technology and lack of brand effect China's security companies have insufficient innovation capacity. Most enterprises are taking the imitative path and achieve low profits through cost tactics such as cost reduction. With the further development of the security market, the security industry With the continuous intensification of internal competition, a group of enterprises lacking core technologies and having insufficient innovation capacity will surely be eliminated. The traditional development mode of relying on price competition will also disappear. Due to the lack of core technology, not only did China's security companies lose their grasp of the key discourse power of the industry, but it also was not conducive to the protection of interests.

(4) Unreasonable talent structure, high-end talent lacks the traditional talent structure of the security industry: 10% of enterprise management talents, 15% of technical R&D talents, 35% of planning and marketing talents, 40% of industrial workers, etc. . It is not difficult to see that traditional security is less involved in the construction and operation management of integrated projects. The company's main business is single, and most of them are product manufacturers, system integrators or engineering firms, resulting in a single talent structure that is difficult to adapt to the rapidly growing market demand.

Countermeasures and Suggestions for Promoting the Development of China's Security Industry (I) Strengthening Legislation and Strengthening Market Supervision Firstly, strengthen the legislative work in China's security industry, introduce the "Safety Technical Precautionary Management Regulations" as soon as possible, and improve relevant laws and standards for the security industry, so as to provide a healthy development for the security industry. The second is to strengthen the standardization work of the security industry, forcing a group of companies with weak technology and incompetent enterprises and inferior quality products to withdraw from the security market; Third, to strengthen the market supervision of the security industry, severely crack down on the production and sale of fake and shoddy products, and resolutely stop the malicious The improper market behavior such as price reduction, shoddy, etc. promotes the sound operation of the security industry and sustainable development.

(II) Promoting market equalization development and resolving the problem of homogenization China should seize the opportunity of various industries and fields to increase the demand for security systems, formulate scientific and rational development strategies for the security industry, and actively explore new security system application industries. In the field, aiming at different requirements of different industries for security, build a security system that meets various industries so that the security industry can better serve various industries and fields, better protect people's personal and property safety, and promote balanced development of the security market. .

(III) Strengthening Core Technology Breakthroughs and Establishing Brand Effects Technological innovation is an important measure to improve the anti-risk capabilities of enterprises, and the same is true for the security industry. Security companies want to achieve sustainable development, or to take the road of technological innovation, strengthen R & D investment, enhance product differentiation, and obtain higher profits, thereby increasing the company's ability to resist risks. The first is to change the traditional development model and enhance the sense of innovation; the second is to strengthen investment in research and development of new products, promote the application of new technologies such as internet of things, big data, and cloud computing in security products; third, establish and improve independent innovation mechanisms of enterprises, and improve Core competitiveness of enterprises.

(IV) Establishing a talent strategy that complies with market development Along with the rapid development of the security industry, the field is continuously expanding and the talent structure is constantly changing. Security companies need to combine the development of the industry and their own development direction to plan talents from the perspective of optimizing the business structure. Work, using talents as a powerful engine to promote the transformation and development of enterprises, creating new advantages of talents with new agglomerations, and continuously unleashing the powerful driving force of talented people's engines, thus promoting the transformation and upgrading of the security industry.