Security integration under the brand era

The slowdown in China's economic growth was the most popular topic discussed in 2012. The National Bureau of Statistics announced that China’s GDP in the third quarter increased by 7.4% year-on-year, and the growth rate fell by 0.2% from the second quarter to a record low of 14 quarters. As the real estate market rebounds, export orders stabilize and consumption resumes, the Chinese economy is likely to have bottomed out. The economic downturn eased and the market became active again.

I. Accelerated recovery of the industry, market competition into the white-hot Shanghai and Shenzhen companies disclosed three quarterly reports, the overall net profit fell by more than 4%, compared to a slight increase in the first half of the decline in net profit of about 2%. The listed companies' second-quarter warming trend did not improve significantly in the third quarter. According to publicly available data, there is a drop in the quarter-over-quarter performance of Comparable Data Corporation's 60% Super League. Although the performance of more than half of listed companies has declined, the security stock market has shown a counter-attack trend. Listed companies, as representatives of advanced technologies and products in the security industry and industry development trends, through the data in the security listed company announcements, we can conclude that security listed companies and even the entire security industry in the first half of 2012 exhibited the following characteristics: Security is still in place The development of the industry is more booming, and the growth of front-end equipment for security is still fast, and the front-end equipment for security is still growing rapidly.

The rapid growth of industry demand has been accompanied by gradual handover and integration with other industries. A large number of talents and funds have entered the video surveillance industry, which has caused drastic changes in the market conditions. The market competition is getting more intense, and the way of competition is also rapidly developing and evolving. These changes have brought a lot of talents and funds for the video surveillance industry, which has made the development of the industry more vibrant than ever before. Some advanced technologies have been created and applied, and some new operating modes have begun to emerge. On the other hand, these changes further exacerbated market competition. Regardless of technology, talents, capital chain, etc., traditional security companies bear greater pressure, but this pressure also stimulates the self-development of enterprises to a certain extent. Allowing companies to improve their capabilities and adapt to the market faster. Listening to customer opinions and developing innovative solutions tailored to customer needs are the keys to a successful business. The company will also expand the market to developing regions to make up for losses in mature markets. .

Second, industrial chain integration, brand value highlights price competition is a double-edged sword, there is no market for price competition is definitely not a good market, the existence of price competition can force companies to continuously upgrade themselves, the use of advanced management methods and production, research and development technology Reduce your own costs and adapt to the needs of price competition. However, excessively intense price competition will bring huge harm to the industry. Uncontrolled price war in the same industry will bring huge losses to the overall interests of the industry. The end result is that most companies are not profitable. So the overall wilting. Due to the large number of companies in the security industry, the price war is very intense, but it will not affect the overall development of the industry within a short period of time. At the same time, companies at the top of the industry pyramid generally do not rely on price competition to survive. These two factors are both Predicting that price competition will become increasingly fierce, it will not bring too serious losses to the industry.

Price competition is always the theme of all markets, especially when there is ample domestic labor and the oversupply of the industry, price competition will become extremely crazy. This also applies to the video surveillance industry. In general, price competition is divided into passive price competition and active price competition. In the case of oversupply of the market, companies are often willing to sacrifice their profits in exchange for customer's favor in order to ensure their survival and compete for the market. This kind of price competition is passive and is generally a last resort. At present, the analog video camera market in the southern China is a typical passive price competition. The net profit of the company has dropped below 10%, most of which is 3%-5% or even lower. This method has a certain degree of impact on the development of the industry. The mode of low-profit pure processing is relatively fragile, and the survival of enterprises is subject to a large number of variables. These will in turn affect users, although the cost incurred by users in the initial period is very low. However, there are great risks in the later services.

The security giant is slowly approaching us. With the gradual opening up of the market, excellent production technologies and excellent procurement channels are largely in the hands of the enterprises. Some companies have more room to launch price competition, and further crack down on competitors and clean the market environment through such measures. The price competition method is to take the initiative and aim to unify the market and obtain market control within a relatively large range. The more classic case of this approach is the current storm of DVR prices. Since large companies have more capital and better cost control capabilities, they can use oppressive and crackdown prices at close to cost, and this price often makes The competitors are very uncomfortable. After a certain period of time, some of the weaker opponents will have serious problems in market share and capital chain, making them gradually withdraw from the market. The vacant customer resources and market space are undoubtedly more valuable. Wealth.

In addition to the integration of upstream and downstream resources to form the advantages of brand and price, through the establishment of a clear hierarchy, the establishment of standards to ensure the clarity of the game rules; continuous innovation of technology to meet the diversified market needs; combined with the security market environment, with The increasingly fierce competition in the security market and the increasingly smooth channels have increasingly highlighted its importance. Some people even shouted "security, and people who have access to channels have become the world." Domestic security companies have voluntarily relinquished their channels for direct sales. China’s vast territory and abundant resources, and because of its geographical, climate, humanistic, and many other characteristics that have become customary, it has also been intrinsic to the selection and use of security products. Local characteristics, do not go deep into the channel, do not get the support of channel operators with rich experience, can think of their land and water.

In addition, under the premise that product homogeneity has become a trend, companies should focus on previously neglected services. This service includes pre-sales training exchanges, sales guidance and after-sales service. When it comes to operational services, the security industry is plagued by market criticism. We can clearly see that such excellent security companies like Tianweiye and Haikang have been tempered for many years and have already incorporated services into the bone marrow, and they are constantly improving.

Third, the product of vertical integration, highlighting the overall solution Video surveillance products developed so far, whether it is a major product replacement, or detailed product performance and feature upgrades, the development of the core technology is the most important promoter. The competitive winners of core technologies often become excellent representatives of each era.

Starting from the codec technology, the current technology competition has been fully implemented in IP, intelligent, high-definition and other fields. Changes in the competitive focus will cause the market structure to fluctuate. If the analogous CCTV products companies that originally occupied a great advantage did not take the lead or follow the trend in IP and other technology competitions, they may be gradually passive in the market and enter the company's development. A period of more difficulties; and some enterprises that have mastered core technologies such as IP are likely to develop rapidly and gradually become the dominant players in the market, resulting in disruptive changes in the market structure.

At the same time, after technology competition enters IP and other fields, the speed of technological elimination and innovation is also accelerating. It turns out that a new technology may be able to maintain its leading position for several years. Now it may only last six months or even shorter. This kind of situation demands more and more companies. If you do not join this "arms race", companies may be eliminated. To win or stay with the "arms race", it also requires a sustained high investment. This process is repeated and repeated. The gap between different companies is gradually widening, and the situation of corporate elimination and entry is also becoming more and more frequent.

In the past few years, the competition in the video surveillance industry has mainly focused on product competition. Different product types may have a range of competition, such as matrix, optical transceivers, DVRs, etc. Each product type will have several major enterprises. These companies are often not cross-border and each has its own priorities.

However, with the development of IP technology, a single product has not been able to participate in the market very well. Because of the standard and compatibility problems of IP systems, manufacturers who provide a single product cannot use a single product to gain market recognition, nor can they effectively satisfy customers. Demand, this situation will enable companies to gradually enrich their product lines in the exploration, formed their own from front to back, from the hardware to the software a full set of solutions.

On the other hand, after the rapid entry of IP technology into the market, users' acceptance of this technology is relatively slow. At the same time, there are situations where advanced IP, intelligent, high-definition products are mixed with traditional analog CCTV products, and users have more difficulty in understanding the system. Large, unable to quickly and accurately collaborate with products and build systems, this state urgently needs companies to provide one-stop services and overall solutions, so that the needs of customers can be successfully achieved.

The development trend of system solutions in the video surveillance industry is accompanied by digitization. Around 2003, Tiandi Weiye proposed an “industrialization” solution and advocated providing customers with a full range of products and solutions, after years of development. This concept has been well known and recognized by the industry. Since 2009, traditional DVR manufacturers such as Haikang, Dahua, etc. have also started to shift from simple product providers to "product + system" total solution providers.

Through direct communication with end-users, the company provides users with integrated solutions and products that can further access the market, gain higher profit margins, and occupy more and more stable markets. At the same time, through this direct communication, the needs of users are becoming more and more accurate, and the development and release of products are increasingly in line with market demands.

Conclusion Competition is an eternal theme in all industries. The trend of competition is always in an increasingly fierce and fast-paced way. The core topics that are surrounded by competition are technology, talent, capital, and price. The video surveillance industry is a fast-growing industry. In the process of rapid growth, the competitive model will become more variable. However, overall, this is very beneficial to the development of the video surveillance market. Competition will promote an industry. As the growth of traditional enterprises gradually adapts to a high-paced competitive environment, as long as all companies together, abide by certain norms, benign competition, and jointly maintain a good industry environment, the video surveillance industry will grow faster, and industry companies will also receive more development of.