From ancient times to the present, the famous businessmen in south of the Yangtze River were here and there, due to Reforming and Opening up policy of Chinese government, the companies of this region takes the initial to seize the global capital markets and venture abroad in search of opportunities. According to the statistics of China's economy over these years, dozens of developed counties in Jiangsu and Zhejiang province would come up with numbers of villages that are well-known in some particular field. a&s talks to several suppliers to reveal the particular features of security industry in this region.
Harmony in Diversity
In addition to the traditional locks and safes, security manufacturing sprang up in Jiangzhe region at the year of 2000. Through more than ten years' growth, Jiangzhe brand has established great reputation by flourishing in domestic market.
Due to the enduring emphasis on technology, the leading security companies in Jiangzhe keep injecting the lasting vitality into this field. Hikvsion has built its subsidiaries around the world with international channels; Dahua has gained the prominence by its embedded DVR and is always pushing forward the technology; Dali launched the 1st infrared camera in 1993 and possesses the steady high-end market.
Among the senior executives in Jiangzhe's companies, most of them come from technical background; technological innovation has thus become an important form of their operation concept. Guided by such principle, a firm technical exploitation has been realized with strong teamwork spirit, which obtained them important positions in the part of DVR, speed dome, electronic lock and biometrics. Jiangzhe security is progressing with the constant motive power because innovation is the impetus of keep security continuance development.
Cooperation and Competence
Jiangzhe security products are dominated by speed dome, matrix, DVR, electrical lock and biometrics, unlike those in the southern part of China, where the homogenization forms a trend. In operating with the products of the same type, they vary from one to another. For example, Dahua works on the embedded DVR, Dali focus on infrared vision imaging, Qiyang's core technology is codec, network transmission and intelligent analysis, Zenointel supplies automatic integration software. “The social division of labor tends to be more obvious, only the differentiation can grab us niche market.” said Hu Lijun, Market Manager of Pearmain Electronics.
As is often the case, once the new product is launched, copy is fairly common. Numbers of peers would scramble to follow by focusing on the same product and try to grab the market by low price. However, this situation is rarely seen in this region, it is common that security players of Jiangzhe put much emphasis on the unique and differentiating factors in company management and product line. “The manufacturers in Jiangzhe have nothing special but make practical comes first, rather than rush around shouting slogans, we prefer cooperating with others.” added Hu.
The most distinguished part is that security players in this region works under the positive ambiance which is surrounded by collaboration and healthy competition. Good relationship is always maintained among the so-called competitors such as Pearmain Electronics and AB Group, both of them are known for the matrix products; The same goes for Hikvison and Dahua, the top leaders often get together to discuss for sharing the ideas about the strategy.
Furthermore, it is a matter of fact that the enterprises here are more prone to be differentiating from other rivals from all levels in communicating with the manufacturers. They all possess different backgrounds and core advantage, only learning from each other can make mutual progress. Instead of acting on impulse, when referring to the market, they deal with the issue in a calm and mature manner under the premise of differentiation. This just creates conditions of existence for the development.
It refers to some ordinary things like Life Plant, availing itself of every opportunity to grow to expand as there is no rich resource to making use of. This grassroots spirit gradually evolved into the existence spirit that is being mindful of possible danger in times of peace but in sight of promise in the underestimated situation.
Apparently, private companies take the majority in China's security industry, where the crowd rises in a tumult and then dispersed in the operation of security industry. In spite of the some blindness in the company planning, security players in East China are more practical with clear vision in making progress. “We all need to find room for living, to be in harmony but to be varied.” expressed Hu.
While the security players in Shenzhen had owned many deep channels, the emerging Jiangzhe security company had set branches in some big city like Shenzhen, by providing perfect OEM service directly for distributors to seize multiple channels for their products. Nevertheless, just as there is a widespread uncertainty chilling the investment climate in the short term, some trade companies in Shenzhen was vulnerable to the overwhelming situation while the channel systems were blossoming in Jiangzhe, which helps to build powerful regional m a r k e t . M o r e o v e r, t h e s e companies took active parts in foreign market, which has firmly built them a platform for export trading.
Additionally, What is worth mentioning is that Jiangzhe's security companies have few dependence on the foreign brands, instead, most of them tend to promote the products by its own brands, few take the package similar to the foreign brands. “We sail on the sea like a ship, no matter how many branches we set on the globe, a close connection must be maintained between the ship and boats, if this connection is cut off, the foreign market development will end in collapse," said Michael Chen, Vice President of Dahua Technology.
Though the performance of security in Jiangzhe has gained much prominence, it is clear that they still stay in the initial phase in confront with the open foreign market, which should be taken into concern for further development. They are leading the China's security in domestic market, but once stepping abroad, the advantage would become trivial in comparison with foreign companies with respect to technology, marketing, management and brand operation.
As a consequence, overseas market is a battlefield to enhance the overall competence; competitors are no more the domestic peers but also the foreign players, which can be a valuable double-sword that incorporates both competition and cooperation. Despite the security players in other regions of China are emerging, they still have not yet formed such a highly cohesion effect like Jiangzhe. Why don't draw some lessons from them? That can promise a desirable prospect.