Jinghualong Security Equipment Co., Ltd. (JHL) was established 1999 in Shenzhen, China, emphasizing alarm/intrusion manufacturing and development. With a decade of experience, the company built its sales channels within China as well as cooperating with distributors overseas. A&S China Best Buys talks to Richard Lee, Sales Director at Jinghualong, to understand the secrets of the company's success.
With a decade of effort, Jinghualong Security Equipment Co., Ltd. has set up branches in more than 10 cities in China. The company has experience in high-end applications domestically, including military, telecommunications and upscale residential communities. “The company maintains the largest market share in intrusion systems for the Chinese telecommunications industry,” said Richard Lee, Sales Director at JHL.
The company has enjoyed huge growth due to its continuous dedication to the intrusion industry and clear market direction. “We are only 11 years old in the industry, which is not yet a mature company,” said Lee. “The company should be still at the growing phase, as we do not follow the old mindset and are willing to change to cater to market and customer requirements. The company's success lies in better serving customers with our in-house R&D capabilities.”
The company's dual-tech motion detector combines microwave and PIR sensors with intelligence. “Its biggest innovation is the unique way of installation,” Lee said. The design connects wires and brackets so installers do not have to set up them up separately. This saves installation time, makes maintenance easier and protects wiring by encasing it in the detector.”
PIR detectors can be found in numerous installations, with wired or wireless options depending on the application. JHL will invest greatly in software development for the control panel, as it is a weak spot of Chinese suppliers. “The control panel plays an important role,” Lee said. “It is capable of increased integration.”
Wired detectors are more suited for commercial areas, while wireless detectors are better for residential homes. Wireless detectors are the company's next development target. Lee believes small-scale applications and the residential market hold strong potential. “We are refining our wireless detector in reducing interference, adding more communication protocols as well as increasing the antenna's range,” he said. “This is our winning strategy for providing a good wireless detector.”
Product quality is a top concern for buyers. Therefore, JHL makes production a key differentiator from other suppliers, ensuring its manufacturing procedures and quality control are strictly followed.
“We focused on automated equipment when we started manufacturing. We have computer numerical controls (CNC), molding machines and a wave soldering machine,” Lee said. “In 2009, we even installed a new surface-mounted technology machine. It may be common for video surveillance manufacturers, but not for intrusion alarm suppliers.”
At the testing front, the company set up a laboratory with devices like lightning surge generators, electrical fast transient generators, electrostatic discharge generators, vibration generators and temperaturetesting equipment. All finished JHL products will be examined before their shipments.
Lee pointed out the company is certified ISO9001:2008. With stringent product management both in manufacturing and testing, the malfunction rate is under 1 percent. “We emphasize product quality as the company's core competence, to survive fierce market competition,” he said.
Overseas customers originally accounted for the majority of JHL's sales, but have waned due to the economic downturn. Domestic demand has picked up and become the biggest revenue generator since 2007, making up roughly 70 percent of current sales.
However, the company sees great potential growth in emerging markets, such as India, Southeast Asia, Latin America, Eastern Europe, the Middle East as well as South Africa. With more than 20 patented products, the company's solutions suit regional differences and specific applications.
The company has increased its branding efforts in Southeast Asia. “The Association of Southeast Asian Nations provides an untapped market with a population of about 1 billion,” Lee said.
In addition to brand expansion, 24/7 support and service centers will be established. “A manufacturer's understanding of local needs should not depend solely on local partners,” Lee said. “Combining accumulated technical experience and increasing research efforts are key factors to penetrate a market.”