China Gears up for Transformation in 2011

HD
HD will be in the limelight for years to come. It provides more coverage and is suited for many vertical applications. The more advantages HD offers, the more benefits and value will be reaped by customers. HD adoption will increase for many upcoming Chinese projects.

Providers unable to bridge the HD gap may have to exit the security stage. According to Sony, the best way to perform image decoding for HD display is with strong management software. Manufacturers who used to be dedicated to analog offerings are migrating to IP HD solutions.

Experts predict high-resolution monitoring will be common in Safe City projects, as well as financial deployments in 2011. Most projects will deploy 1.3- and 2.0-megapixel cameras. High-end applications will favor 3-megapixel cameras in particular.

Korean supplier CNB Technology will support both HDcctv and IP portfolios. Despite the advantages of IP HD surveillance, network cameras require IT systems and complicated setup, discouraging some users. HDcctv saves cabling costs by maximizing existing investments. However, there are few HDcctv-compliant products and the price is still relatively high.

Extended Reach
With startling economic growth and incredible market potential in China, security players have expanded by adding more branches or subsidiaries. The inland region will be a key region for business development.

Honeywell has emphasized improved customer services by adjusting its marketing, sales and personnel management in 2011. Its long-term China plan includes expansion into Tier-3 and Tier-4 cities for more opportunities, which will also address more verticals than before.

To have better local customized service, Axis Communications and Dallmeier plan to set up several production facilities to meet domestic product demand.

Local security manufacturer Hikvision Digital Technology emphasizes its home turf experience with subsidiaries in 28 cities. As Safe City projects continue, Hikvision won a major US$8 million project for Chongqing's city surveillance.

Channel Education
More manufacturers are educating their partners about IP, as well as forming more partnerships in the IT channel. In 2009, Bosch formed an IP surveillance accreditation program for distributors and dealers, troubleshooting system installation issues.

In Bosch's experience, roughly 90 percent of project failures originated from poor network structure, inadequate bandwidth and limited storage. Education efforts for local partners will continue in 2011.

Axis takes another route for IP convergence. With a strong IT background, Axis has commissioned IT professionals for their expertise in system networking and software configuration. It also seeks installers from traditional security channels. A two-pronged approach enables Axis to maximize its industry presence.

Large government or commercial projects will require cooperation between several security giants. Some verticals require specific solutions or particular channels, which will allow manufacturers to differentiate themselves.

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