Since 2010, competition among manufacturers in China, Taiwan and Korea has heated up ferociously. The rapid rise of Chinese security is catching up to its overseas counterparts, changing Asian dynamics. Chinese security companies have matured, with more players understanding overseas markets better. Coupled with low labor costs, these factors accelerate the profile of Chinese leading companies. The first competitors hammered by Chinese manufacturers are Korean companies, particularly DVR manufacturers. a&s talked to Korean companies about how they deal with challenges. Their strategies include stronger quality and product differentiation. They also bring new technologies to market sooner and work closely with overseas clients. Most importantly, Korean manufacturers are crystal clear about their future directions. The following companies offer insight into Korean security.
Since 2010, competition among manufacturers in China, Taiwan and Korea has heated up ferociously. The rapid rise of Chinese security is catching up to its overseas counterparts, changing Asian dynamics. Chinese security companies have matured, with more players understanding overseas markets better. Coupled with low labor costs, these factors accelerate the profile of Chinese leading companies. The first competitors hammered by Chinese manufacturers are Korean companies, particularly DVR manufacturers. a&s talked to Korean companies about how they deal with challenges. Their strategies include stronger quality and product differentiation. They also bring new technologies to market sooner and work closely with overseas clients. Most importantly, Korean manufacturers are crystal clear about their future directions. The following companies offer insight into Korean security.
HDPRO
HDPRO was established in 2004 and began to focus on cameras in 2007. While the company is new, its management team is made up of industry veterans. It specializes in mechanical design, making cameras easier to install and adjust, while increasing stability and reliability as well.
In the face of Chinese competition, HDPRO distinguishes itself with high-end cameras, said Yoon-Hwoa Ko, President of HDPRO. It dedicates 10 percent of its revenue to R&D, quickly responding to customer needs through intensive trade show attendance and collecting customer feedback. This is demonstrated through 10 new product launches in three month, adding to a portfolio of more than 500 products.
The company grew more than 50 percent each year, even during the economic recession in 2008 and 2009. Most products are brought to market quickly, making product development this company's strength.
HDPRO's sales are evenly split between OEM and branded sales. Its own-brand sales are carried by distributors in different countries. Sales growth comes with the expansion of local distributors.
With the emphasis on R&D, HDPRO currently holds more than 100 patents. Some new developments include:
● Dome cameras with an air purifier function, ideal for dusty indoor environments, such as basements.
● Dome cameras with wireless transmission and wireless power: Connecters are often the Achilles' heel of IP66-rated cameras. Fewer wires also save installers time for cabling.
For now, HDPRO will not develop network solutions because Ko believes the analog market is still large enough. The energy and strength of HDPRO should be saved for enhancing qualities. Ko's focus is not on beating the competition but overcoming challenges.
MicroDigital
Established in 2007, MicroDigital believes own-brand sales are the only way to survive in a highly competitive market. It works with professional distributors to target the middle and high-end markets. In France, for instance, the company partners with local distributors, who set up an exclusive sales team for MicroDigital.
MicroDigital‘s sales and R&D teams focus on developing distinctive features to set the brand apart and create a market niche. The company produces a complete DVR product line, along with a series of network megapixel cameras and HDcctv cameras.
It also launched an IR bullet camera, which enables focus and focal length control via coaxial cabling. MicroDigital's main market is Europe, with planned expansion into the Middle East. Its sales are evenly distributed between DVR and camera products. The company's distinctive approach puts it in a position that is not threatened by Chinese competition, said Bruce Lee, Director of MicroDigital.
Regarding the potential of HDcctv, Lee said that most 16-channel DVRs support two channels for HD and will be upgraded to four channels of HD. He also believes that HDcctv prices will drop soon. While IP surveillance remains dependent on bandwidth and other networking issues, HDcctv offers a good alternative. Lee is optimistic about the future of HDcctv in the next two to three year, as more products reach the market and become more affordable.