Focusing on vertical markets is not a new concept for the physical security industry. In fact, systems integrators and installers have been specializing in specific end-user industries for decades, with installation, design, service and maintenance offerings targeted to the unique requirements of customers in that industry.
Focusing on vertical markets is not a new concept for the physical security industry. In fact, systems integrators and installers have been specializing in specific end-user industries for decades, with installation, design, service and maintenance offerings targeted to the unique requirements of customers in that industry.
One of the key benefits of this approach is that everything from marketing to pricing can be designed to suit the requirements of the end-user. For systems integrators, this approach can help increase the RMR generated on service and maintenance contracts by offering a customised service that fits the needs of the customer, rather than a generic service that is less likely to be of interest. This is an important element of many integrators' strategy.
A vertical market focus is becoming more common in the video surveillance equipment market. The concept is that a product, such as a network camera, would be designed and marketed towards a specific vertical market. For example, a retail focused camera might have built-in people counting analytics and other limited features to reduce the price of the product. On the other hand, a camera designed for the transportation or critical infrastructure market might have a high megapixel resolution or image quality as well as more advanced video analytics. Despite a higher average selling price, due to the high feature set, this camera would be well suited to deal with the high-end, high security requirements of an airport or port.
Physical security information management (PSIM) platforms look to be the next product area to be vertically aligned. In some cases, this is due to the high number of referral sales which inevitably mean that PSIM software vendors end up designing features that fit the needs of a specific customer type. A project called Total Airport Security Solution (TASS), which is funded by the European Commission, is an example of a vertical market focused PSIM software solution.
While this trend is not a paradigm shift, it is a subtle change to the way that equipment can be marketed in the future. However, inevitably, the success or failure of this approach will be driven by whether the customer is receptive to the benefits of vertical marketing.