As the economic and political situation in Malaysia continue to develop, it has caused enterprises to cut budgets and allocate less funds to security. These factors have pushed distributors and manufactures alike to re-strategize and re-organize their business operations. Integration and Total Solutions AAC Distrib
As the economic and political situation in Malaysia continue to develop, it has caused enterprises to cut budgets and allocate less funds to security. These factors have pushed distributors and manufactures alike to re-strategize and re-organize their business operations.
Integration and Total Solutions
AAC Distribution has been operating in the local video surveillance and security system industry for 20 years. Dealing primarily with dealers and SIs, it noticed a shift in demand to integration and customization of systems and not only video surveillance.
Thus, the company made changes to its market strategy. “In the past 15 years, we actually only focused on video surveillance. It was only in the past three to five years that we started doing a packaged total solution for our customers because this requirement from the customers kept on increasing,” said Weison Chiang, Product Manager for AAC Distribution. “So our strong point is to do the business and lock down projects by using a total solution.”
AAC Distribution also expanded its product portfolio in an effort to stand out in the local market, which is especially important now as there are many foreign entrants. “We provide multiple, different types of solutions and brands for customer selection, not only a single brand. We do multiple brands, including Hikvision, Samsung, AVTECH, ADV, Draka,” said Chiang. “I think this makes us special compared to others. Most of the distributors, they only carry one or two brands, but we carry more than five.”
End User Targeting and Engagement
The majority of ongoing security projects in Malaysia involves the transition of analog systems to HD analog or IP technology. As the market is flooded with these technologies, it becomes difficult for manufacturers to differentiate themselves as most products appear homogeneous, driving them into a price race to the bottom.
“We cannot fight with other companies on price. We don't want to go into a price war,” stressed Stacy Lien, Department Manager for the International Sales Department for VIVOTEK. Instead the company focused on launching technology and solutions products related to the two verticals that they chose to prioritize: Retail and Transportation.
According to Lien, surveillance is not the focus of retailers anymore. Analytical software such as video content analysis (VCA) are gaining in popularity in this segment as retailers want business intelligence that can enable them to improve operations and sales.
“We sell to distributors, but for any project that our SIs require our support, we will provide them with direct support. Actually, we communicate with our partners via CRM platform to be aware of the project details. If they mention that they require special features that the cameras do not support, our project team will follow up the status and try to fulfill the project specifications,” added Lien.
Prudent Eye on the Future
The Malaysian market is undeniably going through a rough patch as its growth is being hindered by multiple factors. Nevertheless, with the right strategy on the part of both the distributors and manufacturers, they can work together to make the most of the current situation and strategically sow the seeds for future success.