From the latest 2009 Security 50 report, Dahua advanced to 19th place from 32nd in 2008. The company achieved record high revenues of US$92.5 million in 2008, enjoying 55.9 percent of revenue growth. In this issue, A&S China Best Buys learn more about Dahua's success from Michael Chen, GM of the Overseas Business Center of Dahua Technology, and James Wang, Overseas Product Manager.
In the 2009 Security 50 ranking, Chinese companies experienced the most growth among Asian suppliers. Dahua is one of the companies that grew despite challenging market conditions. Its revenue for 2008 grew nearly 56 percent, compared to 2007. For Asian DVR suppliers, Dahua placed among the top five in the Security 50 ranking.
Opportunities in Emerging Markets
"The key reason for Dahua's success was our products cater to user needs and different market requirements, thanks to our R&D capabilities and an ideal ratio of price-perfor?mance products," said Michael Chen, GM of the Overseas Business Center of Dahua Technology. "This truly gave us an edge to penetrate challenging markets, such as India, Poland, Brazil and other emerging markets."
In 2009, Chen expected the company's revenue to grow another 56 percent from overseas sales. The key growth factor for 2009 was the "cost-effective" DVR in emerging markets, Chen said. Dahua's portfolio has the right products for these regions which yielded profitable results, such as India experiencing nearly 300 percent growth in 2009.
In different markets, the company has specific marketing strategies for products to expand its business opportunities. Most Asian markets share similarities with China, which allow Dahua products to be adopted by local end users. "Key growth sectors are finance, transportation and public surveillance," said James Wang, Overseas Product Manager at Dahua Technology. "With successful application cases in China, our products support local partners and are deployed for several Asian projects."
Dahua's branding has been well-received in most Southeast Asian countries, such as India and Thailand. Other receptive markets include emerging countries like Turkey, Russia and Ukraine.
Products for 2010
The company has dedicated itself to IP investments, with no doubts about the industry's migration toward IP adoption. "Over the past two years, IP-based solutions have undergone a major transformation," Wang said. "Before, frame rates and image resolution from IP-based solutions were low, while analog solutions offered stable 30 fps and resolution. This year, IP-based offerings are more mature."
Dahua has shown its commitment to network security by joining IP standards bodies, including ONVIF and PSIA. The company will continue investment in camera development, especially megapixel network cameras. "We will continue to accumulate know-how and deepen our experience with IP," Wang said. "Analog cameras continue to dominate the market. But from our standpoint, network cameras are picking up rapidly and may witness a huge increase for demand in 2010 to 2011."
The company will sustain its advantage in storage. For example, the company's new hybrid DVR with its H.264 compression algorithm and higher resolution is expected to be in high demand.
The DVR1604HE-U Hybrid DVR features 16 channels of analog video inputs and four channels of network camera inputs. It can support recording for up to 16 channels at D1 (4CIF) resolution in real-time and four channels of megapixel network cameras at 720 pixel resolution. The DVR supports 16 channels of loop outputs and one channel matrix output.
The new hybrid DVR can support VGA, HDMI (1080 pixel), eSATA and four USB 2.0 inputs. "Furthermore, we will continue to strengthen our software functions," Wang said. "The DVR will support the iPhone platform and other Android-based smart phones."
"We value team work as one of our core values," Chen said. "We consider customers our teammates, as they provide us with local product requirements and market analysis. From our end, we have a R&D team for overseas markets. The team also provides technical support and education to our local partners. These individuals are crucial, allowing us to better understand markets and serve our customers."
From Chen's standpoint, a video system symbolizes a circle connecting everyone. The more possibilities and growth for inclusion, the larger the circle will be. Dahua's ultimate goal is to help customers leverage their business by partnering with the company. Chen believes Dahua has the complete product lineup to satisfy customer needs, enabling customers to enjoy high performance and quality products from entry-level to high-end.