Business Shift
Other distributors are shifting their core business from reselling to developing solutions. Malaysian Viewtech started out as a distributor with installation know-how and is now transitioning into a solution provider. “We acquired I-Pocket solutions and are now known as Viewtech,” said Alex Ng, MD. Its new business emphasizes software development, featuring hosted video services and integrated security management. The company is expanding in Southeast Asia with its own solutions, an investment which has paid off.
ABUS Security-Center is also embarking on a similar transition. The German catalog distributor began as a lock maker and is returning to its manufacturing roots. It purchased a Taiwanese camera supplier, maintains a dedicated product development team in Europe and plans to expand its branded product portfolio.
Dire financial straits are not the only reason why distributors launched their own brands. For Czech Koukaam, its line of NVRs was in response to customer demand. “They made inquiries about products which weren't on the market — user-friendly and economical IP surveillance devices, including NVRs, to manage network cameras,” said Lubomir Kadaně, Marketing Manager. “We decided to make our own brand to fill the gap. It fits our strategy, which is to offer user-friendly IP surveillance solutions.”
German Santec Video Technologies launched its video line in 1985, making branded products a long-term business. Development is core, with the company holding patents in hardware and software. “We started with OEM cameras, lenses and monitors,” said Lars Diestel, CEO. “Our strategy since then is to offer our customers products which have a high level of quality and fit together as a system.”
Coopetition?
While having a product line seems directly in conflict with represented brands, it is not always the case. In Koukaam's case, it combined Taiwanese hardware and Czech software for a customized four-channel NVR. Koukaam develops its own hardware for video systems with more channel devices. Its strategy is suited for emerging markets, but does not hurt the camera brands it carries as well. The majority of its revenue is made from reselling products, although its branded products make up a larger share each year, Kadaně said.
Listening to the customer is beneficial for security. “Without distributors like us, a lot of Asian companies would never be able to sell and market their products,” Diestel said. “We are also much closer to the customer and know the demands and problems on the customer's side much better than the manufacturers do. So we consider ourselves very helpful for the industry because we also give feedback to the manufacturers.”