In the following, a&s interviewed several value-added distributors to see how they actually transformed to become value-added resellers, distributors and wholesalers. Locally, some provide better return merchandise authorization (RMA) and extra benefits for customers, such as free project consultation, warranty expansion, and free technical support. Some of them are also ready to launch solutions for customers, under their own brand names.
Aditya Khemka, CEO and Director, Aditya Infotech, India
Aditya Infotech (AIL), the technology arm of Aditya Group, is India's No.1 security products enterprise, delivering technology-driven security and video surveillance solutions with special expertise in electronic video surveillance products and solutions. AIL caters to 6,500-plus channel partners in more than 300 cities from 45 offices. Aditya Khemka, CEO and Director for Aditya Infotech, said, “In 2015, we will continue to consolidate our relationship with our business partners via best of services, be it pre-sales, designing, logistics, sales, service, commissioning, and tech support.”
Khemka also confirmed that the switch from devices to solution has been significant and was triggered by the complex surveillance needs of wider range of business verticals. He said, “Our channel community actively provided solutions and catered to the varied surveillance needs. We witnessed the introduction of wider range of cameras, which fit into every need — high resolution, hostile environment, fire, temperature, adverse weather, and so on. In 2015 as well, we will continue to focus on diversifying the range of products and solutions to cater to any custom needs.” CP PLUS launched a cloud-based free DDNS solution in 2014. With this service, DVRs can be configured and settings can be saved on the cloud. The latest trend in the security industry is integrated surveillance solutions. The company also provides a comprehensive, all-in-one, cost friendly, and comprehensive framework for specific needs. CP PLUS' latest home solution is a one-stop intelligent, integrated, and interactive solution.
Baltazar Zuniga, Director, TVC, Mexico
TVC is a professional and awarded security device wholesaler in Mexico for systems integrators, installers, and some local distributors. Being in the market for over 13 years, TVC has16 offices and branches in Mexico. Recently, the company just opened another new distribution center with a point of sales in Iztacalco, Mexico City, with almost 3,000 square meters.
Baltazar Zuniga, Director of TVC, said IP adoption in the Mexican market still remains very low, and IP is used mostly in large-scale, infrastructure, and government projects. The ratio for the number of IP versus analog systems is probably around 25 percent against 75 percent. There are several factors that cause the low IP adoption in this country: Mexico is a quite price-sensitive country, and also its IP infrastructure still couldn't be compared with other developed countries. Zuniga added, “It also explains why the latest HD-over-coaxial solutions, such as HDTVI and HDCVI, look very promising in Mexico.” Although the IP penetration is comparatively low in Mexico, TVC still has worked with several leading brands, such as VIVOTEK, for more than 10 years, and the company just recently started the partnership with Bosch.
In this price-sensitive country, TVC has started to become more focused in solutions since two years ago in order to get more involved in project markets. Zuniga said there are two ways for them to offer solutions. “One is through the original system/solution suppliers. For instance, VIVOTEK, Dahua, and Bosch provide solutions themselves. So, we just join them in the trainings for our channels. Otherwise, we cooperate with some suppliers to make some changes on the firmware in our device to make our products more compatible with other device. Recently, we tried developing a time-attendance system, particularly designed by ourselves through cooperation with ZKTECO. We worked with our own engineers to develop a time-attendance system using fingerprint recognition, and the connection can be through a cloud server. When the device sends the information to the server, the management in the headquarters can see all the information from the devices. With fingerprint recognition, the employees can freely go to any offices of the company.”
Maulik Shah, CEO, Facility Security Division, Autocop India
Autocop Facility Security Division, having a complete distribution and service network across India, is a one-stop-shop for all security and safety needs that caters to individuals and organizations across verticals. Maulik Shah, CEO for Facility Security Division at Autocop India said, “We have grown by 35 percent year-on-year and expect 40% growth in 2015. We have shed non-performing brands and been focusing on key brands and models to drive growth next year. We are also investing on refining technical and sales team and planning to expand in tier two cities. In addition, we would add brand-specific team members and business development teams for certain verticals.”
Maulik also said the company has moved from box selling concept to solution offering concept and is a valued-added distributor, offering technical end-to-end solutions, paid commissioning, and training services. He continued, “We are reaching out to key specifiers via roadshows and events and closely working on key projects that help partners win the case in their favor. We ensure that our partners are well trained and become more responsive in the areas where they are weak. We also reach out to end customers jointly and offer proof of concept, design assistance, and technical support. Recently, besides video surveillance, we also have added access and entrance control over last year which has given us new customer base.”
Leonard Tye Lee Yew, Business Development Director, Bricomp International, Malaysia and Singapore
Bricomp International, a major distributor in Malaysia and Singapore, has embarked on a transformation journey to become a total security solutions provider since 2011. Leonard Tye Lee Yew said the company has grown its team to include solution specialists and architects that can help customers design and tackle the most stringent requirements. “We've also spent many hours in educating our partners (systems integrators) in the latest IP solutions and technologies,” Tye said.
Introducing a partners' program is key to a successful relation with Bricomp's partners as this is a form of recognition to them. “Our partners' program includes the three main elements of support to our channel partners: sales and presales, marketing, and after-sales and technical. As projects become more complex, we have also started introducing professional services to our partners. In the event a partner needs a certified engineer to help with testing and commissioning, we can offer this option to them,” he said.
“We are also working with our partners to provide budgeting for customers planning to migrate to a hybrid/IP solution with the integration to electronic access control systems. The process is longer as educating the end-user about their options and the available technologies takes time. However, we find this segment very potential for real growth as systems start to age and products become obsolete and can no longer be supported/repaired,” he said.
Feodor Zhidomirov, CTO, Luis+ Security Systems, Russia
Luis+ Security Systems is the official distributor of many well-known Russian and foreign brands. The key points of its strategy are to work both in the field of simple distribution and in complex project realizations by selling affordable security products and supplying expensive security products. “We are the distribution partner for many Russian leading security manufacturers, such as Bolid, Argus-Spectr, PERCo, ITV-AXXON, and foreign leading security manufacturers such as Bosch, Honeywell, Pelco by Schneider Electric, Axis, Panasonic, Samsung, and Hikvision. We do not need to change anything in our strategy,” said Feodor Zhidomirov, CTO of Luis+ Security Systems. “We get a very high customers' satisfaction by suggesting complete security solutions to our customers via our strong marketing strategy, technical engineers, fair price, and technical training center that provides legal certification on different brands. We also develop our own OEM product lines: LTV (video surveillance) and LPA (PA),” Zhidomirov continued.
Mansour Farzaneh, Chairman, PFN Technology, Iran
PFN Technology is a major distributor of IP video surveillance and network devices in Iran. Mansour Farzaneh, Chairman of PFN Technology stated in 2015, there will be more challenges and competitions in the security market (Iran), which mostly comes from low cost brands like Chinese brands. “Our plan is to compete with them by reducing our cost, expanding warranty to three years, increasing free technical and marketing supports in training and exhibition, and free project consultant,” commented Farzaneh.
“We have free project consultants because we want to take care of our customers more. We want to have a more frequent communication with them to help find out what kinds of products and solutions are suitable for them since mostly the customers don't have enough product knowledge,” he continued. In addition, return merchandise authorization service and free technical support are also very important for us to get a project.
Moreover, to gain more market shares, “We need to provide our partners with solutions, not products only. We bundled cameras and NVRs as total video surveillance solutions for educational centers, hospitals, and healthcare offices. We also have developed and expanded our product range, for NVR, PoE switches, and software for better support for our partners.”
Rustu Arseven, GM, Tesan Iletisim A.S., Turkey
As a value-added distributor of many global brands, Rustu Arseven, GM, Tesan Iletisim A.S., Turkey shared the following: Tesan is unfortunately challenged by companies which import cheap, low-quality, and nonstandard equipment with false information in Turkey. With our sales, technical, and marketing teams we are able to stand strong against this price-oriented trend. As a result of our effort we have managed to grow 20 percent in security industry in 2014, compared to 2013. We are expecting to manage even better in 2015 due to our investments for especially Ttec surveillance systems, which is our own brand.
Tesan is already a value-added distributor which has more than 2,000 partners including resellers, systems integrators, and chain markets. We have been offering our brands to consumer, SMB, and enterprise markets. Next to our own brand Ttec, we have distributorships of so many global brands such as LILIN, Qnap, Engenius, Dell Sonicwall, Jabra, Zte, Billion, Panasonic (DECT phones), Sony (video conference), Energizer, Samsung (digital camera), Nikon (digital camera), and Verbatim (LED). With our extensive portfolio of network and telecom products we have been offering our partners the comfort of supplying all their communication and networking product needs from one point, as well as providing technical support even on the field most of the time. In addition to what we always have been doing, we have taken some aggressive actions with our Ttec brand and enhanced our surveillance system solutions in 2014.