A new report from IMS Research, “The East Europe and Russian Market for Video Surveillance Equipment,” has found budget-constrained Russian customers are choosing lower-cost surveillance solutions from local suppliers, instead of more costly international brands. However, with the latest data indicating economic recovery in Russia, will the success of local suppliers continue?
The threats of terrorism and high crime rates have stimulated the requirement for video surveillance equipment across Russia in recent years. However, due to tough economic conditions, the budgets and available credit for video surveillance deployments have dropped considerably. There is still a demand for video surveillance products; however, customers have become more cost-conscious, and this, in turn, has led to an increase in sales for local video surveillance equipment suppliers in 2009 and the first half of 2010.
William Rhodes, Research Analyst and Author of the report, said, “Russian suppliers offer an appealing solution to customers looking to install video surveillance equipment on a tight budget. The equipment may not have the same feature set as some international brands, but it fulfills the customers' basic requirements.”
Rhodes continues, “Ironically, many Russian suppliers have benefited in the past 18 months from the tough economic conditions by creating a strong position for themselves against overseas brands. That said, it will be tough for them to continue this success as they lack the marketing budgets and diverse product features that are needed to compete against the multinational, overseas brands. Russian brands can defend their new position through increased investment in marketing, strengthening their sales channels and partnerships, and producing products that target the lucrative enterprise and project market.”