As the Chinese economy continues to boom, the security industry leaps forward to an exciting 2011. A&S explores what's ahead for product development and vertical markets.
Spurred by IP, Chinese manufacturers have embraced HD technology. HD will force key players to migrate to IP in response to increasing demand. In addition, enhanced business practices will help security providers survive a rigorous and competitive market. Several measures include corporate restructuring, product innovation and better channel management.
Chinese security tends to be fragmented, affirming the importance of a vertical-specific approach. With targeted verticals, suppliers can provide solutions suited for certain verticals. As some vertical markets are regulated by stringent government rules or international standards, a market-focused approach streamlines product development.
A company with a clear market position will stand out from its counterparts. Some international brands strive to distinguish themselves from Chinese competitors by adopting different marketing strategies.
Dallmeier electronic serves high-end markets by developing customized HD solutions, to stand out from the pack. Spanish manufacturer Fermax offers stylish product design and complete after-sale services to customers. Branding and a clear market position will be mandatory for security companies to stay healthy in China.
Security suppliers are broadening their product offerings to meet various client demands in China.
International players such as Bosch Security Systems, Honeywell Security and Tyco Fire & Security have expanded their product portfolios to cover video surveillance, access control and intrusion. Sony Electronics launched IR HD cameras, completing its product line for greater customer flexibility. Samsung Techwin, on the other hand, has made strides into access control and intrusion. The experience will therefore lead to comprehensive solutions, enabling a one-stop shopping experience for end users.
However, success in China stems from more than just great product offerings. Vertical-market coverage, partner development and sound corporate management will be major concerns as well.