Looking ahead at the game-changers for the security and safety industry, we can expect that there be more changes coming from the industry itself than from the market. In other words, new business operation strategies will soon come into play. From manufacturers to SIs and distributors, all need to stay high-on-alert in the game.
Looking ahead at the game-changers for the security and safety industry, we can expect that there be more changes coming from the industry itself than from the market. In other words, new business operation strategies will soon come into play. From manufacturers to SIs and distributors, all need to stay high-on-alert in the game. Without making themselves versatile enough to respond to the changes quickly, there will hardly be any chance for survival.
Coming from a spectator's viewpoint, the products or technologies that came out in the recent years could barely be called innovative. Market-wise speaking, even though the demands from the emerging markets had been high, the growth somehow hit a plateau in 2013. Therefore, we can only expect a slow growth in 2014, but there will not be anything too exciting from the products or the markets.
The 2 turbulences shaping the new rules in the industry
The excessive supplies and low demands directly cut down the profit of manufacturers, distributors, and SIs. To stand strong and offer professional consultation and services in this unprofitable environment, the key players need to give a thorough consideration on what their core competence is, and what are the necessary adjustments to redefine their position in the industry, including scale, position, and the involvement of people.
As more applications become network based, suppliers in the market cannot purely sell products or simple systems alone. Instead, they are often forced to provide “total solutions” to meet the complex system needs with IP technology. From manufacturers to channel players, everyone should invest in the know-how of network technology, system application, services, and the special needs of different vertical markets.
In addition, as the new survival rules are being structured, the trial-and-error stage could cost a great amount of resources. It is also a critical time to see if companies can reflect how well they have grasped the new needs of the market through their marketing strategies. If the players are not careful enough with their management, they could be easily knocked out of the game altogether.
The 3 new markets to look forward to:
The first market to look forward to is the small and medium business (SMB) market. Judging from the present economic situation, the high-end markets are rather loaded, forcing the battleground to be fought in the SMB level. The manufacturers could now be working with SIs who may not be exposed and equipped with the knowledge of IP application. To ease the transition and deployment for the new SIs, plug-and-play products became ultimately important at this level. Only then, clients would request the total solutions covering from the front to the back ends be provided by the same manufacturer. All leading international manufacturers are taking eager approaches to secure a piece of the SMB pie, such as sector-featured product-lines or expanding partnerships with new channels. The manufacturers in Asia especially are advantageous in this field, because they offer better price performance product. I am certain that the SMB will be the combat zone for the security industry; let us keep an eye out for who stands or fades out in this heated competition.
The second market highly sought-after is the consumer market driven by the widespread usage of smart phones and smart devices in the past 2 years. Before then, the concept of Smart Home was not an easy one to promote to consumers because the link between the application on a computer and its value was not apparent. But ever since smart phones and smart devices became a tangible part of our lives, video surveillance can also be tangible, allowing customers to appreciate the intrinsic value of monitoring shops or homes in their palms. Hence, remote surveillance suddenly becomes a desired tool to protect and manage properties and valuables. This is such an exciting new territory for the security solution providers to shine and prosper. Going from “professional” to “consumer” security means going from “high customization & small quantity” to “low customization & large adaptation.” In consumer security where the concept of 3C applies, a particular security function could be used in quantities 10 times or 100 times larger than that in professional security. The trajectory of the consumer security market is still full of uncertainties; however, new business ventures will certainly offer exciting changes to the industry.
Last but not least, the video-surveillance-as-a-service application (VSaaS) market is rising on a similar cause. For those smaller-scale businesses that lack professionals to design and maintain the system, VSaaS could be an ideal solution to solve the need of securing and protecting assets easily from afar. For example, VSaaS will keep the video recordings on file during a robbery situation; owners of retail shops do not need to worry that evidence could be compromised due to damages to DVRs by the perpetrator. Furthermore, by incorporating VCA to VSaaS, intelligent analysis could be done more conveniently and promptly. In malls, this analysis results can be used in decisions regarding marketing and management--- security solutions can actually help businesses improve their sales strategies, generating a larger return of investment.