The Southeast European security market has been seeing several changes over the past two decades, almost on an annual basis, but over the past four to five years, these changes have been even-more evident.
The Southeast European security market has been seeing several changes over the past two decades, almost on an annual basis, but over the past four to five years, these changes have been even-more evident. The industry has evolved from its initial days to be more open and inclusive, allowing more companies and customers, and in effect encouraging competition.
Dean Klobučar, Export Director at Alarm automatika concurred that the market has changed over the years, as he explained his company's position.
“In last 8 years, the security industry, economy, and market demands have changed in such dimensions that it is hard to compare Alarm automatika then and now,” Klobučar said. “In 2007 we operated in Croatia, and just started to operate in Serbia and Bosnia and Herzegovina, and now we are truly regional company with developed business in 7 countries and in preparations to open one more this year. Three countries that we operate in now are members of European Union that is also big change.”
But some industry players are of the opinion that although the market appears to have developed, it has not occurred in tandem with improvements to product and service quality.
“In most cases, market growth and quality of service are not coordinated and I would like to say that market growth in our business often brings lower level of quality of service and product as well,” said Ivica Brekalo, Director of All for Protection. “You have to agree that quality of service is very important in each type of business, especially in security. Our customers will feel safe only if they can get this feeling from service itself.”
Brekalo added that although the market has grown to become more open, there is both good and bad competition. Industry players have been forced to work extremely hard to make sure they survive the pressure and maintain profit.
Political uncertainties weigh on government projects
In the current market situation, the prospects for government projects are not very bright as a lot of things depend on the local political climate. In Brekalo’s opinion, there is a general lack of awareness on security-related concerns at the decision making level.
“People who make decisions often do not understand what they need, and, in our country, there are just few projects where you can provide a quality security solution which has its purpose,” Brekalo said.
He went further to attribute this lack of awareness as one of the major factors hurting the industry.
“Generally, I can say there are a lot of new people in security with very low level of knowledge and this is the biggest problem for security business, for suppliers and distributors,” he said. “In the end, what will customers get from security?”
Arrival of Chinese security products
Just as in most global markets, Chinese manufacturers have succeeded in making a strong impression among customers in Southeast Europe as well. Companies like Hikvision and Dahua are currently the creators of video surveillance policies in mid and low range production, according to industry players.
The low prices that the Chinese manufacturers offer have been attractive to customers, but Klobučar pointed out that their products are not without concerns.
“We are facing with several problems related to security products from China, such as continuous price-drop and product specifications ‘by request’”, Klobučar said. “This makes customers expect top product features (that product does not have but that are on paper) for less money.”
Encouraging security awareness for better business
In short, ensuring proper awareness among customers has become a matter of utmost priority for industry players in Southeast Europe. Klobučar agreed to this, elaborating on his company’s efforts to facilitate it.
“The only way to bridge this gap is continuous education of installers and end users through seminars, workshops, product demonstrations and feature comparison,” Klobučar said.
Such efforts could be having an effect in ensuring quality and competitiveness. But it remains to be seen how the market conditions would turn out in the future, as Chinese manufacturers continue to produce large quantities of products at low costs.