As an emerging economy, Philippines’ security market is rapidly growing. Industry players are optimistic that the government projects could get a boost in the short term, especially since the country is going in to elections next year. Max Chayco, President of Philippines-based distributor Netdoc, focusing on providing
As an emerging economy, Philippines' security market is rapidly growing. Industry players are optimistic that the government projects could get a boost in the short term, especially since the country is going in to elections next year. Max Chayco, President of Philippines-based distributor Netdoc, focusing on providing solutions to customers including those in government sector, said that the government might look to use up its budget before the elections, mainly for projects such as city surveillance.
Even though Philippines provides a lot of demand for security, distributors still face challenges from squeezing margins due to the maturity of security products, industry consolidation, and price competition from Chinese products. The company, which works with manufacturers like Sony and ACTi, believes that there is a niche market for them at the high end. He said, “For smaller installation with 16 up to 50 IP cameras, you don't need much information. But, if you go 100 to 150, you need someone to talk to for the solution about the network, storage, how the architecture of the recordings, those things. Then you need someone who has knowledge and experience.” That tells why Netdoc would like to position itself in the high-end market.
Chayco also emphasized that as the market matures, it will be followed by consolidation, and the margin for the sales channels will naturally be thinner, which is very similar to what is happening right now in the IT industry. Therefore, companies like theirs start to think how to bring [customers] more services to fight on the price competition.
“If you have something that others can't replicate, like better services, support, and aftersales support, those things can differentiate you from other companies. You need to differentiate anyway. There are SIs who need your support and services. There is always a niche market, depend how you position yourself.”