Chinese brands will achieve its full potential to tap into the global market depending on its highly competitive domestic market and developing security industry. A&S recently conducted an annual survey of "Top 10 Chinese Security Brands" toward local system integrators, distributors and users. Many of the winners are awarded this prize for four years, which exemplifies the stable and mature development of many Chinese enterprises. Now seems to be the right timing to knock the door to the world for Chinese. Professional buyers from other part of the world look forward to understanding Chinese industry and manufacturers for the possibility of future partnership.
Why Chinese Security Brands are Important ?
China is going to replace U.S. as the biggest market and shake the world within its fast-growing economy. In the end of 2007, US had a slowdown in its economic growth. However, on the other side, China within its high economic growth rate keeps a good balance with the U.S. figures. This example simply explains how important the Chinese market plays in the global economy now and how China is going to influence the world economy in the future.
Enormous Market and Global Manufacturing Center
China will be crucial regarding its market size and the industries. In security, Chinese market for electronic security systems will become the largest market in the world when it overtakes North America in 2018, predicted by i&i limited/Proplan. China currently is less than 25 percent the size of the North American market now. The total electronic security systems market in 2006 was worth US$1.77 billion. China attracts large foreign investment from many international companies. Those internationally-known players in security, such as Honeywell, Bosch, Tyco, GE, Pelco and Siemens, all gain foothold in China. It is easily found that Chinese brands, through the competition with those foreign brands these years, have become more competitive than ever. In A&S annual survey of top 10 Chinese security brands in China, many of which have won for four years continually. Especially, in the industries of digital video surveillance and intercom, Chinese brands even gain much favor compared to foreign brands here in China. With the increasing importance of Chinese market to the world, the brands and enterprises growing here are assumed to possess the strength to survive in the world market.
In addition, Chinese production of electronic equipment posts strong growth. Product ion revenue for electronic equipment in China increases by an estimated 23.2 percent in 2006. In 2011, aggregate revenue for 51 selected electronic types is projected to reach US$740 billion. Total production of security products in China grows from 148 million in 2005 to 193 million in 2006. According to the Ministry of Commerce of the People's Republic of China, the variety of commodities in the whole world is around 5000 items. The items imported from China are about 2000 items. China is the top five suppliers of 200 items in those 2000 ones. About 80 items, China was ranked as the number one supplier. In 2007, the amount of import/export revenue is over $2.1 trillion and China's trade surplus reaches $250 billion. In many US shopping malls, 70 percent of the commodities are "made-in-china." In the past 10 years, Chinese products have saved around $600 billion for Americans. China is going to become the center of the global manufacturing in all industries.
According to the prediction from "The world in 2008" of Economist, "the world will become more familiar with Chinese corporate names in 2008. The Beijing Olympics Games provides a great chance to advertise their logos to the world. A higher international profile, alas, hardly assures cross-border success. No Chinese company has yet joined Japan's Toyota or South Korea's Samsung on the global A-list, and none is likely to do so in 2008. But it will not be for lack of trying." China will continue to overtake America in all sorts of fields. In 2008 Chinese demand will for the first time become the main driver of world economic growth.
Booming Chinese Security Industry
Due to the booming economy, there is an increasing number of security enterprises in China. The average number of employees in one Chinese company is about 120 people and the total revenue amount is about $30 million. The business scale for security enterprise becomes bigger. 27 percent high development of Chinese security industry is even more than the average industrial development by 12 percent. Chinese security industry is right now hitting its peak. Most important, eight enterprises and nine kinds of product items in security are awarded "Chinese famous brands."
Along with the industry keeping developing and some enterprises becoming bigger, Chinese brands are expected to take up 60 to 80 percent market share in China around 2006 to 2010. The technical innovation becomes the main direction for the corporate development and so as the big progress in the middle-to-high end market. Within the bigger market share they have, Chinese manufacturers would focus more on the branding and the export will become the main direction for some leading Chinese manufacturers. Globalization will push the Chinese industry to upgrade and evolve. China indeed will become the basis of global security manufacturing, which gives Chinese security enterprises a big opportunity to grow in the global market.
International Buyers' Positive Feedback
Worldwide buyers are going to be much interested in buying Chinese products. From the survey we did this year within 100 buyers who are interested in buying Chinese products, we found that the 65 out of 100 interviewees have the 5-10-year experience doing business with Chinese vendors. The product items selected in their shopping list within DVR, CCTV cameras coming first. Then, door controllers and alarm control panel are their secondary choices. [See the chart I for more information.]
The strength of Chinese products is still the price. Some other factors reduce the total capability of these Chinese manufacturers. The biggest concern is still the stability and quality of China-made product. The design of the appearance comes to the second place. In addition, the prolonged delivery time and shipping issue is the barrier for those international buyers to do the business with Chinese. Then, the unclear description in their website also stops buyers from knowing Chinese brands/ enterprises. [See the chart II&III for more information.]
Although the impression of "Chinese manufacturing" on international buyers is varied by many different factors or events, getting to know the Chinese industry still provides many business opportunities for the worldwide buyers in the future. In the following sections, by unveiling the result of 2007 top 10 Chinese security brands, A&S introduces some leading Chinese enterprises to overseas. Hope this report can provide some reference to your future purchase and doing business with Chinese.
2007 TOP10 Chinese Brands
Top Chinese Brands Eyeing the World Market: Report of 2007 Top 10 Chinese Brands
Local Satisfaction for Chinese Brands