Policy Standard: Regulating the Security Market Entry Point

Editor's Note: With the development of the security industry and the constant emergence of new technologies and products, the importance of the security industry standard has become indispensable. The entire security industry is entering a golden period of development. However, the non-standard market has seriously affected the development of the security industry. So far, there are more than 100 domestic security standards, but there are still many deficiencies that are not conducive to market development. Standardization of policies is the starting point for regulating the security market.

Security market needs to be standardized: price, quality, sales channels Tianjin Tiandi Weiye Digital Technology Co., Ltd. General Manager Dai Lin said that this is a growth period, is a very normal phenomenon. In any industry start-up phase, the market is immature, the demand is very strong, the threshold is low, and when there is no leading brand enterprise, “hegemony for hegemony” is inevitable. Every company is using different tricks to develop and expand the market. . In this case, the price war is one of the strategies. This situation generally has a period of time. I think it is the most obvious and crazy in 2000 or so. It gradually weakens after 2003. At that time, the strength of the company was not great. In order to fight the price war, only the quality was shrunk. Because companies do not have a brand, most companies have only a few dozen individuals. It is difficult to establish their own channels across the country. Therefore, it was very confusing at the time that the OEM and the stocker were being sold.

This phenomenon still exists in individual product lines, such as front-end product lines such as cameras. The number of such enterprises is relatively high, the technical threshold is not too high, and there is no strong brand. Therefore, in this situation, it is easy to create a competitive situation. However, in the last year or two, the front-end camera brand has been gradually strengthened. I estimate that this vicious competition will be better. At present, in the tendering of major projects such as the “Safe City”, the number of security companies actually participating in the project is also quite a few. The chaotic competition such as price war is not obvious. In some small projects, due to funding issues, price wars are still widespread. However, in the field of DVR, such as Hikvision, Zheyi-Dahua, is already the leading enterprise in the industry, and branding is very clear.

Ye Chen, chairman and CEO of Tianjin Ya'an Technology Electronics Co., Ltd., said that first of all, the quality of security products was mixed. Compared with other industries, the security industry is a relatively small industry. The barriers to entry are relatively low. There is not much technical content in low-end products. The core technology of high-end products cannot be mastered, resulting in the influx of small companies and even hand-workshops. Naturally, product quality cannot be guaranteed.

Second, price competition is vicious. The security industry in the early years is a profit-making industry, so follow suit (this is also a commonality in the growth process of all industries). Companies that are a bit concerned with security (such as traditional home appliances, IT, etc.) have made great inroads, foreign brands have entered the domestic market one after another, and small companies have been established—it naturally comes with price competition.

Third, poor channel construction, services are not in place. Building a wide range of effective sales channels requires companies to spend a great deal of effort. The management channel is also a deep knowledge, and for the vast majority of small businesses, this cannot be achieved. Whether the channel is perfect or not determines the timeliness and effectiveness of corporate services. In addition, the price war sacrifices the profits of the company. Without profit, it is natural that no service is provided. Therefore, there is a wide range of situations in which the service is not in place in the security industry.

Policy standards: Regulating the security market entry point Back in 2010, whether the local policy standards or the introduction of national regulations, security standards have reached more than 100. From a development point of view, market standardization and openness are inevitable trends, which are beneficial to the control of the entire security industry's costs, marketing channels, and technological innovation, and are also conducive to the survival of the fittest and the elimination of the market. Relevant standards and standards are the basis for the stable development of the industry. At the current stage, the development of the market and the application of products are in urgent need of the improvement and importance of security standards.

According to the survey, companies are now paying more and more attention to the establishment of industry standards. The ONVIF standard, PSIA standard, and HDcctv alliance have become more influential industry standards in the security industry. It can be said that with the emphasis placed on security standards by security companies and the importance attached to the national security industry standards, security companies in the future will narrow their distance from industry standards.