The development of the industry should be gradual and progressive. “The large-scale events and activities organized in recent years in China have indeed intensified the development of the industry. Skyworth Qunxin has also benefited a lot.†Skyworth Group's security company Shenzhen Skyworth Qunxin Security Technology Co., Ltd. Hu Zhaohui, general manager of the company, told the Securities Times reporter. Olympic Games, Asian Games, World Expo, and the forthcoming Shenzhen Universiade will all use Skyworth Qunxin's products.
This is also the consensus within the security industry. Vice President and Secretary General of the China Security Products Industry Association, Lou Xiufeng, clearly pointed out in the statement on the development plan for the “Twelfth Five-Year Plan†of China’s security industry that during the “Eleventh Five-Year Plan†period, it was accompanied by sustained and rapid development of the national economy. With the vigorous promotion of government departments and the promotion of large-scale projects and activities such as the “Safe City,†“Olympic Games,†and “Expo,†China's security industry has maintained a momentum of rapid growth, with industries, companies, technology, markets, and corporate brands. Cultural development has been fully developed and improved. The "Eleventh Five-Year Plan" has become China's security industry's history with the fastest development and the best economic and social benefits.
However, major players in the industry also believe that the rapid development of the security industry in recent years is not entirely dependent on these large-scale activities and major projects. Hu Zhaohui told reporters that there is no way for any enterprise or industry to rely on the development of strong points. The development of the industry should be gradual. In fact, there is still a long way to go in China’s urbanization process. The construction of safe cities will gradually deepen; as the economy develops, people’s demand for security will increase. Another key factor driving future demand is that security construction has become An integral part of the construction of all industries, any new projects in the future of social construction will lead to an increase in the demand for security; the increasing capacity of these markets, the addition of new projects and the transformation of old projects are all the needs of the security market. Therefore, the end of these activities and large-scale construction projects will not have too much impact on the security industry.
Dacong Planning Manager Zhao Congjie also stated that the development of China's security industry is not related to the hosting of large-scale events such as the Olympics, Asian Games, and Expo in recent years and the construction of a safe city. Significant projects and systematic construction projects only constitute part of the development history of the industry, accompanied by the development of the industry, but it cannot be directly understood as the driving force behind the development of the history of the industry. On the one hand, the rapid development of the industry is driven by the internal technological innovation in the industry; on the other hand, it is the extension of the external demand, that is, the opportunities brought by the development of security applications from single to multiple development.
Liu Xiang, director of Hikvision, believes that the market demand for the security industry will continue to grow rapidly. The reason is that governments, enterprises, and even individual families around the world are increasingly paying attention to the construction of security, especially video surveillance systems, which will create rigid market demand. At the same time, the development of various new technologies will bring about the emergence and growth of new market segments in video surveillance. In addition, the globalization trend is accelerating. With the proliferation of technologies and capital throughout the world, and the emergence of emerging security markets and security companies, the scale of cross-border cooperation, mergers and acquisitions and global purchases has further increased. The production and R&D of multinational security companies is further developed. With the shift of emerging market countries such as China, the global market space will be further developed.
The China Security Industry Association is also optimistic about the development prospects of the industry. The industry's “12th Five-Year Plan†drafted by the association proposed that the annual growth rate of the security industry during the 12th Five-Year Plan period should reach 20%, and the total output value in 2015 should reach 500 billion Yuan. By the end of the period, the industry’s overall scale will have doubled. aims. Yan Xiufeng thinks this pace of development is reasonable. The basis is that the environment for the “Twelfth Five-Year Plan†security needs still exists, the potential for continuous deepening of application remains strong, and the potential for technological development will have an explosive effect, and digital city construction and security Internet of Things will become new strong growth points. The sharp increase in the performance of Hikvision and UOB in the first quarter of this year also confirms this trend.
The market is highly fragmented and fiercely competitive On May 25, 2011, Canon Japan officially announced its entry into the Chinese security system market. Mitarai Chairman of the board of directors of Canon Inc. stated that China is the most important country to invest in. In the future, it will concentrate on talented personnel, material resources and capital and other operational resources to develop strong marketing and advertising in China and gain more in the Chinese market. Users and product sales, and strive to reach the main supplier of the Chinese security market within three to five years. It is reported that currently Canon is mainly launching security surveillance products such as analog surveillance cameras and network surveillance cameras, targeting government projects, financial projects, smart building projects, and safe city projects.
In fact, as early as before Canon, American Honeywell, IBM, Tyco, Germany's Bosch and other old security companies have entered the Chinese market, and occupy a large market share in China's high-end security field. What is worth noting is that due to the high correlation between the security industry and traditional mature industries such as electronics and IT, traditional home appliances and IT companies that have been in a state of fierce competition and low profit for a long time have also targeted the Chinese security industry and have begun to get involved.
"Nothing comes in that security is a 'blue ocean' and only when it comes in is the 'Red Sea'." Hu Zhaohui said in an interview with the Securities Times that he is currently evaluating the different mentalities of the Chinese security industry inside and outside the development prospects of China's security market.
According to the reporter's understanding, there are as many as 10,000 companies in the security industry at large and small. This is a highly fragmented industry and fierce competition within the industry has long since begun.
Zhao Congjie believes that the current competition in the security industry falls into two categories: one is among the low-end cottage enterprises, and the other is among the enterprises that produce high-end products. Zhao Congjie told reporters that based on Moore's Law in the IT industry, UOB's shares with R&D advantages will launch a series of new products every year, thereby raising the technological level and competitive barriers of the entire industry, so that small businesses will naturally be eliminated. This will be an objective law for the development of the industry.
Dahua believes that overseas large-scale security companies entering the Chinese market are mainly engaged in overall solutions and do not involve equipment supply. Therefore, they have no competitive relationship with domestic enterprises. Moreover, in terms of equipment supply, with the accumulation and progress of technology and cost advantages, domestic industry giants already have the strength to participate in international competition in some areas. For example, in the field of storage products, China’s industry giants have defeated overseas manufacturers to become international leaders. Taking DVR products as an example, the industry’s first-tier companies have surpassed Japanese and Korean companies. As Chinese companies will continue to enjoy the “demographic dividend†brought by technical engineers, Chinese companies will be more favorable in international competition.
In fact, because large-scale security projects such as safe cities and smart cities often involve issues concerning the security of state secrets, overseas security giants have recently been affected in obtaining these large-scale projects. IBM, the author of the concept of "Smart City," frustrated its success in China's security project.
Hu Zhaohui believes that foreign-funded enterprises have the advantages of brand, technology and capital, but domestic-funded enterprises also have their own advantages in understanding the market. This includes channels, customer resources, technology, rapid response to customer needs and service networks.
Hikvision's director secret Liu Xiang said that although foreign companies have advantages in technology brands, Hikvision also has its own unique competitive advantages. For example, the company currently has more than 1,000 R&D professional teams and is a global video surveillance industry. One of the largest R&D teams. Moreover, the company has mastered all HD camera core technologies except sensors and has the ability to participate in global competition in the network camera field. In addition, Hikvision also has increasingly sophisticated marketing channels covering the global coverage and a complete product line.
The technical strength is still to be improved. Although in recent years, the technical strength and industrial scale of Chinese security companies have been greatly improved. However, China's security industry is still a late start-up emerging industry. There is still a gap between strength and foreign companies.
Hu Zhaohui told reporters that the company’s core competitiveness comes from technology. Skyworth Qunxin also needs further investment in this area. The focus of Skyworth Qunxin in the next few years is to continuously strengthen the technical strength of R&D and strive to develop products with competitive advantages.
According to the “12th Five-Year Plan†of the China Security Association, the key technologies for future industry development are mainly the development and industry of key technologies such as intrusion detection technology, feature identification technology, chip technology, system management and control, image intelligence analysis, and security evaluation technology. The development of cloud technology research and application, display and storage technology, explosion-proof security inspection technology, and physical protection technology; improvement of software platform development capabilities.
However, Zhao Congjie said that although the company will make some investment and preparations for the preparation of industrial extension, it will not invest a lot. The reason is that from the perspective of the current input-output efficiency, the turning point of industrial extension has yet to come. Therefore, Dahua will invest more energy and resources in improving the company's product line so that the company will have a more comprehensive product line. At the same time, Dahua will also strive to increase the domestic market share of the company's products and strengthen overseas market development so as to continue to maintain its leading position in the industry.
Multi-party injection into the security landscape of China's security industry affected
As major events such as the Olympic Games, the World Expo, the Asian Games, the Universiade, and other major events are held in China, and major projects such as the “National Emergency Response Systemâ€, “Safe Cityâ€, “Safe Campusâ€, and “Strong Technology Police†have been launched, the security industry is One of China's fastest growing segments in recent years. However, in 2011, an uneasy mood for the future development of the industry quietly breed. The influence of interest-driven international security giants and domestic traditional home appliances and IT companies that have entered the Chinese security industry one after another is of concern for the current competitive landscape of China's security industry.