China's security "internationalization" dream

In recent years, the intense competition in the domestic security market has caused many security companies to turn their attention to foreign markets. The vast security market prospects in India and the huge security market capacity in North America have brought new development space for domestic security companies. What are the characteristics of security markets around the world?

After years of development in the domestic security industry, product varieties and quantities not only meet domestic demand, but also export products are gradually increasing; the market order from chaos to gradually orderly, there are a certain number of companies from everywhere to everywhere; with the maturity of technology, The diversity of products brings opportunities for security companies, but also brings fierce competition and challenges. In recent years, the intense competition in the domestic security market has caused many security companies to turn their attention to foreign markets. The vast security market prospects in India and the huge security market capacity in North America have brought new development space for domestic security companies. What are the characteristics of the security market in foreign countries in the end? How do security companies fight against foreign trade and become a concern for security companies that are preparing to enter the foreign market?

A large number of Chinese security companies have hit Europe and the United States

At this year's West Coast show, more than 160 Chinese security companies came to the show. At the exhibition site, the booths of well-known companies such as Haikang, Dahua, and Yushi were very prominent. At the same time, the organizers of the conference also set up a Shenzhen pavilion and a Chinese corporate pavilion led by the Electrical and Mechanical Commerce Association to promote Chinese to international buyers and visitors. security product.

According to the latest 624-page US Homeland Security Market Report published by Homeland Security Research Corporation (HSRC), the annual investment and annual purchases of defense safety and security (HLS) and public safety products and services of the US Federal Government and private sector From 48 billion U.S. dollars in 2011 to 51 billion U.S. dollars in 2012, it is predicted that the scale of the U.S. security market will increase to 81 billion U.S. dollars in 2020. Judging from the performance of the US West Exhibition, the prospects for Chinese security companies to enter the overseas market are excellent. Both the brand and the product quality have been increasingly recognized by the international community. The security market of US$81 billion will surely attract more attention. Many Chinese security companies compete, and Chinese-made brands will surely become the highlights of overseas security exhibitions.

The domestic foreign trade market of an enterprise should be born

In order to further expand the security market, in recent years, domestic security companies have extended their footprint overseas, have adjusted their market strategies, enriched product types, and produced corresponding products according to the needs of foreign markets.

Because the domestic manufacturers' brand awareness and technical content have no outstanding advantages, they mainly rely on low labor force, and they mainly rely on price advantage in the international market. Therefore, the overall market strategy of domestic security manufacturers is to go to the low-end market, and rarely to internationally known. Brand competition. Therefore, China's export market for security products is mainly in Southeast Asia, Russia, India, South America and other regions. In Europe and North America, where technology is relatively developed, Chinese companies rarely enter the high-end market in this region.

Participating in foreign exhibitions has become one of the main ways for many security companies to open up foreign markets. Participated in Las Vegas Security Exhibition, Mexico Security Exhibition, Moscow Security Exhibition, etc. to become the main way for some domestic security companies to expand channels.

For domestic security companies, participating in international security exhibitions is one of the important ways to expand the local market. However, with the fierce competition in foreign security markets in recent years, domestic security companies should increase investment in technology research and development; according to foreign security The status quo of the market, the development of marketing methods suitable for the local; improve product quality, improve service quality.

Analysis on the Competitive Advantage of Chinese Security Enterprises

1. Chinese security companies have scale advantages

Chinese manufacturers have economies of scale, which greatly reduces procurement costs, production costs, and costs, thereby providing cost-effective products. The security industry is an industry with significant economies of scale. It mainly embodies: First, the scale of procurement and marketing enables companies to have cost advantages. Second, companies with large scale can establish good downstream channels and extensive sales networks. Cultivate downstream customers. Third, large-scale enterprises have stronger risk resistance capabilities.

2. China's security companies continue to benefit from the bonus of engineers

The security industry has become clear about the trend of high-definition, intelligence and centralization, further raising the technical threshold of the industry. Only a sufficiently strong R&D team can support the company's continuous innovation. The R&D teams of Haikang and Dahua have expanded rapidly. In 2012, the number of teams reached 3,450 and 1,154 respectively.

Haikang and Dahua continue to enjoy the benefits of China’s engineers, and the average cost of their R&D engineers is significantly lower than that of overseas security companies. At the same time, lower costs and continuously increasing high income make Haikang and Dahua’s R&D expenditures account for 6%-9% of revenue, while other global competitors are more than 10%.

The security industry is moving from "Made in China" to "Created in China"

For the construction and development of the Internet of Things and smart cities, most security companies are in a wait-and-see state because they are hardly able to see actual benefits at present. At most, they are gimmicks related to manufacturing, but they are not substantively involved. In actual fact, from the current perspective, the main application of the Internet of Things is still in security, because security is a matter of security, and the construction of urbanization in smart cities is closely related to the lives of ordinary people and needs security.

The security industry includes a series of contents such as product production, engineering construction, and security services. Among them, the production of products has gone from "Made in China" to "Created in China". The rapid development of the industry has resulted in the introduction of high-tech and new security products of various styles and systems, and it has already gone abroad.

According to the "2014-2018 China Security Industry Market Preview and Investment Strategic Planning Analysis Report" released by the Industrial Research Institute, more and more security companies in the security industry have gradually discovered that energy-saving security products will become the security industry in the future. Development trends, energy-saving products are both market demand and market trends. Now that some security companies have begun to engage in research and development of energy-saving products, energy conservation has become a consensus in the industry.

Conclusion

Foreign security market has broad prospects, such as India in South Asia and Brazil in South America. Domestic security companies can not enter the international market overnight, relying on technological innovation, strengthening brand building, diversifying their marketing channels, adopting an international brand strategy, and gaining a foothold in the international market through long-term competition. However, what is worthy of recognition and continued to carry forward is that after nearly two years of development, the road to internationalization of China’s security has slowly taken the big road.