Camera price war is only a false alarm? What is the purpose behind

According to the laws of communication, information will be intentionally and inadvertently added to some impurities during the transmission process, so that the information from the source will become more and more distasteful. The news about Hikvision and Daewoo's launch of low-cost, low-end cameras was constantly misunderstood in the process of dissemination, and eventually it was passed as a "big price cut" or even "a possible price war." Three people became tigers, and panic spread in the rumors of S4, and finally to everyone's danger. For enterprises, price is a sensitive topic, and price war is a challenge that must be faced by business decision makers who are in a headache and unable to stop.

At about this time last year, the industry focused its attention on the "DVR price war." Today, the industry is still talking about this war. At the time when the DVR price war last year was nearly a year, there was news that a new round of price war might erupt in the industry. The news to be confirmed was directed at Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as Hikvision) and Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as: Dahua). However, the rumors of the price war in the field of battle is no longer in the DVR field, but the two companies added a new product line camera.

According to the survey results, there is no price reduction for the cameras of Hikvision and Dahua, and the price war is purely non-existent. Influencing the sensitive nerves of the industry camera companies, in fact, is a series of low-end camera products that Hikvision and Dahua have launched at a relatively low price. As for the cause of fear in the industry, it was said that this was related to the DVR price war last year.

Panic: Is there a price war in the camera field?

In response to this, various rumors have even spread in the industry, which has caused many insiders to panic. Some industry camera manufacturers are concerned that Hikvision and UOB will stage a DVR price war in the camera field last year. In May last year, Dahua took the lead in launching a major price reduction for DVR products, followed by DVR major brands such as Hikvision, Hanbang Gaoke, and others, and staged a “DVR price war” with a superstar gathering in the industry. Concerned about the manuscript has detailed report on this). In the end, many cottage manufacturers and SMEs closed down in this price war.

As an industry leader, Hikvision and UOB hold most of the domestic market share, and each step of the market strategy will have more or less impact on other companies in the industry. Dahua sneezes and the whole industry follows the cold. Their production and sales of camera products hit a selling price of around 200 yuan, which actually made many camera manufacturers somehow "intimidating".

Due to the lack of adequate understanding of this situation, the industry has gradually become ambiguous. As a result, more and more people are convinced of the possibility of Hikvision and the U.S.-led camera price war. According to what the reporter learned from the survey, the industry hopes the following questions will be answered.

First, Hikvision and Dahua's "price cut" on cameras is a normal strategy for market expansion, or is it a precursor to launching a price war on cameras? Second, what is the impact on the industry? What is the current situation of second- and third-line camera brand manufacturers that account for most of camera manufacturers? Third, will Hikvision and Dahua's “low-priced” products accelerate the new round of reshuffling, and promote the camera brand to a more centralized pattern?

How come new products "cut prices"

In order to clarify whether Hikvision and Dahua really reduced the price of camera products, the reporter interviewed several companies in Shenzhen, Guangzhou and Huizhou. The opinion of most business executives shows that Hikvision and Dahua’s cameras have not “greatly reduced their prices” but have launched a series of low-priced low-end products.

On May 9th, Mao Jiayong, general manager of Guangzhou Bohe Electronic Co., Ltd., said in a phone interview with this reporter that Hikvision and Dahua did not reduce the price of their original cameras, but only to a few low-end economic products. The price is lower. "Every company has its own customer channel and its positioning is different. In my opinion, Hikvision and Dahua's approach is only a formal market strategy," Mao Jiayong said.

Huang Yaoming, general manager of Guangzhou Longzhou Electronics Co., Ltd. has another interpretation of this matter. He said that Hikvision, Dahua’s products are like iPhones. In his opinion, no one does not want the iPhone to cut prices. Hikvision and Dahua launched several new low-end products to expand the market and consumer groups, just to meet this market demand.

Hou Gang, the general manager of Diwei Le (China) Shenzhen Technology Co., Ltd. (hereinafter abbreviated as DeVille), has been paying close attention to the development of the entire camera industry for a long time and has a profound analysis and understanding of the market dynamics of the cameras. He told reporters that in fact, as early as February of this year, the industry reported that Hikvision and Dahua wanted to introduce low-priced products. At that time, it caused many companies to panic. However, after the related products went public in March and April, he observed that the industry did not have a great impact, and he was steadfast in his heart.

“The price reduction is based on the original price of the same product, the price will be reduced. And the low-priced products introduced by Haikang is a new product, just take the low-cost route on the market, there is no product of the same model before, not to cut prices.” Hou Just said that the prices of low-end products launched by Hikvision and Dahua are actually normal and reasonable prices.

Repercussions: No new round of price war will be triggered

In fact, there is no price reduction phenomenon for Hikvision and Dahua’s camera products. The interviewee’s corporate leader also ruled out the possibility that Hikvision’s and Dahua's low-priced, low-end products will trigger a new round of price wars. . Nevertheless, Hikvision and Dahua's impact on the low-end market with low-priced products can not be underestimated. In response, the person-in-charge of the interviewed company stated that in view of the current situation, Hikvision and Dahua launched low-priced low-end products will not cause great impact on the camera industry.

"For SMEs, I think that it is not a bad thing for well-known brands to launch relatively low-end, low-priced products. It may even be considered that this is an affirmation and promotion for us." Huang Yaoming is very optimistic.

Is it intended to compete for the civilian market?

"These low-end products are mainly aimed at the civilian market and may not be used in some projects." Hou Gang analysis, Hikvision launch low-cost low-end new products illustrate two points: First, Hikvision and large China is concerned about the large capacity of the civilian market and wants to share the civil market cake. Second, the two industry leaders are aware of the threat posed to them by second-tier brands in recent years. They have “pressed” second-tier brands by launching low-end, low-priced products to run their markets. Play space.

Hou Gang said that Hikvision and Dahua did not and could not play the role of a DVR price war. Because the price reduction of DVR is based on the same chip and technology to lower the price of the product, it is a price reduction in profit space, and this time is not the case. Hikvision and Dahua are unlikely to trigger a price war on camera products, and in the end they will only benefit from seizing civilian market share and capacity.

In this regard, Huang Yaoming also holds the same view. He optimistically told reporters that well-known brands introduced relatively low-end low-priced products, from the side is also on many companies to promote the low-end products recognized. At the same time, it also shows that the low-end camera produced by the second and third-tier brands also has its market and value, and it can also enter the “Safe City” project. Hikvision and Dahua are interested in this field and it is an affirmation for the second and third-tier brands. It can also further promote high-end brands into the homes of ordinary people.

Look at the influence of security brands from the perspective of low-cost cameras

The introduction of low-priced products was originally a way for companies to use them in the construction and expansion of channels. It is not surprising that it is not only aimed at the security industry, but also occurs in every industry. However, why does this move of Hai Kang and Dahua set off an uproar in the entire security industry? Of course, this must be based on the brand's value and influence.

Whether it is a monitoring system, an integrated wiring system, or a building intercom system, there are several brand manufacturers that are influential in each field. These brand manufacturers have a relatively large market share in their respective fields. In the monitoring industry, Haikang and Dahua are among the top brands in China. Here, the author quotes a word from the industry: “Haikang, Dahua sneezes, and the whole industry follows the flu.” Why is there? Such a big influence?

1, brand value creates profit

In today's severe homogenization of products, companies want to highlight their products in the industry, and they only proceed from product quality, product packaging and product design. The results are not so ideal. After all, product quality requires a long-lasting battle. It does not allow users to recognize it in one day or two. In addition, any company can propose a new packaging plan based on changes in the market within a short period of time in terms of product packaging and design. , And can quickly apply to new products, so companies will be difficult to rely solely on product packaging and design completely out of homogenization.

In the face of the phenomenon of “similarity, you have me”, the market share should be lost. Where does corporate profit come from? This quoted a message: On June 8, Hikvision, for the first time, replaced ZTE (494.34 billion) with the market capitalization of 50.168 billion to climb the top of the market value of the information equipment industry. As of June 14, Hikvision's market capitalization has led ZTE's 2.05 billion. Here, perhaps we can not help but ask: ZTE's product technology content is obviously better than Hikvision, and Hikvision, as some chips are still bought from ZTE, but why Hikvision will achieve such results? It is puzzling.

In fact, apart from having a certain relationship with the decline in the profit of ZTE, the most important factor is the influence of the brand. When it comes to monitoring, people often think of Haikang and Dahua. In addition, when agents choose HaiKang and DaHua's monitoring products, they have expressed that they chose the products of these two brands. , It is not the quality of the product, but more of the brand's reputation. This shows that the brand building of Hai Kang and Dahua is very successful. Only under such a fierce market competition can Hikvision's profits still be affected and rise rapidly, thereby replacing the original position of ZTE.

Combining the above examples, it will naturally be easy for everyone to come back to the questions we raised. We must understand that the value of a brand is inextricably linked to corporate profits. Marketing channels and marketing teams are important, but influential brands can do more with less channel construction and create a considerable profit for the company.

2. The brand is an umbrella for security companies

Since the development of China's security industry for more than 30 years, it has been a long period of time before it has been able to develop rapidly. At that time, compared to many newly emerging SMEs, it was undoubtedly a huge business opportunity.

However, in this process of rapid development, when the development has reached a certain stage, the industry reshuffle still cannot be avoided. According to investigations, security companies that have closed down due to industry reshuffle are mostly unnamed SMEs. Among these SMEs, a large part is due to lack of attention to brand promotion and value creation, and their corporate and product brands are difficult to The consensus in the market for everyone is that once there is an industry reshuffle, it is inevitable that it will face closure. Those enterprises that can survive the industry reshuffle difficulties and establish a foothold in the security industry, in addition to the relatively large advantage in the capital turnover, the brand's influence can not be ignored.

3, brand value, about the development of the industry

When it comes to industry reshuffling, you must have taken the lead from Dahua in the past year, and the DVR price war that Hikvision, Hanbang and other companies subsequently joined still has a relatively deep impression. When the DVR's price cuts took off, the entire security industry was greatly affected. In addition to the collapse of a large number of enterprises, a large part of the "survivors" was "greatly injured."

The shadow of the price-reduction storm of the DVR has not completely faded from everyone's hearts. Recently, it has been rumored that the price controversy of Haikang and Dahua’s cameras has caused the panic in the entire security industry. It can thus be seen that the brand values ​​of Haikang and Dahua have not only been confined to the two companies so simple, but their actions will directly affect the situation of the entire industry and the future development trend.

Conclusion:

The launch of the national “Twelfth Five-Year Plan” has provided enormous opportunities for the security industry. At the same time, it also hides huge hidden dangers. After all, the market development is unpredictable. Enterprises need to take every step carefully and carefully before they can take one step. A child. The security market in 2013 is indeed a very attractive big cake. For security companies, it is a golden opportunity for brand value development and improvement of influence. While ensuring the quality of products and services, we must increase the brand's propaganda and build brand marketing channels through network promotion, media publicity, and other aspects. Only in this way can we help companies out of the whirlpool of industry homogeneity, enhance brand influence, and strive to achieve the air-conditioning industry. In the "Gree."