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The security industry and security market will transition from past quantitative growth to qualitative change, orderly 

 

competition, and value debate.

 

For a long time, I have been surprised by the domestic security market. The market is growing rapidly, accompanied by 

 

intense competition, but no one has been eliminated due to the competition. This can only be explained in one way, that 

 

is, market growth far exceeds competitive pressure, allowing everyone to receive a share of nutrients and continue to 

 

survive and grow.

 

However, this balance has gradually been altered by the sustained growth of some manufacturers. The rapid growth of 

 

Hikvision and Dahua, coupled with their continuously expanding market influence, stronger product competitiveness, and 

 

more solid corporate strength, have all had a squeezing effect on other companies and even put pressure on industry 

 

manufacturers. As a result, the performance and profit growth of the two companies far exceeded the market holding and 

 

industry average growth. The distance between the two companies and other companies is getting farther and farther. 

 

Based on the development of the domestic security industry, this year's Beijing Security Exhibition has discovered many 

 

positive phenomena that are worth sharing with everyone.

 

The gap between domestic and foreign manufacturers has significantly narrowed.

 

The gap between domestic and foreign brands in terms of products has almost narrowed, and the advantages of foreign 

 

brands can be reflected in broader technological integration and better user experience on a single product. But foreign 

 

businesses that do not possess the above two advantages may face fierce competition.

 

A small and beautiful company has emerged with its positioning.

 

In the early stages, security companies were accustomed to following the trend, and as long as a successful model 

 

emerged, almost all companies followed suit comprehensively. Nowadays, leading enterprises have emerged and 

 

competition has become more intense. 

 

Enterprises must calmly consider their expertise and advantages. More and more enterprises have a specialized and 

 

refined understanding in order to survive well and for a long time, making products more refined, technology more 

 

profound, and services more detailed. Competition is no longer disorderly, and the market will enter into professional 

 

competition.

 

The product details have been improved.

 

Compared to the past where specifications were the main focus, this year's Beijing Security Exhibition pays more 

 

attention to operational details, considers the texture of the appearance more delicately, and even incorporates richer 

 

functions for application details. For example, a vehicle identification manufacturer in Beijing can not only identify colors, 

 

but also identify which brand and model of car, as well as license plate recognition. 

 

In the past, almost everyone was a standard product, but now we are moving towards differentiation and creating 

 

differences from details. This will shift the market from price competition to value competition.

 

Industry applications are further deepened and refined.

 

In the past few years, the focus of exhibitions has almost always been on industrialization and solutions. Enterprises place 

 

their demands on industrialization to showcase their expertise, technology, and services. Believing that it is the result of 

 

competition and the improvement of customer professionalism, many companies at the 2012 Beijing Security Exhibition 

 

no longer only talked about industrialization, but also emphasized the need to present customer needs more broadly and 

 

deeply in their own industries. Security equipment no longer only provides protection, but also integrates with customers' 

 

business to enhance business efficiency. The benefit to customers is higher investment efficiency, while the benefit to 

 

manufacturers is increased value and ensured competitive advantage.  

 

User interface turned into graphics. 

 

The rapid entry of security into IP and the increasing size and complexity of the system make it easier for users to control 

 

the entire system, which has become a bottleneck for product promotion. Our Guangzhou Jiu'an has recently developed a 

 

video management software that allows intuitive operation of IPCamera or playback of required video content through a 

 

mouse. In addition, a direct connected NVR has been launched, which allows users to monitor in real-time without setting 

 

up an IP address and directly connect the surveillance camera and NVR via Ethernet cable. A good user interface can 

 

enhance user experience, simplify operation methods, make complex systems more easily accepted by the market, and 

 

thus enable the security market to reflect higher value.

 

The necessity for manufacturers to communicate directly with users has been heightened.

 

The system is becoming increasingly complex, and it is becoming increasingly difficult for distributors to fully 

 

communicate with users, forcing manufacturers to go to the front line and communicate with users. In addition to fierce 

 

competition in the market, manufacturers must firmly establish themselves on the customer side, and the front line has 

 

been pulled to the forefront, which also means that marketing costs must continue to rise. 

 

Many companies with excellent physical fitness, after undergoing physical optimization in the past two to three years 

 

or completing the preparation of their new positioning, will make further strides in 2013. As these physically strong 

 

enterprises continue to advance, they will inevitably squeeze other enterprises again. It seems that competition in 2013 

 

will be more formal, but also more intense.

 

Operators are becoming increasingly important.

 

The larger scale applications, large-scale networking applications, and national level smart cities after IP transformation 

 

will push the role of operators to the peak. 

 

How to develop new competitive relationships with operators will test the determination and wisdom of security 

 

enterprises.

 

Attention should be paid to the development of NVR for a single product.

 

The rapid growth of IPC in the past two years, coupled with the launch of more cost-effective IPC by multiple 

 

manufacturers, will lead to more Shenzhen companies launching low-cost IPC in 2013, which will drive up the 

 

demand for NVR. At the same time, the continuous decline in NVR prices will quickly drive the growth of NVRs, and 2013 

 

may be named the year of NVR. It seems that the IP market will trigger another round of turbulence.

 

Each of the above observations points in the same direction, towards a "qualitative change" direction that has been called 

 

for for a long time but with a general echo. Unexpectedly, the invisible hand behind the market has silently driven the 

 

phenomenon we have been hoping for - 'qualitative change'. The security industry and security market will transition from 

 

past quantitative growth to qualitative change, orderly competition, and value debate.