Security market stirs second and third-line low-end product sales see rising

In 2007, China surpassed Japan to become the second largest security market in the world.

In 2011, the headquarters of the Global Security Industry Alliance officially relocated from Washington to Shenzhen, opening a new era in China's security industry.

In 2012, foreign security giants headed by Honeywell and Axis began to enter the second and third tier cities in China. The enthusiasm of security companies took advantage of the sparks and quickly ignited the inland areas on the basis of the coast.

Peaceful city in full swing

Since 2004, the Ministry of Public Security has launched a series of science and technology strong police demonstration cities and safe city construction activities. The construction of safe cities is related to the overall social stability. At present, the construction of safe cities in first-tier cities has basically been completed, and the construction of safe cities is at that time. The rise of economic strength in second- and third-tier cities, the increase in residents’ spending power, and the general increase in safety awareness have greatly increased the demand for safety and security in second- and third-tier cities, coupled with the emphasis placed on local public safety by local governments and public security agencies. The demand for security in second- and third-tier cities has risen unprecedentedly.

With the changes and development of the market, the second- and third-tier markets have changed from the unpleasant taste of food in the eyes of the past to the “chicken truffles” that have become a piece of cake.

The economic development has made people more aware of their own security, and the security needs of personal security, home security, community security, and urban public security are on the rise, so that the social and public security of second- and third-tier cities also continues to mature. According to Li Guanghu, general manager of ZTE's Liwei Channel, “The security system requires that the local environment has a suitable network environment, and the quality of personnel must also be matched. The security requirements of the second and third-tier markets are due to the status quo of technical status and management concepts, plus The labor cost is lower than that of the first-tier cities, and it is supplemented by “human defense”-based “technical defense” for a period of time, but with the development and improvement of technology, the concept of human management has also begun to change, and the actual market demand has started. Eruption, security companies concerned about the second and third-tier markets is also reasonable."

On the other hand, China’s inland cities are less affected by the financial crisis and the economy is rapidly picking up. A series of national policies have boosted the development of second- and third-tier cities, looming economic strength, and urbanization of third- and fourth-tier cities is being carried out at high speed. These, among others, are prompting the second and third-tier markets to pursue their first-tier cities’ spending power in the public safety field. The great potential of the second and third tier markets is fully released.

Low-end products first

In the second and third tier cities, the security industry has gradually penetrated into the cities, counties (including county-level cities) and even counties and townships. “The security industry is “sinking” and security business opportunities have begun to sink from large and medium-sized cities to third-tier cities and even to township levels.” said Wu Chunshan, sales director of South China, Zhejiang Dahua Technology Co., Ltd. After several batches of pilot cities, as well as the clues provided by surveillance cameras in various cases, as the most common security equipment, the camera has gradually penetrated into the daily life of citizens, and the people’s security awareness has increased, and families and small shops chain Camera monitoring installed. The number of single-unit installation points for merchant shops is small, and four cameras can be implemented with NVR. However, the base number is very large and the overall amount is considerable.

Second- and third-tier cities are very sensitive to prices, because the economic income is generally not high, and low-end products win here. "To do a good job in this market, high quality and low price, as well as simplicity and ease of use are the magic weapons," said Wang Zhengbin, vice president of China and Victoria Century. Due to the large total volume, medium and low-end products are extremely active here, and the robust security market in second and third-tier cities has attracted the attention of first-tier equipment manufacturers. It is understood that after the "price cut storm", the DVR dropped from the first four thousand yuan to several hundred dollars, the most common four-channel hard disk recorders currently market prices ranging from 400 to 600 yuan. For companies and shops, such prices are completely acceptable. The price cuts of well-known manufacturers also put pressure on low-end and mid-range products and squeezed the industry. However, it is cheap and easy to use, and the market will continue to increase capacity, and the market will be more broad.

Therefore, while security companies are paying attention to large and medium-sized cities, they should also attach sufficient importance to the county-level peacebuilding market. Although a county (or county-level city) is relatively small and medium-sized cities, the scale of investment is not large, and the amount of single points is small. However, countless small cities, and even countless counties and towns and rural areas add up, the business opportunities are no less than large and medium-sized cities.