Security Industry's Global Market Analysis in the First Half of the Year

With the arrival of August, the semi-annual report of various enterprises gradually announced in the first half of the year. From the half-year report of listed companies in security companies, the reasons for the increase in the performance of many companies mentioned in addition to the steady increase in operating income in the domestic market include overseas markets. Great progress has been made in opening up.

Overseas markets achieved sales revenue of 1.616 billion yuan, an increase of 107.38% year-on-year. It is understood that the growth of Dali’s performance has also benefited from the development of overseas markets. According to reports, the overseas market of Dali Technology is well developed and is expected to break the monopoly of the United States and France: the export of 1H14 thermal imaging camera has increased by 122% year-on-year, and its share in revenue has increased to 21% (vs. 15% in 2013).

For most small and medium-sized security companies, the domestic market has been gradually digested by the industry's leading companies. No matter whether it is product price, brand influence or technical strength, it has no advantage at all. This has led to the gradual elimination of small and medium-sized security enterprises based on the domestic market. The surviving SMEs have also experienced the chill of the domestic market. The small and medium-sized security enterprises mainly based on overseas markets are relatively much less affected by the suppression and exclusion of leading domestic enterprises. On the contrary, with the gradual recovery of overseas economies, these enterprises committed to the development of overseas markets have ushered in a "warm spring".

An intuitive feeling is that SMEs mainly engaged in the domestic market are complaining and repeatedly worrying about whether they can continue; while enterprises that mainly focus on overseas markets and taking into account the domestic market, said that “the pressure on the domestic market this year is indeed very great. There are several large overseas orders that can be sustained."

Here we look specifically at the status of the overseas security market this year:

North American security - high demand and fierce competition. Relevant data show that at present, North America is the world's largest security market, of which the United States accounts for about 90%, Canada, 8%, Mexico, 2%. North American security market mainly presents the following characteristics: large demand, fierce price competition; many manufacturers; mature market, security companies are competing to compete.

In the North American market, the more mature development is the US security market. Most American security companies appear as manufacturers, adopting a transnational business model, and many companies have established extensive strategic partnerships with their international counterparts. About 80% of products require outsourcing. In the North American market, Korean products and products from Taiwan appear from time to time.

South American market - products mainly rely on imports. Brazil, the largest country in South America's security market, holds the majority share of the South American market. The characteristics of its security market development are: stable growth and fierce price competition; South America has fewer security manufacturers, and in the past mainly relied on imports from the United States.

In recent years, security companies in various countries have gathered in Brazil, especially South Korean businessmen, SAMSUNG, LG, and some not-so-respected Korean brands are everywhere. The fierce competition is no less than North American market, especially price competition. South American security market also has a feature: the emphasis on product prices is higher than the product quality itself. Unlike the United Kingdom and the United States value product quality, South American security users most value the price.

European market - demand stability focuses on product quality. Western Europe's security market, represented by Germany, the United Kingdom, and France, accounts for 36% of the global security market. The European security market mainly has the following characteristics: stable demand, focusing on product quality; diversification of competition, significant differences between the high and low end of the product, and different distribution channels. The European market is dominated by a single market. Countries use their own markets as the center, and there are almost no chain-operated companies. The market has a strong ability to accept new products and has a variety of products, focusing on the cost-effectiveness of the products.

Asian market - strong product tolerance. With the rapid development of the security industry in the Asian market, people’s security awareness has gradually increased. The characteristics of the Asian market boil down to: 1. Stable growth, significant differences in quality; 2. Advocacy of brand names, US-Japanese brand leadership; 3. Market is small, distribution system is incomplete. The products on the Asian market are quite tolerant and include products of high, medium and low grades. The advocacy of brand names has become the mainstream of the market. At present, the main brands are the United States and Japan. Among them, it is worth mentioning that Japan is the most demanding market for product quality in the world; Hong Kong and Macau are also representatives of the Asian market, showing a clear demand for security products and high product quality requirements. Compared with the Americas and European markets, the Asian market is still in a stage of growth and needs to be further improved in terms of production, distribution and market systems.

Middle East Market - We hope to develop commodity trade with China. In recent years, with the change of the entire Middle East market environment and the emphasis on diversified economic development, the situation has become more turbulent and the nation’s security protection has been placed in an extremely important position. The demand for security products has shown a linear upward trend. The Middle East market has long been monopolized by companies in the United States, Japan, Germany, Britain, Spain, and other countries. After the "9.11" incident and the Iraq war, many countries in the Middle East have drawn back large amounts of money from European and American markets to find new investment markets and determine new investment directions. , And more hope to develop commodity trade with China.