Hangzhou Haikang Digital Technology Co., Ltd. (hereinafter referred to as Haikang)'s 4-way DVR price has fallen from less than 700 yuan to less than 300 yuan; the biggest victims of this price war are not DVR second and third tier brand companies, but are The most low-end brand DVR manufacturers and shark cargo suppliers.

In May, the DVR market heard the gunfire that started the price war.

Hangzhou Haikang Digital Technology Co., Ltd. (hereinafter referred to as Haikang) has reduced the price of 4-way DVR from less than 700 yuan to less than 300 yuan; the price of similar DVRs of Zhejiang Dahua Technology Co., Ltd. (hereinafter abbreviated as: Dahua) Also decreased by 40%...

It is understood that in this price war, the long-term occupation of DVR big-and-middle players in the high-end monitoring storage market aims at the “low-end market,” and the price has also dropped to “knock-off prices”. The attack of big crocodile, low-end market product suppliers how to deal with?

In survey interviews, security companies suffering from price warfare have said that this is tantamount to using blood and tears to buy a well-known truth: the price war, a war without a winner.

Faced with this price war, DVR second- and third-tier brand companies appear to be calm and calm. They are facing the adverse effects of price warfare on their own development and are brave enough to face up to a vast new world to open up their own new markets. Zhongshan Libao Technology Co., Ltd. (hereinafter referred to as: Zhongshan Libao) and Shanghai Weiqian Video Technology Co., Ltd. (hereinafter referred to as: Weiqian Digital) and other companies have chosen to go their own ways and evade the leading companies like Haikang and Dahua. Rush to open up a new world in the areas that they have identified.

Phenomenon

"Daqi" snatches low-end market to trigger DVR price war

According to statistics, several major DVR giants in Haikang, Dahua and Hanbang have occupied more than 70% of this area. However, the sudden price war at the beginning of May once again broke the tranquility of the DVR market.

The industry believes that this DVR price war is quite meaningful in the scramble competition. Leading companies such as Haikang and Dahua intend to gain market share in low-end products and expand their market territory once again. The Spring and Autumn and Warring States struggled for hegemony and was tagged by the historian as the "unrighteous battle." The DVR price war will be classified as "a war without winners" regardless of the final result.

fuse

Dahua launched the first shot of the price war?

DVR price war who put the first shot? Regarding this, as of the closing date of the report, neither Haikang nor Dahua asked for a clear response to the reporter’s interview. However, according to sources in the industry, the DVR price war was first started by Dahua.

“Dahua started the DVR price war purely for its own benefit.” According to industry insiders, at the beginning of May this year, Dahua significantly reduced the CIF format 4-way DVR price by 40%. Subsequently, Haikang in the same place in Hangzhou also joined the "battle." Immediately afterwards, Hanbang Hi-Tech Co., Ltd. in Beijing also quickly followed suit and lowered the price. Some Guangdong DVR manufacturers have also been forced to lower their prices. A "Derby War" among Hangzhou DVR companies has evolved into a nationwide DVR price war.

Recently, the reporter called Dahua and Haikang several times and tried to learn more about the DVR price war originating in Hangzhou through an interview. However, as of the end of the press release, interview appointment telephones and the outlines of interviews sent out have not been answered. Dahua and Haikang remain "very vigilant" on whether or not to announce this price war to the media.

Dahua's attitude towards the media is very secretive. The reporter successively called the relevant person in charge of the company, the front desk and the external relations department for more than ten times, and all failed to return. First of all, the reporter called Jianghua, the product manager of Dahua, and Jiang used to indicate that he was not responsible for the storage line product. Under his referral, the reporter then contacted the manager responsible for the company's storage products. He also introduced the reporter to Zhang Quan, the director of storage products. Zhang Quan said that he could introduce the relevant circumstances, but he must obtain permission from the company’s foreign relations department. Afterwards, the reporter repeatedly called the company's front desk to transfer to the External Relations Department, but the person in charge of the external relations department just left a phone call with the reporter and said that whether or not the company accepts an interview with the reporter will give a reply. However, as of press time, the reporter has not received the other party. Any news.

Liu Baolin, responsible person for Haikang’s external propaganda work, learned that after reporters went to the power station, they asked reporters to send out interview outlines. The reporter contacted Liu Baolin after completing the outline and hoped that the other party would reply in a timely manner. Before the end of the day, Liu Baolin called the reporter that the interview outline was not received and asked for reissuance. The reporter once again sent an interview outline to the other party, but as of press time, the reporter did not receive a reply from Liu Baolin.

status quo

Haikang 4 Road DVR price bottom

This round of DVRs set off by Hai Kang and Dahua reduced prices quite forcefully. According to industry sources, the prices of DVRs by Haikang are almost equal to those of unnamed products and even the prices of cottage products.

Yang Yang, director of Weiqian Digital Market, paid close attention to the frenzy of price reductions of Dahua and Haikang DVRs. According to reports, the current video surveillance storage market consists of two parts, accounting for the market-leading traditional DVR (including CIF program and D1 program) and gradually known and accepted by the market high-definition digital hard disk recorders NVR and HVR. Dahua has set off a major battle for DVR price wars in the CIF program product area.

According to reports, the DVR price war is mainly concentrated on the price drop of the 4-way DVR. Haikang's price of this type of product dropped from around 700 yuan before the price reduction to around 280 yuan. In addition, the prices of 8-channel and 16-channel DVRs also dropped sharply. The current prices were around 600 and 800 respectively, and the prices dropped by 500-600 yuan. Yang Yang revealed that the price has been approaching similar products and cottage products.

Kunming Anying Technology Co., Ltd. (hereinafter abbreviated as Anying Technology) is a Yunnan agent of Haikang. The company currently has a large number of Haikang embedded DVRs in stock. In order to find a market for this batch of stocks, Liu Lin, general manager of the company, is busy doing network marketing. The sales information released by the company shows that the price of the Haikang 7804H-SE (4-channel video-audio-free) DVR is only 390 yuan, the price of the 7808H-SE (8-channel video without audio) is 750 yuan, and the 7816H-SE (16-channel video has no audio) Only sell 1150 yuan. The price of the corresponding sales of the company's Junming-based embedded DVR is higher by 200-300 yuan.

"Haikang 7804H-SE this machine is less 485 support and alarm support, only with the basic functions of on-site, video and playback." Liu Lin said that the price of Haikang DVR are in some areas there is a short board, with activities Price promotion is for clearance, with a certain amount of forced meaning.

Decryption

How DVR prices come down

Haikang and Dahua have become the first and second largest companies in the domestic DVR field. Why are prices drastically reduced? What are the "pushing hands" behind the big price cuts?

It is understood that the current domestic DVR manufacturers use the most extensive programs are the United States TI (Texas Instruments) program, Taiwan Zhiyuan program and Huawei Hass program. According to Wang Yixue, Marketing Director of Shenzhen Liante Microcomputer Information Technology Development Co., Ltd. (hereafter referred to as Lian Micro), the Texas Instruments TI program is the most expensive, followed by Huawei Haisi, and Taiwan Zhiyuan. For many DVR manufacturers, the Huawei Hass program is inexpensive and cost-effective.

"Using the TI program in the United States will require a one-year product cycle, and the product cycle for switching to Huawei's Hass solution will be shortened to 2-3 months." Yang Yang gave reporters a vivid image. He said that TI's plan is like raw materials for cooking. It needs to be washed, cut, fried, and seasoned before it can be made into a dish. The Huawei Hass program is a semi-finished dish that can be eaten by simply heating in a microwave oven.

According to reports, the Haikang DVR price reduction has a direct relationship with the introduction of Huawei's Hass program. Yang Yang said that Haikang has been working closely with TI and TI is Haikang's largest provider of solutions. "Now that Haikang is also doing Huawei's Hass program, the cost has dropped, and the market price has also fallen." Yang Yang said that although Haikang did not have much difference in DVR products made with Huawei Hass, Haikang has a large brand awareness. With good channel foundation, large production and sales scale, and strong raw material price negotiation ability, after the DVR is reduced to 300 yuan, other SMEs may not have any money to make, but Haikang can also earn.

"These two companies are listed companies and they all have the capital to play this game." Wang Yixue said, "Their product line is very long and they can take profits from other products to make up for this part of the loss." But looking at Wang Yixue This time, Haikang and Dahua took the lead in this DVR price war. The thick and rich are apparent reasons, and there are deeper reasons behind it.

“In the past there was no 10 million yuan, no one would dare to do DVR. Now, as long as there are hundreds of thousands of yuan, you can get involved in this area.” Sun Qiang, sales director of Zhongshan Libao, said that the reasons leading to the immediate price of DVR and program providers and The program is increasingly flooded with direct links. "More programs, the threshold to enter the DVR will come down, small workshops to buy a public board and shell can be assembled DVR." Sun square said.

analysis

Price competition behind market share

Different from the previous price wars, the leader in this price war is not a small company that sells cottage goods to make hot money, but a listed company that is not bad for money.

In 2010, there was a clear-cut standpoint in the field of video surveillance storage devices, saying that the NVR will replace DVRs. Although some analytical articles are very radical in wording, some are slightly conservative, and some take the middle ground, the industry has basically accepted this view. The DVRs, price wars, and listed companies in the dead end, the three eye-catching elements made the DVR return to normal in 2011 and again caused widespread concern in the industry.

Haikang and Dahua are the leading DVR companies in China. Why did they take the lead in the price war? There are many opinions in the industry. There are sayings that “the wolf is coming”, there are clearance sale opinions, there are also monopoly markets, and so on. However, what the reporter has heard most is the most forward-looking statement in the market. “This move is to seize market share and grab opportunities for the next step.”

“I personally think that they are seizing the market and pave the way for HD and network camera sales.” Wang Yixue analyzed that current network video surveillance products cannot be compatible and interoperable with each other. Whoever takes possession of the market will have the initiative and the right to speak in terms of its own standards.

Shenzhen Zhenbo Grain Technology Co., Ltd. (hereinafter referred to as: wave grain shares) East China Region Market Director Wu Zhen also holds similar views. In his opinion, despite the current monitoring market, analog products are still in the mainstream, but it is a dead end. At present, it is the transition period from the trend of HD to the actual market. To seize market share is to seize the commanding height of the next round of HD.

“Haikang and Dahua have not yet lost their price wars. The price war smoke bomb is presented to us in front of us as a battle for market share.” Wu Zhen said that whether it is Haikang or Dahua, first put the market first. With the share occupied, it will take the lead in the competition of high-definition products. Because of the brand effect of these two companies, the project of the two companies' simulation products is likely to be a repeat customer when the product is replaced.

It is worth mentioning that the ratio of traditional analog products and high-definition products in the surveillance market is currently 9:1. .

influences

Low-end goods Shanzhai cargo "Yalishanda"

The DVR price war started by Dahua was less than a month ago, and it did not cause widespread concern in the entire security industry. In the interview, many person in charge of video surveillance front-end and transmission end product manufacturing enterprises expressed no knowledge. However, in the monitoring and storage industry, this price war is unknown.

Liu Lin told reporters that he learned from the friends in the circle that the DVR price war was triggered by Dahua, but the specific situation is not very clear. "That's natural, ah, how can there be no." Talking about the impact of this price war on his own business, he introduced that not only did he directly sell the Haikang DVR directly affected, but also distributed Junming as an embedded DVR, Ping Fu High-quality high-definition D1 has also been affected to varying degrees, prices have declined.

The biggest victim of this price war is not the DVR second- and third-tier brand companies, but the lowest-end non-brand DVR manufacturers and shanzhai suppliers. The pressure on low-end product manufacturers and shanzhai cargo suppliers can be described by the popular online language “Ya Li Shan Da”.

Yang Yang introduced that the DVR market has formed two camps with distinct boundaries - high-end brand camps including Haikang, Dahua, Hanbang, and Weiqian Digital, and camps formed by low-end and mid-tier products companies in Shenzhen. Most DVR companies in Shenzhen are small businesses and are under the most pressure.

"This price war has pulled the price of DVR to the cost price. Small business output and sales volume will not go up, product backlog will be aggravated, and the cash flow will be awkward. It will face bankruptcy," Yang Yang analyzed, leading companies such as Haikang and Dahua. The price of DVR is similar to that of low-end products, which has caused many channel operators to wait and see. It will reduce the products of low-end and mid-tier companies and cause the funds of these small enterprises to be quickly repatriated.

Sun Shuang also said that the second-line brand companies in the price war have been forced into the market. They can maintain market share by sacrificing the profits of other products of the company's product lines. Small companies and small workshops that make a living in the low-end market will directly go bankrupt.

ending

Lowered prices also lost dignity

When this round of DVR price war will end, it is temporarily unpredictable. However, Haikang, Dahua and Hanbang High-tech first-line brand companies will get their own desired "trophy" - the market share of low-end products is no suspense.

However, the industry does not seem to be ready to give flowers and applause to these "winners" of the price war. Yang Yang was shocked by the "price war" launched by the industry leader. “Haikang and Dahua launched a price war to achieve their own goals and undermined the interests of the industry.” He said that leading players in the industry should have been respected by the entire industry. This leading price war, such as Haikang and Dahua, has gained Market share will inevitably gain some objections.

Wu Zhen also said that DVR leading companies such as Hai Kang and Dahua Co., Ltd. used price warfare as a means to attempt to monopolize the market, causing industry indignation.

More industry sources said that Daewoo launched a price war in order to suppress its relatively small rivals in the same city. It was not only “big bullying, bullying, bullying” but also lacked the overall awareness of the industry. Haikang, as the "leader" in the DVR field, not only does not "dissuade it," but also participates in the promotion of this price war in Hangzhou, which is unbelievable.

In "Baidu knows", some people commented on this price war: "Dahua and Haikang are too bad to be able to lower prices. Why do they want to lower quality? Too little regard for their own brand image."

The implication is that in the price war, not only the price of the product, but also the dignity of the company.

Influence articles

Avoid falling into the battle of consumption Second-tier companies take the road of differentiation to open up the market

In the face of a price war triggered by the low-end market, mid- to high-end product companies will respond passively to price cuts. Faced with the price war caused by leading enterprises, how should the second and third line enterprises face?

It is understood that the second-line brand companies currently involved in this price war are not willing to be in a passive position and are being dragged down by the price war; instead, they have changed their tactics, moved away from the "war", adopted different development paths and opened up their own markets.

The DVR market cake will eventually be shared

"Price war, there is no permanent winner." Liu Lin said that in this price war, Haikang and Dahua and other leading companies can not all second and third line companies killed.

Liu Lin said that the price war has made the price of the DVR transparent, and the interests of the engineering companies have been seriously damaged. "Engineers have no profits, and who will pay for the products of famous companies such as Haikang and Dahua?" He believes that price war will only grab market share for leading companies in a few short months. In the long run, the market will still return to the second and third tier companies. Because the price war has fallen off the profits of all parties involved in fighting, these models will have less investment in R&D and after-sales services. This is destined for leading companies to occupy the end market will not last long.

In addition, in his view, the low-end, mid-end, and high-end product markets are long-term coexistence markets, and it is impossible for Haikang, Dahua, and Hanbang to complete the market. DVR experienced this price war. After the market was reshuffled, the major share of the market was still several major companies such as Haikang and Dahua. The only low-end market companies and cottages that were washed out were “mixed food”. factory. The second and third tier companies only temporarily lose their "positions," and the market will eventually help them regain their lost ground.

Yang Yang also said that Haikang took a "big and full" development approach to "great security." At present, the total value of China's security industry accounts for six thousandths of the national GDP, and this proportion may increase to one percentage point in the next few years. “This big cake cannot be eaten by one or several companies. In the end, we still want to share it with everyone.” He said that companies with high, medium, and low-end markets cannot compete at the same time in different markets. The companies will also maintain their normal operations in their respective markets.

The price war gave birth to new opportunities in the civil market

This price war is not just "injury." According to Liu Lin, the price reduction of DVR may lead to price cuts for front-end products. Because the price reduction will inevitably increase the sales volume of DVR, it will create the possibility of increasing the demand for front-end cameras.

“In the past, mobile phones sold 1,000 yuan, and fewer people used them. Now, mobile phones sell a few hundred yuan, not everyone has it?” Liu Lin told reporters that before the monitoring is a public facility, is for the rich people It is now used by ordinary people. Now the price of the DVR has fallen to what ordinary users can accept. "People who wanted to do it but couldn't do it now are starting to do it."

Liu Lin said that from this perspective, the amount of back-end storage device DVR has increased, and the market demand for front-end cameras has also increased. The increase in front-end camera sales can also bring about a reasonable decline in the price of the camera, and the cost of a monitoring system will also drop to a more reasonable price.

“Now general hotels, supermarkets, and shops all try to install monitoring systems. Plus, the back-end DVR has brought prices down to near-cost prices, and the front-end camera will usher in the civilian market.” Liu Lin believes that the price war on the back-end DVR Will cause front-end camera products blowout in the civilian market.

Liu Lin also plans to increase investment in the Shenzhen plant, and then invest 1 million yuan to do a good job in front-end analog camera products and markets. He believes that the price reduction of the back-end analog DVR will drive the sales of front-end analog cameras. At the same time, the ratio of 9:1 in market share of analog surveillance products and digital products also gave him great confidence.

Rely on new products to seize new markets

As we all know, security surveillance storage products are not only DVR, DVR products involved in price wars are also limited to CIF format 4-channel hard disk recorders.

Yang Yang said that the DVR price war was only to reshuffle the CIF format DVR product market that will soon complete its historic mission. Weigao Digital does not participate in this price war, but actively explores the market for D1 digital hard disk recorders. “D1 has entered the Red Sea. In the first round of market competition, we hit a price of 1999 yuan and grabbed the opportunity for development.” Yang Yang said, Wei Gan digital “makes D1 fly” has caused strong reaction in the industry, and the products are in demand. Sales scene.

At the same time, Yang Yang said that in monitoring storage products, DVRs have been replaced by NVRs and HVRs, but there is still great potential for D1 in this area. Because the NVR and HVR cannot immediately replace the DVR, the front-end camera market for NVR used for IP surveillance has not really been implemented yet, and the ratio of network cameras and analog cameras remains at 1:9. Businesses relying on NVRs alone cannot prop up a company's development. DVRs seem to have reached the end of history, but the market is still very large.

The Weiqian digital strategy has avoided the confrontation with leading companies such as Haikang and Dahua, and seized its own development opportunities in the D1 field. There are far more than one or two companies that stick to the route of product differentiation to seize new markets and avoid falling into price wars.

Sun also revealed that in this price war, the company paid the price of sacrificing the company’s profits in order to maintain its market share. But this price war also forced Zhongshan Libao to make differentiated products and seize the new hard disk video recorder market.

It is understood that at present, Zhongshan Libao has developed two differentiated products. One is a combination of DVR and TV, and the other is a combination of alarm and DVR. The previous product not only stores monitoring images, but also catalogs user favorite TV sections for users to use when watching. Afterwards, the product can be inserted into the mobile phone card. Once a thieves cuts the video monitoring line or DVR line, the DVR will simultaneously Send alarm signals (video and audio) like 5 preset phone numbers. In addition, the company is also developing digital wireless DVRs that enable wireless transmission of DVRs and cameras.