How Hikvision Emerged as a Go-To Video Surveillance Supplier in North America
SSI spoke with Hikvision USA/Canada President Jeffrey He for the second part of an exclusive look inside the company.
From 2004-2014, Hikvision posted a 53% compound average growth rate.
Is the primary corporate strategy one of organic growth or is acquisitions part of the mix? What about technology partnerships as well?
HE: Mergers and acquisitions have not been Hikvision’s strategic focus since the company’s inception. Instead, we always pursued our success through offering innovative products and solutions utilizing our R&D capabilities and pursuing the right markets. However, if a good prospect would arise, we would always be interested to study our options. The several lines of credit [$3.1 billion] we recently received as well as the planned bond issue on the Irish Stock Exchange and the Hong Kong Stock Exchange could also prepare us in advance of future growth opportunities.
As for partnerships, we form third-party technology partnerships all the time with the goal of providing a total solution to our customers. This includes access control, VMS and cloud access. We openly support third parties from the NVR perspective, and have forged a lot of key partnerships when it comes to analytics and vertical market-specific solutions. Through it all, Hikvsion is committed to the ONVIF standards for integration.
Hikvision is also interested in getting into new markets outside of traditional security. The company plans to diversify itself even further in the coming years. As well, Hikvision already provides products and solutions beyond video surveillance. Today, these offerings exist outside of North America but we are constantly evaluating our regional product mix and the market may see new sets of solutions from us shortly.
RELATED: Hikvision Announces Integration With Control4 Smart Home Solutions
Does the business sell direct to end users or only through wholesale distribution? What is the channel strategy and how much does Hikvision interact with end users?
HE: Hikvision USA and Hikvision Canada sell only through authorized distributors. Our strong relationships with distributors help build strong relationships with integrators, architects and engineers. We are building a specification strategy that will help expand
our interactions with end users; because we are the original manufacturer we have the flexibility to customize certain aspects of larger projects.
Depending to what degree the customization is we can respond very quickly, either through slight modifications in the hardware or customizing the software/VMS. That is a more difficult process for someone who is not the original manufacturer. Being a complete end-to-end solution provider gives us a lot of freedom to better serve our customers.
How is the company keeping its finger on the pulse of installing U.S. security dealers and integrators?
HE: A good manufacturer is constantly seeking feedback from its customers with regard to product selection, product quality and new products needed to address application opportunities. This goes for current projects and projects on the horizon. Hikvision works closely with its integrators and the A&E community to understand what’s occurring in the industry and what trends are emerging as new technology is made available and as new problems are identified. We do this by having a large number of boots on the ground – Hikvision representatives who are working with and alongside of our integrators and distribution partners.
Our field engineers, for example, review designs and suggest where Hikvision technology can solve a problem or realize a missed opportunity. Listening to the voice of the customer is one of the critical success factors that has helped Hikvision grow its business significantly over the past several years. Additionally, with the largest number of R&D engineers in the industry, Hikvision has been able to respond swiftly to special needs as our customers present them. This not only helps us to keep our finger on the pulse of our dealers, but to render solutions in real-time.
How are you helping those dealers and integrators be more successful?
HE: We have built a good dealer partner program that really fosters a relationship between Hikvision, our distributors and the dealers. Our team of knowledgeable sales managers and field application engineers help with presentations and demos to end users who want to dig deep into a technology offering or solution set.
With a growing technical support team, we work to respond to installers more quickly and reduce installation time. And there is no doubt that the economic value represented by Hikvision is helping both end users and dealers realize more complete video surveillance solutions while staying within the prescribed budget.
We are also building our Learning and Development department, creating robust training and certification programs that we plan to deploy in the field in 2016.
Photo Gallery: SSI Visited Hikvision’s Global Headquarters
What are some specific features that make the products easy to install?
HE: Sometimes it’s the simple things like including the needed security fastener tool with the camera or a mounting template to help position mounting hardware correctly the first time. Other examples include providing adequate cable length for network and other connections without being too long, or including captive fasteners where needed to eliminate dropping of parts that can be damaged from a fall.
Another feature would be an analog video port for quick camera angle placement and verification. Also, it’s our true WDR, which is available in both our Value Plus Series and Smart Series to provide clear images in challenging lighting conditions, and motorized zoom/focus lenses that make remote adjustments easy. Additionally, we have a common GUI from our smaller four-channel DVR up through our largest 256-channel Super NVR, which allows an installer to learn one system that scales.
MORE: What video surveillance technologies is Hikvision most excited about and why?
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
About the Author
Scott Goldfine
Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].
Related Content
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.
A FREE subscription to the top resource for security and integration industry will prove to be invaluable.
