Dahua Cracking Down On Online Sales

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Ethan Ace
Dec 12, 2013

A few days ago, Dahua released a statement regarding online sales, refusing support and warranty to any products sold through unauthorized channels. This essentially means anyone in North America buying Dahua-labeled cameras instead of one of their OEMs (Q-See, IC Realtime) will be unsupported.

This is especially interesting as Dahua has recently become available on major online retailers like NewEgg, making all those sales ineligble for warranty and support.

Thoughts on this? Does Dahua's low cost outweigh the lack of warranty? If you're using Dahua from an unauthorized source now, would this drive you to one of their OEMs?

KL
Keefe Lovgren
Dec 12, 2013
IPVMU Certified

Thoughts on this? Does Dahua's low cost outweigh the lack of warranty? If you're using Dahua from an unauthorized source now, would this drive you to one of their OEMs?

Ethan that is a good question... We have brought in some Dahua items to test them in our office... of course the initial draw is the price... what we quickly found however was that the low cost of the product doesn't seem to make up for the high cost of the labor associated with trying to get everything to function... we spent over three hours trying to contact the distributor we bought it from to help us with a firmware upgrade so we could use the gDMSS Lite remote viewing app... once we were able to have them help us with the firmware upgrade it was about 5 hours later that we got everything working... this was primarily due to the fact that they kept getting kicked off of their remote viewing software because they had misused the free version and refuse to pay for the license... obviously if we continued to by their product we would want to work out any firmware upgrade bugs prior to the cameras leaving the shop...

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Marty Major
Dec 13, 2013
Teledyne FLIR

"they kept getting kicked off of their remote viewing software because they had misused the free version and refuse to pay for the license..." hahahaha $10 says TeamViewer.

Yet another symptom of the cultural disconnect that occurs across continents. That kind of thing is so bush league as to be laughable for a company the size of Dahua, yet I doubt they even get that. The support dept manager probably got a reward for saving the company money on vendor licensing. Want to lay odds on the Windows versions they use being legit? :)

JG
John Grocke
Dec 12, 2013

Where are the "unauthorized" sources like NewEgg getting the Dahua products from, direct from Dahua or from some 3rd party wholesaler vendor in China?

If direct from Dahua, that stinks. If not, then they are protecting their distribution OEM's and it stinks only slightly less. If people buying Dahua branded products (not the OEM brand) from overseas online and are contacting their North American OEM's for support, the OEM has every right to turn them away but not the manufacturer. Manufacturer's generally factor in warranty support costs for their products regardless of how or where they are sold. It doesn't seem right for them to deny factory support for their product. Dahua needs to clamp down on their distributors rather than punish the end user.

Somehow outfits like Avigilion seem to sell a lot of product without resorting to online sales. Maybe Dahua should take notice.

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Marty Major
Dec 14, 2013
Teledyne FLIR

Polaroid Announces Exclusive License Agreement With PRD Security Systems

May 8th 2013

PRD Security Systems Will Manufacture And Distribute Professional CCTV Security
Cameras, Monitors Hardware And Video Management Software.

As you can see from this link ----> PolaroidUSA is the new kid on the North American block for Dahua. Maybe they pushed Dahua for that North American protection for their in-house distribution channel 'PRD Security Systems'... whomever they are.

JD
Jim Daly
Dec 16, 2013

Hi All,

Like many products it’s important to understand there is a “grey market” for security products.

Marketing 101: the price of any product is what the local market will bear (tolerate )

So let’s assume the local trade price of a Dahua DVR in the local security distributor in downtown Shenzhen China is $ X.00.

The trade price of the same (Dahua) QSee / Qvis/ ICrealtime or active and helpful IPVM member Sean at Nelly's Security with EYEsurv is $ X.00 + $ Y.00 = $ Z.00 The $ Y.00 bit is for their margin and local support and warranty. (Have you ever tried to return anything to mainland China under warranty?)

Many Chinese manufacturers supply the local Chinese market with Chinese language ONLY versions of the DVR at the lower price (what the local market will bear). But some smart Chinese guys figure they can install the multi-region firmware on the local Chinese versions and sell them online or through the “grey market”.

Now you can start to see the problems this presents, the North American Dahua rebrand companies are complaining to Dahua why can these (grey market) guys sell Dahua online at these low prices? Dahua is saying it’s not us, what can we do to stop this?

I cannot say for sure that the above is happening in Dahua’s case, but I have sourced security products from Taiwan, Korea and China for many years and their always was grey market products available for many brands. The internet and PayPal have made it easier for people to buy from these grey market guys and it does not take long now to find lower prices online.

Regards,

Jim

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Marty Major
Dec 16, 2013
Teledyne FLIR

Jim,

While all the above is true, each manufactured device carries a unique idenitifier (serial number, MAC address). If Dahua was at all interested in stopping grey market sales - instead of just posturing publicly for the benefit of their 'dealers' like lots of other manufacturers do - simple tracking of unique identifiers can identify the source of grey market devices.

JH
John Honovich
Dec 16, 2013
IPVM

Marty, this may be happening behind the scenes. I know of cases where manufacturers will buy their own products from unauthorized sources simply to track where they are getting the product from. This then allows them to confront their upstream distributors / resellers to push them to stop selling product to such outlets. This wouldn't completely eliminate such grey market sales but stop anyone unauthorized reseller from getting too big.

JH
John Honovich
Dec 16, 2013
IPVM

Jim,

Good description. I am curious how much the "Y" is in that equation (i.e., markup for local margin, support, warranty). If it was significant, I could see some trying to get around and then absorbing the hit on tech support and replacement.

That said, Dahua seems to want to make everyone an OEM. For instance, when I first spoke with them, their contact thought I wanted to be an OEM and was trying to set us up as one. Kinda funny but also ridiculous....

BG
Bob Germain
Dec 16, 2013

FWIW- Newegg has many brands listed as available including Axis, Panasonic, Sony, Bosch....so are they also "permitting" unauthorized on-line sales?

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Jon Dillabaugh
Dec 17, 2013
Pro Focus LLC

Are you sure that NewEgg is the seller of these items? Is it possible they are just the portal for an independent reseller? They are like Amazon now, in the way they have outside resellers mixed in with their own offerings.

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