A bizarre social media exchange raises a serious question:
Hikvision is evidently excited to promote this tweet about them 'flooding the market.'
Now, in English, 'flooding the market' has a fairly negative connotation:
"An excess amount of inventory for sale causes an undesired drop in price for the product, and in extreme cases, making the products impossible to sell at any price."
"When flooding the market is done intentionally in an effort to eliminate competition, it is known as dumping."
Surely Hikvision's social media person just does not understand what the term means, but the Hikvision case is especially weird.
Hikvision generates most of its revenue from China, where they are reaping eye popping profits, with an unbelievable 28% net margins and $500 million in total 2013 profits (nearly 3x that of Avigilon's 2013 revenue).
Now Hikvision comes to North America, are selling comprable cameras to Axis at 50% less prices. Plus they have built an American style, American based sales, marketing and support organization (which is expensive).
It does raise the question - how is Hikvision selling at such incredibly lower prices while offering the same type of local service and support and being profitable at all?
Listen, it's great for integrators and end users that Hikvision 'floods' but is this really sustaintable.