Hikvision Partners, Ready For Your All Expense Paid Trip To China?

JH
John Honovich
Mar 21, 2017
IPVM

You don't need to be a member of paid-off trade press, increasing number of Hikvision dealers are getting tapped.

JH
John Honovich
Mar 21, 2017
IPVM

Here is a European dealer showing off his trip:

Such trips are being held across the world including both in Europe and North America.

Trips average ~1 week, considering flight time each way of 18-24 hours is needed to get to Hanghzhou.

Total expenses are paid by Hikvision and are clearly $5,000+ considering the airfare, hotels, wining and dining, organizing events, etc.

Also, advertising contracts (for media) or extra discounts (for dealers) are commonplace.

It's quite an investment and certainly not the type of move that a 'cheap' or a 'low cost' provider could make.

This helps build powerful personal bonds with the partners and certainly make many stronger advocates after the trip.

What do you think? Good idea?

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UI
Undisclosed Integrator #2
Mar 30, 2017

I think they're doing what everyone else does.  I'm not quite sure why it seems to be a big deal... sure, an all expense trip to China (or any other country) why would you turn it down.  Wasn't Axis doing the cruise thing?  My thoughts are that sure some integrator will be loyal, others will take it for what they can.  I'm not sure why Hikvision would go to this extreme considering their pricing is dirt cheap to begin with for a reasonably good product.  Personally I don't use their products but if the product line I used came up with the same thing, I'd be one happy camper.  Just my two cents.

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JH
John Honovich
Mar 30, 2017
IPVM

I'm not quite sure why it seems to be a big deal... sure, an all expense trip to China (or any other country) why would you turn it down. Wasn't Axis doing the cruise thing?

I find it interesting because if you contrast it to Axis who does dealer events, (1) Axis pricing / gross margin dollars per product sold is way higher than Hikvision's so it's easier to 'afford' such an event and (2) Axis et al. events are relatively 'local' so the short trip (3 hours vs ~18 for China) and modest plane cost makes for a less expensive event.

UI
Undisclosed Integrator #2
Mar 31, 2017

Who sells more worldwide?  Axis or Hikvision? 

JH
John Honovich
Mar 31, 2017
IPVM

Who sells more worldwide? Axis or Hikvision?

Who sells more worldwide - Wal-Mart or Nordstrom?

The point I believe you are trying to make it that Hikvision sells more total than Axis. However, just like Wal-Mart sells more than any retailer, my point is that sales and marketing expense is heavily local and individualized and that companies that sell with greater margin dollars, like Axis or Nordstrom, can better cover those costs.

For example, when Axis or Hikvision invite a dealer on a free trip or to a paid party or go to their office to train them, the key factor is how many margin dollars does that specific dealer deliver, not how much the company's overall sales are.

Axis definitely gets far more profit dollars per dealer than Hikvision because the average Axis dealer is much larger and selling much more expensive cameras. That makes it easier for Axis to cover those individualized sales and marketing costs.

I understand why smaller dealers love how much personal attention Hikvision spends on them but that model is not sustainable because its so expensive and Hikvision sells products at such low costs. For example, ergo why Hikvision is transitioning its front field sales people to people just out of college.

Avatar
keith maxwell
Mar 22, 2017
Northeast Remote Surveillance and alarm, LLC

Why would any dealer turn it down? China is dead last on my bucket list of places to visit. With a package like that who could say no? Even if it was just to see who and what you were selling against.

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UI
Undisclosed Integrator #1
Mar 27, 2017

It's not like there are no companies in the west who offer free or heavily discounted trips to conferences or whatever. Maybe not so much in the security industry but it is definitely a tactic of free enterprise sales.

JH
John Honovich
Mar 27, 2017
IPVM

Maybe not so much in the security industry

Well, we are in the security industry.

it is definitely a tactic of free enterprise sales.

For sure, it's not a capitalist vs communist thing. My point was that it is a heavy investment and not something pure low cost plays do.

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UI
Undisclosed Integrator #3
Mar 30, 2017

Come to our land, let us buy your loyalty.  Help us make "All your base, all belong to us."

Oh wait, don't we (sales) all do this in one way or another to maintain/entice customers?

Good business practice: decent to good product (if you can secure it), great pricing, and deep pockets to afford these trips.  

It's too hard to standalone with a strategy of "just produce a great product" use minimal marketing, minimal expenses, minimal everything and expect integrators/dealers to flock to you.  Doesn't work that way in America.  HIK clearly knows that.

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JH
John Honovich
Mar 30, 2017
IPVM

It's too hard to standalone with a strategy of "just produce a great product" use minimal marketing, minimal expenses, minimal everything and expect integrators/dealers to flock to you. Doesn't work that way in America. HIK clearly knows that.

Agreed. And Hikvision deserves credit for recognizing that and building a sales and marketing organization to address that.

One of the reasons I post these items on Hikvision's trips and parties and dancers and events, etc. is to point out that they are spending an immense amount on sales and marketing all the while selling products at dramatically lower pricing than any other competitor with similar sales / marketing (leaving out Dahua USA who is obviously losing lots of money). My point is with Hikvision is that eventually they will need to raise prices or cut back on this sales / marketing spend because the combination (even with their lower production prices) are not sustainable.

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UI
Undisclosed Integrator #3
Mar 30, 2017

Totally agree John at some point they need to recoup.  But not until they starve out the rest of manufacturers til there are 4-5 (major) left.

On the flip side, what HIK is doing is great for the industry if you ask me.  Its forcing manufacturers to improve/innovate or disappear.

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JH
John Honovich
Mar 30, 2017
IPVM

On the flip side, what HIK is doing is great for the industry if you ask me. Its forcing manufacturers to improve/innovate or disappear.

If Hikvision vanquishes most of the manufacturers, I doubt that's good for the industry. I don't think that is going to happen but it appears to be their goal. More suppliers makes industries healthier as it fosters competition.

I do agree with you theoretically that pushing rivals to improve/innovate is good but what we are seeing is that a lot of manufacturers think it is pointless in the face of Hikvision's vast subsidies / funding and so that makes things worse. 

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UI
Undisclosed Integrator #3
Mar 31, 2017

Agree with you completely that its not good to have only a few manufacturers. But they sure can go for it and I don't fault them for that.  

My comment was more on optimism hoping manufacturers rise to the occasion. Those that can't weren't meant to be.

By no means am I rooting for HIK, but they are good for the industry in terms of challenging.  

Evoluton.  Only the strong make it.

 

UD
Undisclosed Distributor #4
Mar 30, 2017

"All your base are belong to us" is the actual quote, but A++ for the reference!

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UI
Undisclosed Integrator #3
Mar 30, 2017

You're right!  I love that video.  For those not privy to my reference I believe its perfect not only for our security industry, but the 2 countries involved:

America won't wake up in time and see that China is doing what they do and soon there will be only 1 superpower left.

JH
John Honovich
Mar 30, 2017
IPVM

America won't wake up in time and see that China is doing what they do and soon there will be only 1 superpower left.

Don't be so pessimistic. China is building up a massive debt bubble. It's like a person maxing out their credit cards. If you look at what they are buying in the short run, it looks like things are fantastic. But sooner rather than later, people / countries need to handle their debts much like the US faced in 2008.

UI
Undisclosed Integrator #1
Mar 31, 2017

I think the rest of the world would feel this is

ALL YOUR BASE BELONG TO USA

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U
Undisclosed #5
Mar 30, 2017
IPVMU Certified

Probably not cost effective overall.

As an example, although Marty C. obviously deserves to be first in line to receive any such perk, would such a trip actually lead to a greater commitment/loyalty from him?

For such an exemplary dealer, "Doubling down" on Hik may be mathematically impossible ;)

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MC
Marty Calhoun
Mar 30, 2017
IPVMU Certified

Thank you for the wonderful comment U#5, I am humbled that you would even consider mentioning me for such a "world-class event". I think that such a trip (if offered) would be a once in a Lifetime experience and I cannot think of a better bunch of folks to spend that time with. Its disappointing that so many people are "looking thru blinders" and cannot see the deep cultural roots these people enjoy during their lives and the "respect" their have for their jobs. I look at pictures of Shanghai and Hangzhou and realize their are many more similarities to the US than differences. I would absolutely love the experience, thank you.

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U
Undisclosed #5
Mar 31, 2017
IPVMU Certified

I think that such a trip (if offered) would be a once in a Lifetime experience and I cannot think of a better bunch of folks to spend that time with.

Even if not offered, you should go then just for the experience...

Fear not, the way a drowning man fears not the rain...

 

UI
Undisclosed Integrator #6
Mar 30, 2017

... I wonder how many government watch lists this trip would put you on?

Avatar
Ethan Ace
Mar 30, 2017

I'm hoping none... see Ethan Is Going To China For 2 Weeks.

I actually think about this sometimes, as I've been out of the country six or eight times since then, and my Chinese visa is on the front page of my passport.

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UI
Undisclosed Integrator #1
Mar 31, 2017

Have you been out of the country since Trump has been in?

You might be deemed as "guilty by association".

American paranoia at it's best.

Watch out for the "Reds under the bed."

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UI
Undisclosed Integrator #6
Mar 30, 2017

I am sure you will be fine Ethan. 

I'm sure you will be fine Ethan.

JH
John Honovich
Apr 13, 2017
IPVM

Another dealer trip to Hikvision HQ:

JH
John Honovich
Apr 19, 2017
IPVM

From the Hikvision Europe dealer newsletter:

Note: the incorrect spelling of their own company's name is from their own newsletter.

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