Dahua Launches Aggressive Hikvision Style Sale

By: Brian Karas, Published on Nov 16, 2016

If you can't beat 'em, join 'em.

This seems to be Dahua's strategy, first mimicking Hikvision in portraying themselves as an American treasure, and now offering deep discounts to encourage sales.

We have details of their new sales promotion, and analysis of Dahua's move in this report.

** *** ***'* **** 'em, **** '**.

**** ***** ** ** Dahua's ********, ***** ********* Hikvision ** ********** ********** as ********** ********, *** *** ******** deep ********* ** ********* sales.

** **** ******* ** their *** ***** *********, and ******** ** *****'* move ** **** ******.

[***************]

Dahua *********

**** ***** ** **** similar ** ******** ***** that ********* *** ****. Discounts ** **-**% ** any *******, ***** ** total ******** ******, *** offered *** ***.

Aggressive **** ** *****

**** *********-***** **** *********** shows * *** ********** on *****'* ****, ******** on ********** ********** ** the***-********** ******* ************, ** **** ******** encouraging ***** *** *********. This ** *** ***** time **** ***** *** offered ********* **** **** as **** ** ***** US ********.

Another *** *** ***

*** ** ******** *** go-to *********** ** *** race-to-the-bottom, **** ********* *** now ***** ********** ***'* reach *** ***** ******** promos, *** *** ********** participating **** ***** *-*** low **** *****-*****. **** is * *****, *** win, *** ***, *** had ********* **** ** "alarm *****" *********** **** a *** ***** ***.

Bad **** *** *** ********

**** **** ** ***** only ******** *** ****-**-***-******, and **** ******** ************ for *** ****** **** regular ********* ** ***. It **** ********* **** Hikvision's*******-********** **** *** *** be ************ ********* **** looking ** ***** ******, making ***** *** ***** deciding ****** ** ******* selection.

Comments (13)

Does Dahua have the kind of backing (i.e. ability to print money) that HIKVision has? Seems a losing strategy if you hop in to a fight that you can't possible stay in for long, it just speeds up the day that HIK runs them out of money

Seems a losing strategy if you hop in to a fight that you can't possible stay in for long, it just speeds up the day that HIK runs them out of money

Matthew, good question / observation. They reported ~$200 million net profits in 2015 off of ~$1.2 billion in revenue.

Right now, they claim ~60 US employees, let's say $15 million annual expense assuming $250,000 per employee (factor in total comp, travel, marketing expenses, etc.).

Assume a fairly bad example that they sell next to nothing this year, Dahua could absorb that $15 million.

So not as big as Hikvision (which is roughly 3x+ greater) but still big enough to do it now.

Of course, as you allude to, at some point, it needs to turn the corner. I think it will be tough for them to get their (unclear / limited differentiation and copying Hikvision market approach but late even if they could fix their poor organization) but they can surely spend some more and cut some prices, at least for the foreseeable future to see if this will work.

Seems a losing strategy if you hop in to a fight that you can't possible stay in for long...

You're assuming they're losing money.

There's no evidence of that in their financials, as of yet anyway.

There's no evidence of that

That Dahua USA is losing money?

Of course, Dahua USA is losing money. The only question is how much. To be specific, by Dahua USA, I mean Dahua USA branded sales, not their legacy OEM business.

Of course, they can reasonably say "Hey we went from ~5 to ~50 people in ~10 months, so obviously we will lose money at first, but then the hockey stick will come". The debate then becomes will they see the hockey stick curve.

Of course, Dahua USA is losing money.

I didn't say that Dahua USA is or isn't losing money. I said Dahua, meaning the parent.

Keep in mind I was responding to Mr. Netardus' statement of:

Does Dahua have that kind of backing, (i.e. ability to print money...)

So the answer is yes, if as a whole Dahua continues to make money, it would be able to continue backing Dahua USA, even if Dahua USA took some time to be profitable.

So the answer is yes, if as a whole Dahua continues to make money, it would be able to continue backing Dahua USA, even if Dahua USA took some time to be profitable.

Agreed, so the two big things are ability to continue to generate China profits and willingness to fund losses for the USA branded sales.

From the recent article regarding Longse, Dahua is selling a 4MP camera for $150-160, while Longse sells it for $40 and is still making at least some profit.

There is a decent chance they're both using the same chips from Ambarella, Hisilicon, TI, etc. Based on this, Dahua's hardware costs are probably very similar to what Longse's are, so there is a quite a bit of extra profit for them. This is of course purely on a hardware level, Dahua would obviously have much higher overhead.

Things that Dahua includes in their price that Longse does not:

  • Shipping to America / foreign country
  • Sales through distribution (ADI etc. get cut)
  • Local sales team
  • Local marketing team
  • Local English based phone support
  • Local field engineers
  • 5 year warranty

Even if you assume the hardware is exactly the same (which I would actually be interested to see proof), they are including much different overall things (i.e., above).

Dahua does include extra in its price. On the other hand, as the equipment gets cheaper and cheaper, the value of some of them is less and less, and can be offset by buying more and more.

Shipping to America / foreign country
Buy more, earlier. Buy for stock.

Sales through distribution (ADI etc. get cut)
Buy more, earlier. Buy for stock.

5 year warranty
Buy extras.

the value of some of them is less and less, and can be offset by buying more and more.

Yes, there is certainly that potential.

Interestingly, though, while Longse is big in DIY, Longse still seems to have very low penetration in the professional dealer space. For example, in our surveys, very few integrators talk of using them.

I'd be very curious to hear of any integrators / installers regularly deploying 100+ Longse cameras a month and how they are doing with that. Anyone doing that or know someone, please share.

Does buying $950 worth of stuff actually cost you more than buying $1000?

From what they posted, yes. Same as $1900 would cost you more than $2000 worth of stuff.

All the more reason to add a few more things to your order, which is most likely exactly what they would want.

If Dahua would concentrate on being their own company instead of trying to 1up Hikvision all the time I believe they could make a well rounded product. They are constantly pumping out products way to early to try and keep up with Hikvision and it shows in the quality and performance of their products.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on Sales

Directory of 55 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
Startup Vaion Launching End-to-End AI Solution Backed with $20 Million Funding on Jun 17, 2019
An EU / USA video surveillance startup, Vaion, founded by ex-Cisco Senior Directors is launching an end-to-end VSaaS platform with $20 million in...
Sighthound Transforms Into Enterprise AI Provider Profile on Jun 14, 2019
Sighthound is now rapidly expanding its R&D team, building an enterprise AI service. This may come as a surprise given their origins 6 years...
False Verkada 'Unrivaled' Low Light Performance Claim Removed on Jun 12, 2019
Verkada falsely claimed that it delivered 'UNRIVALED LOW LIGHT PERFORMANCE' until IPVM questioned. In fact, Verkada's low light performance is...
Carnegie Mellon AI Startup Zensors Profile on Jun 11, 2019
Zensors is a startup formed by Carnegie Mellon graduates from a Carnegie Mellon research project, offering customized models per camera that they...
Startup Rhombus Systems Says Twice the Features, Half the Price of Verkada on Jun 04, 2019
Closed cloud systems may be the fastest growing segment of video surveillance with Meraki and Verkada. Now another California company is joining...
China / US Trade War Impact Splits Industry on Jun 04, 2019
As the trade war continues to heat up, 170+ integrators told us "What impact will the US / PRC China conflict have on the industry?" Respondents...
Panasonic Sells Off / Spins Out Security Business on Jun 02, 2019
Panasonic has sold off its security systems business to a private equity firm, after suffering years of challenges. The new company, which will...
Verkada Favorability Results 2019 on May 29, 2019
Verkada has taken the industry by storm with the fastest growing video surveillance sales organization ever and a half billion dollar valuation....

Most Recent Industry Reports

Security Dealer 'Social Media Contractor' Program on Jun 25, 2019
A $20,000 video surveillance system can be yours for free if you are willing to post on social media about the security dealer. Good deal, bad...
Axis Live Privacy Shield Analytics Tested on Jun 25, 2019
Privacy is becoming a bigger factor in video surveillance, driven both by increased public awareness and by GDPR. Now, Axis has released Live...
Directory of 55 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Hikvision ColorVu Camera Tested on Jun 24, 2019
Hikvision says their new ColorVu line captures "vivid chromatic images in darkness", with unconventional white light illuminations whereas most...
China Subway Facial Recognition System Examined on Jun 24, 2019
A China city of 6+ million people has installed facial recognition-enabled gates in subways, allowing commuters to enter stations by simply showing...
HID Mobile Tested on Jun 21, 2019
HID Global is one of the largest access brands, but their mobile access has had challenges. Indeed, the company has already restructured their...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
Risk of Amazon Alexa Guard: No Battery Or Cell Backup on Jun 20, 2019
Amazon positions its Alexa Guard Service as a "smart home security system" and says it can help you "keep your home safe". However, the...
Exacq Remote Cloud Access Tested on Jun 20, 2019
Remote cloud access has been missing from most VMSes (including Exacq and Milestone). Now, Exacq, after releasing Cloud Drive Storage earlier in...
Briefcam Buys Frost Award* on Jun 20, 2019
Frost 'awards' are well-known and widely disrespected. Now Briefcam is touting their win. The way it has worked for many years is that Frost...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact