Dahua Demotes USA CEO

By John Honovich, Published Jun 19, 2017, 10:26am EDT

Dahua has demoted their USA CEO Tim Wang.

Inside this note, we examine the move, Dahua's challenges and what lies ahead for the mega-manufacturer.

Wang **********

*** **** *** **** Dahua *** *** *** the **** *** ***** and *** **** ***** executive ** ** ***** releases *** **** *** years (*.*., * [**** no ****** *********], * [link ** ****** *********], 3 [**** ** ****** available]). **** ********* **** having ****** *** ***** since *** ***-***** *** therefore *** **** ********** with ***** ** / China.

USA *********

**** ******* *** *** expansion **** ****** ** organization ** ***+ *********.

Revenue ***** *** *******

***** ***** *** *********** OEM ******** ** ***** America (***** ** ******** at $***+ ******* ** 2016, ********'* *** *** *******), ***** ***** ******** branded ******** ** *** far *******, ****** ** the ~$** ******* **** revenue *****.

Challenges *** ****

**** ******* / ******** from * ****** ** challenges, **** **:

**** *** ********** **** liked ********** *** *** unwilling ** ********* ** making ********* *********, ********* to ******* ******* ***** to *** *******

New **** - *****

*** *** ***** *** boss ** ***** *****. Zhang, ** ***** ********, is *********** ******* / hidden. *******, ** *** listed ******* ** '***** Strategy *******' ** ******** cards ****** ** ******** people. ***** *** ********* the ****** *** *** Wang ** **** * Global ********** ******.

Expansion *********

***** ** ******** * lot ** ***** ** North *******. **** ***** the ***** **** ***** backdoor, ***** *** *** stopped ************ ******, ********* a ******** ******** / ******* American **************** ********* ** *****'* East ***** / ************* facility.

West ** **** *****

*** ******** ******* ** Dahua's ********* ** *** splitting ***** ******* *** US **** *** **** Coast *******. ***** **** and **** ** *** Dahua **** ** ***** in ******** **********, ***** and *** ********* *** leadership **** ** ***** on *** **** *****. Typically, *********, ********** ** small ** ***** *** branded ***** ***, ***** having ***** ******* ** power.

Sales **** ******

*** *** ***** ******* for ***** *** / NA ** * ***** American ** ******** **** of *****. ***** ** planning ** **** *** and **** **** ****, especially ***** ***** ** so ******* ***, ** date, ********* ** ** the ****** **** ** Dahua.

Vote / ****

Dahua *** ******* *********

********** ** *** ** in ****** ** ***** USA, *** ****** ******* is *********. *** ***** can ** ********** ***** the ****** *** *********** situation ** **** ** imagine. ******* **** *** not **** ****** **** / ********* ********* *** the **** ******** ** Dahua ***** *******, ******** tens ** ********, ****** they *** ******* ***, is *** **** *******. To ****, ***** ** going ***** *** **** smaller, **** ***** ********* dealers ** *********, ***** is **** ***** *********'* much **** *********** *** position *** ******* *** larger *****. *** ***** lacks *** ******** ** branding ** ******* ** the ****** ** **** end ** *** ****** against *********** **** ****, Avigilon, *******, *********, ***.

**** ** **** *** the '*****' ****, ** certainly ** *** ****** to ******* *****'* **** fundamental **********.

Comments (13)

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Jon Dillabaugh

Pro Focus LLC
06/19/17 04:01pm

They need to secure their software/firmware and make a few product tweaks, but in general, they have a very good, well performing product. They really only fall on their face when it comes to software/firmware. That is a big deal, don't get me wrong. But, I also think it is something that could be fixed quickly with the right people.

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John Honovich

IPVM | In reply to Jon Dillabaugh | 06/19/17 04:07pm

secure their software/firmware and make a few product tweaks

That's, at best, indirectly responsible / controllable by a branch division like Dahua USA.

Jon, the element that you are ignoring is the economic, which is understandable since as an integrator you are most focused on product quality, support and price, not economic sustainability of the supplier.

Dahua's USA problem, even if they improved where you want to improve them, is they have a relatively huge staff on the branded sales and marketing side (100 or so), with correspondingly few customers and it's not like improving the product will solve that.

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Jon Dillabaugh

Pro Focus LLC
In reply to John Honovich | 06/19/17 07:35pm

JH, you could be right. I'm looking at it from my perspective.

But, my perspective is that I stopped using them due to these issues, so I assume others have as well. If sales drop due to firmware or software concerns, that is going to affect the ability to maintain profitability.

In my opinion, it all starts with the guys selling the product. If we won't sell it, no matter how well they advertise, or hire hundreds of nice people, they won't be sold.

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John Honovich

IPVM | In reply to Jon Dillabaugh | 06/19/17 07:45pm

JD, let's put it this, if Dahua fixed their product problems, would you switch back from Hikvision?

I am not trying to put you on the spot :) as much as I am emphasizing that it will not be easy unless somehow Hikvision stumbles... 

I stopped using them due to these issues, so I assume others have as well

Well, you were early, relatively speaking. Worth noting that Dahua USA (branded) started off and still has a very small customer base (again relative to Hikvision but also Axis, Avigilon, Hanwha, etc.) so the question is how does Dahua make headway into a crowded market where a larger competitor has already spent heavily with the same approach Dahua has taken so far.

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Jon Dillabaugh

Pro Focus LLC
In reply to John Honovich | 06/19/17 07:54pm

We actually prefer the Dahua product over Hikvision when it comes to ease of installation and overall physical design. Hikvision bullets are a pain in the ass to aim. They have large notches that do not allow for sine adjustments.

Also, Dahua doesn't seem as sticker happy, placing many unneeded warning labels on their accessories, like Hikvision does. Sure, you can peel them off, but unless you get all of the sticker residue off, it will attract dirt.

We usually received better pricing from our Dahua OEMs (prior to Dahua USA sales) than we do from Hikvision USA, so we are now spending more for Hikvision.

The Hikvision UI for their firmware is better than the Dahua UI, though. That is a rare positive for Hikvision, other than firmware and software that is.

So, to directly answer your question, I think it would be logical if they cleaned up their firmware and software issues. We wouldn't have left otherwise.

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John Honovich

IPVM | In reply to Jon Dillabaugh | 06/19/17 07:56pm

JD, good feedback, thanks!

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Sean Nelson

Nelly's Security
In reply to Jon Dillabaugh | 06/19/17 07:20pm

Totally agree, this factor (along with some QC issues) was enough for us to drop the OEM line totally last year. 

The reliability factor needs to increase by getting more stable firmware releases and fixing "wierd" bugs. This would help launch Dahua IMO. 

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R. Cortland Tompkins, PhD

IPConfigure, Inc.
06/19/17 06:47pm

In my capacity as VP Engineering here at IPConfigure I had the opportunity to work with Feng (Frank) on an IoT surveillance initiative before he joined Dahua.  He's an affable guy with a deep technical background.  I would expect big things!

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John Honovich

IPVM | In reply to R. Cortland Tompkins, PhD | 06/19/17 06:56pm

Cort, thanks for sharing!

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Robert Shih

Independent
In reply to R. Cortland Tompkins, PhD | 06/19/17 09:24pm

This gives me a bit of hope in what seems to have been a lot of uncertainty lately with Dahua.

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Blake Murphy

06/21/17 05:30am

Working for a competitor I am still impressed with the image from Dahua.
I hope their urgency in the race to the bottom 2 does not end up ruining a great competitor.

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Greg Austin

06/21/17 12:09pm

Agreed on the software difficulties; also HIK UI is a little better than the Dahua UI.

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John Honovich

IPVM | 06/28/17 10:12am

Update: Dahua USA has issued a press release confirming their 'Strategic Alignment to their Organizational Structure'.

It now lists / calls Frank Zheng the President of Dahua USA.

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