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Conflict ** ******** **** *******?
Hikvision continues to ramp up its direct-to-customer sales.
Comments (26)
Undisclosed Integrator #1
If HIK is selling this kit for $199, and amazon is making a cut ($20?) after manufacturing and shipping, how much could HIK possibly be making on this? Let's say they make $100. Wouldn't two or three tech support calls eat up this profit if you are paying your tech support staff $20/hr? I can't imagine an end-user NOT needing tech support at some point, especially trying to configure motion-triggered recording or port forwarding/reader QR code for auto-setup.
What's the end game here for HIK? These kits are fixed at 4 cameras, you can't add more, so they can't be looking for upsales. I don't understand the strategy - at least with professional IP cameras, you can expect to sell more, or sell upgrades etc. It seems like the Home Kit market has zero possibility for more revenue after initial sale and almost guaranteed future costs to support from HIK (tech support). What is going on here?
You start to see why the Chinese Government conspiracy theories make more and more sense.. Maybe this is just a way to get inside every network in every home in America. Will the payoff be one gigantic DDOS attack in a few years?
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Robert Shih
10/10/16 04:09pm
Wooooow... How does anyone in the industry sit comfortably with this? Hikvision sure knows how to burn us all down the the ground in style.
What's next, Hikvision displays at Best Buy and Hikvision certified installers? Invading Magnolia and cutting everyone else out altogether?
Jesus... and they sit on enough cash to buffer the overhead for all of that too.
Winter is coming to Westeros.
Edit: Spoke too soon. They're even already at Walmart/Maomart.
Either we collectively have to find a way to shut out the retail options and let Hikvision play alone in the dirt, or we're all getting dragged into the mud.
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Jon Dillabaugh
10/10/16 06:06pm
Not every client wants this level of product. The ones that do probably wouldn't be a client I want anyways. I know it lowers expectations for the industry overall, and that is my main concern. But, generally speaking, the DIY capable guy probably wasn't going to pay me thousands more anyways.
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John Tran
Ezviz system is not on par with the pro systems. They don't officially support VMS so even if it works, you will not get support for it.
The cloud connection is P2P so the connectivity is not stable as using DDNS.
If you are thinking about using the browser for the DVR/NVR system, you have to use their cloud solution which doesn't support device configuration and setup menus.
You can't login to the DVR via web browser for admin function. You have to logon to the actual DVR/NVR.
Ezviz is geared a lot towards DIY consumers.
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Undisclosed Integrator #4
Is this similar to Hikvision selling IP cameras on Amazon (by company Hikvision) versus buying from an authentic distributor at a 30% higher cost?
It burns those installers/integrators that are trying to be competitive, only to find out that the cameras are cheaper online.
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Chuck Hage
Anyone shocked by this article has had their head buried in the ground. Hik has always been this way and you turned a blind eye because you were reaping the profits of grossly overcharging your customers for substandard products.
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Scott Sheldrake
I would actually say that generally speaking HIK has the superior products right now in most categories, with the exception being some of the Axis PTZ cameras.
The fact that HIK is also the cheapest is insane! Make money while you can, because as more and more integrators switch to HIK, the "race to the bottom" will transfer from manufacturers to integrators and things will start to get ugly. In the same way that camera manufacturers will need to reinvent themselves or go out of business, larger integrators will need to find new revenue streams or start laying off staff as newer leaner and more nimble smaller companies compete on price like never before.
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Chuck Hage
I appreciate your responses as there is much truth to what you both said. I was referring to the almost decade long past of Hik Tactics whereby offering customers the same products as the higher-end manufacturers at half the price when I mentioned substandard. Yes, recently Hik has caught up on all fronts but this is the monster that our own industry has created.
If you bought and sold Hik products under your own oem brand and didn't have the foresight to know that they would be coming after your market, your customers and everything else, then I do not know what to tell you. They've been doing that in other markets like Latin America for many years now.
It's not so much as a race to the bottom but rather taking a fair approach and not jumping on the lowest price possible band wagon. Let's be real, integrators/installers do seriously over charge for their services. The price of installation has long been higher than the price of the product for a long time now. It used to be that an installer would buy the system for $2,500-$3000 and charge the customer $5k for the products and install. Then Hik came around and installers started buying the products for half the price or less and still charge the $5k. I see it happen here in our local market all the time. That is what I meant by grossly overcharging. But hey, you reap what you sow.
Robert we don't know each other but I too know what the process is like of bringing in products from overseas, selling/supporting etc.
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Chuck Hage
Hi Undisclosed,
In reference to your statement, that's where we come in as security professionals and explain to the customer that if they buy the product online, it may be cheaper but they will be without support. Ask your customer if they've ever tried calling a manufacturers support line and experienced the customer support quality. A lot of companies even charge for over the phone support after 3 months of purchase date. The general consumer does not know how to set up their cameras on their phone or open ports on their router etc.. they will need a professional to help them with these tasks.
Yes, the product you're selling may be more expensive than online prices but that's because you let them know that you have their back.
At the end of the day, we can't win them all. I've had customers leave me for cheaper alternatives only to come back later and admit that the level of support provided by other companies is not worth the cheaper prices.
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Undisclosed Manufacturer #6
Once you make that shift from industrial to consumer, the commodification of cameras will be all but complete - and it's coming soon.
You better be selling and creating a solution that is knowledge and culturally based. SIs will scrap for every advantage and price is always the 600 lbs Gorilla.
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Undisclosed Distributor #8
Won't let distributors sell to public but doing it them self ?, watch out distributors as you may no longer be needed.
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