DW Races Hikvision To The Bottom

By: John Honovich, Published on Aug 30, 2016

20% across the board price cuts are so last week. Literally.

Days after Hikvision concluded its second 20% across the board price cut in a month, Digital Watchdog has beat Hikvision with a 25% one.

In this note, we examine what DW is doing, what this signals for them and the broader market as the race to the bottom accelerates.

**% ****** *** ***** price **** *** ** last ****. *********.

**** ************** ********* *** ****** 20% ****** *** ***** price ***** * *****, ******* Watchdog *** **** ********* with * **% ***.

** **** ****, ** examine **** ** ** doing, **** **** ******* for **** *** *** broader ****** ** *** race ** *** ****** accelerates.

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

DW ***** vs ********* *****

**** ** **'* ***** valid ******* *** ** August ****:

** **********, **** ** Hikvision's **** **** ****:

*** ********* ** ******* similar, ***** *** ***** and ***** ***** ** discounts *** ** ** more ********** ** **** have ** ******* ****** for * ******** (******** gets ** ***** **%), the ******* *** ******* savings ** ***** ($*,*** vs $*,***) *** *** max ******* ** ****** (25% ** **%).

** **** **** **** this ** ******** ** be ** *** ** month ******* **** ******** savings *** ***********. **** are ********* ****.

Dangers ** ****

*******, ***** ** (*** Hikvision) *** ** ******* integrators ** *** ***** term, *** *** **** of **** * **** is ************ ********* *** DW *** *** ***** company *** ***** ** a **********. **, **** most *********** *********, ***** to **** ******* ** stay ** ********. ******** prices ** **% ** a **** *** ** gross ******* *** ******** manufacturers. **** * ***** discount **** ****** ** cash **** ******** **** **** but **** ** ** for * ********** **** or * ********* ********* to ******** ****-***** ** keep ** *******.

********* ******** **** ****. The **** ******* ************* try ** ***** ***** Hikvision, *** **** ****** they *** ** ********** go *** ** ********. Hikvision *** ****** ** lose ***** ** ***** America ($* ******* *******, Chinese ********** *********, **** advantage ** ******** ******, etc.). *** ******* ************* cannot.

** *** ***** ****, it ** **** ** blame ** ** *** other ******* ************ **** responding. ** ** ****** a **** **** **** strategy *** ** *** be * ********* *** when ********* ** ******** 100+ salesman ** *** ***** combined **** ************* ***** **** that **** ********* **** every ************'* ********.

*** *** ***** ** ***** DW ***** ** ** focus **** ********. ****** **** *** (******* Optix) ****** **** **************** ***** *** ****** *** ******* had ******* (*** **** sold **** ** ****) ** ** ***** DW *** **** ****** to fighting **** ********* ** the ******, ** *** bottom.

Comments (9)

Are they really a manufacturer, or essentially a Dahua/NetOp OEM?

I know the ISD cameras are their 'own', (or were their own), but maybe some of the risk is underwritten by Dahua here for their cheapest product?

To the best of my understanding, they are a Korean / American hybrid company and use Korean manufacturing.

We have no relationship with Dahua.

Apologies, Patrick.

For the record then you are not an OEMer of someone else's cameras?

Is it true Hikvision dictates the pricing cuts/discounts for distributors?

I still firmly believe these price cuts are a very smart strategy by Hikvision to drive profits away from grey importers.

Is it true Hikvision dictates the pricing cuts/discounts for distributors?

Hikvision authorizes / sets the discounts for distributors. If that is what you mean by 'dictates' then yes.

these price cuts are a very smart strategy by Hikvision to drive profits away from grey importers.

Why? They are going to cut prices for any product and any customer to combat grey market imports of their Chinese version products. Are there no more efficient ways to go about this?

You can set prices for distributors all day long but they will find a way to squeeze it up unless you register with them or the vendor to get it back to a reasonable level. They do this to every vendor, except maybe the ADI/Honeywell relationship.

Monthly specials are different, those I am sure are agreed in advance at set levels.

The war will continue until your down to a few video vendors just like motions sensors and control panels. Look back at the intrusion business history.

The war will continue until your down to a few video vendors just like motions sensors and control panels. Look back at the intrusion business history.

That is the Hikvision justification for what they are doing here.

Please make a stronger case for your analogy. Just because you say it is, does not make it so.

Looks like Videofied is trying a slightly more cautious approach, 15% off your first purchase. This is at least a little more sustainable, get people to try the product, then hope they buy more at regular price.

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.

Most Recent Industry Reports

Honeywell 30 Series Cameras Tested Vs Dahua and Hikvision on Dec 11, 2019
Honeywell has infamously OEMed Dahua and Hikvision for years, but now they have introduced an NDAA-compliant line, the 30 Series, claiming "lower...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
IP Camera Browser Support: Who's Broken / Who Works on Dec 10, 2019
For many years, IP cameras depended on ActiveX control, whose security flaws have been known for more than a decade. The good news is that this is...
Acquisitions - Winners and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...
Viisights Raises $10 Million, Behavior Analytics Company Profile on Dec 09, 2019
Viisights, an Israeli AI analytics startup marketing "Behavioral Understanding Systems", announced $10 million Series A funding. We spoke to...
Disruptor Wyze Releases Undisruptive Smartlock on Dec 06, 2019
While Wyze has disrupted the consumer IP camera market with ~$20 cameras, its entrance into smart locks is entirely undisruptive. We have...
Bosch Budget 3000i Cameras Tested on Dec 05, 2019
Bosch has long had a hole in its lineup for, as it describes, "competitively-priced cameras". Now, Bosch has released its 3000i series cameras...
Anixter Resisting Takeover From Competitor on Dec 05, 2019
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
Security Sales Course 2020 - Last Chance Save $50 on Dec 05, 2019
This sales course is customized for the current needs and challenges specific to professionals selling video surveillance and access control...