Hanwha Europe Discloses "New Pricing Policy", "Some Resistance"
Hanwha Vision Europe underwent a major shift in pricing strategy in 2023, impacting Hanwha users in Europe, creating winners and losers.
In this note, IPVM examines this disclosure and what it means for Hanwha and its customers.
Executive *******
****** ************ '*** ******* ******' ** ***** 2023 **** **** ******* ********* ****** Europe ******* ** ***** **** ********* policies ****** *******, ***** **** **** was *** "********* ** **********".
*** *** ***** ***** "************' ****** would **** ** **** *******." ** incentivize ************, ****** **** ** **** pay "* ****** ****** *** *** projects ***** **** ******* *** ********* our ********."
****** **** ** ******** "**** **********" but **** **** ******** "*** ******** distributors" *** ******* ********.**** ***** ****** ************ *** ** not **** **** ****** ********. ****** Europe ******** **** **** *** ****** margins ** ****, ****** ** ** incentive ** ****** *** *******/****** **********.
****** **** **** ** ***** ** continue *** ******, ***** "*** **** well ******** *** ***********," ****** ** does "*** ********** * ******* ***** increase."
"New ******* ******" *********
****** ****** ******************* ** **** ** *** ******** in **** ** "***** *** ********' pricing ****** ****** *** ***********" ** imposing * "****** ****** *****" ** the ******** "* ********* ******* ********" were "********* ** **********" ****** ******:
**** *** ********* ** ******'* ******** ****** ******(***** ******** ** **** ****).****** ******** ************* ** *** **, ***** mandates ********* **** ******** ******* ******** in ************ ***********.
"Distributors' ****** ***** **** ** **** *******"
****** **** "********* **" *** ******* would ****** ** ************' ****** ******* "in **** *******" ** ******. ** compensate, ****** **** **** ************ "***** receive * ****** ****** *** *** projects ***** **** ******* *** ********* our ********." ****** **** **** **** would ******* "*** ******** ************":
**** ** ***** "*** ******** ************" include*******,***, ******, *********** ******* ******** ** **** ** *** countries ** ******.
"Some **********" ********
****** ******** *** *** ******* ****** to ****** "**** **** **** **********", but **** ** ***** ******* *** STEP ******** ** ****** **** "**** competitive *******, *** ******* ******** ** project ******* *********". ****** **** **** this ***** "******** *** *********** ** STEP ******* ****** ******":
*******, ****** **** **** ***** **** "a ******** ****** ** *** ******" and "*** ********" ** *** ************. (Hanwha **** *** ******* *** ** the ******* '********' **** ***** ****** this ******.)
Who ****
*** *** ******* ****** ******** ******** two ***** ** ****** *********: ***-******** distributors ***********,***, ******(*********** ******* ******** ** **** ** ******) and ******'***** ********.***** ********* **** ******* * "****** margin" *** "**** *********** *******," *** Hanwha.
Who *****
************ *** **** **** ** *** country *** *** *** **** ******** thus **** ****** ****** ******/***** *******. Additionally, ** **** ******* ******** *********, a ******* ***** ****** ****** ** harder ** ****** ***** ******* *** typically ******* (*.*., ****** *** *********** *** *********** **** * *** Per ****** ** $**,*** *** *** also ** ****** ** ********* **** a *** *** ****** ** $*,***).
****, ****** **** **** *** *** policy *** **** "**** ******** *** implemented" *** ******** ** "****** ** change" ** *** ********* ******** **** for ***/**********. *** ******'* **** ********, see *****.
Thin ****** *******
****** ****** ******'* ****** ******* *** very **** (*.*% ** ****) *** have **** ********* ***** ****:
**** ***** ********* *** ****** ****** to ****** ******* *** ********** ******* for ***** ************. ******, ** ********* **********, ****** **** **** ** **** it "***** ** ******* *** ***** growth ***** ********** *** *************, ** increasing [******'*] ****** *** ******* ***** control ** ********".
Hanwha ********: "*** * ******* ***** ********"
****** **** **** *** ****** "*** not ********** * ******* ***** ********" and ******** ** "****** ** ******" to *** ********* ******** **** *** SIs/Installers:
**'* ********* ** **** **** **** price ********** *** ** ********* ****** regions ***did *** ********** * ******* ***** ********. While doing this, we adjusted distribution’s buy price in some regions (with some regions remaining unchanged). However, we ensured that there was almost ** ****** to our suggested Partner (SI/Installer) discount rate by increasing our back-end STEP Partner discount rebate provided to the distributors. [emphasis added]
****** ********* *** ****** ***** ** "early ****".
New ****** "**** ******** *** ***********"
** ********* "**** **********," ****** **** IPVM ** *** **** ******* ***** its ************ ****** ** ****** **** upfront ********* ** ***** & ***********. ****** **** **** ******* ***** fears, *** *** ******* *** **** "well ******** *** ***********," *** ** plans ** ********:
*** ******* ******* *** **** **** Distributors *** ** ****** **** **upfront ******** ***** to aship & ***** *****. However, our view is that the new pricing policy has been well accepted and implemented by our channel partners. We **** ******** to closely monitor the pricing structure and implement any necessary changes. [emphasis added]
****** ********** **** *** **** **** was ** "****** * ********** ******* *********" ****** Europe, *** ******-***-***** ***** *********.