Hikvision Drops ASIS / GSX, Ex-Dahua ISS CMO Takes Advantage

By John Honovich, Published Aug 02, 2018, 11:44am EDT

The fallout of the Ban Bill has begun and it is hurting the already beleaguered ASIS GSX show next month.

Mega-exhibitor Hikvision has now decided not to exhibit at ASIS GSX, dropping their 3,600 sqft booth, putting a big hole in the center of a show struggling to get exhibitors. But one marketer has already capitalized on Hikvision's pain.

Inside this note, we examine the move, why it happened and what it means both for ASIS and Hikvision. 

Drops ****

************* ** * ** booth ** *** ****** of *** **** ***** right **** ** ****. The ***** ***** **** a ********* ** ****:

********* *** ********* *** figurately **** ******* **** in *** **. ** more.

**** *** ****** *** Hikvision's ***** **** *, with * *** *** filled:

 

*** *** **** *** show ***** ****.

Hikvision *******

************, ***** *** **** little ********** ** ********* USA. ***, **** *** ******* costs. ***** ***** **** are *** **********, ***** are ******** ** ********* in ***** ***** ** setup *** ***** * booth **** ***. **** is *** ** ******* the few ******* ******** ****** party **** ******** ****.

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

***** **** ** **********, it ** ***** ******* the ****** ******* **** in ***** ******* *** still ***** ** '*' list ** ******** *** users. **** *** ***** to ** *** *****'* leading ************ ************, *** exhibiting ** ****, ********** after *** ********** ***** and ********* ******** ** the **** *** *****, is ********* ********.

**** *******, ** **** are *** ******* ** spend ***/** ****** ** embarrassed ** **** ** ASIS, **** **** ** they **** ****** ** sell ** ***** *** users ***** *******?

ASIS ***** *****

*** *** **** *** ASIS ** **** **** already **** ***+ ****** empty **** *** **** next *****, **** *****'***** ***** ****, *** *** ***** blue *****:

**** **** **** *********'* spot ** ****** ** moving ***** ********** ** the ****** *** **** they ** ** *** edges ** *** **** floor (**** '*******'?) ** a **** *****.

Bullish *** ***********

** *** ***** ****, maybe **** ** ** opportunity *** ***** ********* to ******** ***** ********* spend *** **** ** ASIS. **** ***** *** Hikvision ** *** ********* now, **** ***** ** the ***** **** *** rivals ** *******.

Ex-Dahua *** ***** ********* *** ***

*** ****** ******* ** time ****** ********* ** this ***** *** *** ***** Fenner, *** ******** **** Dahua, *** ******* * prime ***** ***** ***** next ** **** *** ** the ********* ********* *****.

*** **** ***** **** fitting ***** ** ** take ** **** *****'* dropped ****. *******... 

Dahua ******* **

***** *** ********* ** us **** **** *** still ********** ** **** / *** **** * fairly ***** ***** ******* the *** ** *** show *****:

***** *** *** **** on *** ********* *** has ** **** **** the *** ****. ***, at ***** *** *****, they ******* ********** **** *** FLIR ******* ** *********** ** stand *** ***** ***** biggest ***** ** *** literally ******* *** *** show *****.

UPDATE: ********* *** ********

********* *** ******** * ********* ****** ** ***:

** **** ** ** effort *** ******* **** is ***** ** ************* its ************ **** ********* at *** ******** ****** Security ******** (***) ********** in *** *****, ********* confirmed ** ***************** **** it **** *** **** a ***** ** *** show *****. ******, *** company **** ** **** have * ********** ** representatives *** **** ****** the **** *** **** partner ******** *** ******* demos ** ********** ********** the ********** ******.

**** *** ******:

*** ******* ********** **** the ******** ** *** have * ***** ** the **** *** **** earlier **** ******, *** not ** ******** ** the ****** ****.

**** ** * ****-****** in *********. **** ********* says ** *********** **** but ******** *** **** issue. ********* *** *** do **** ** ******** to *** ****** **** - **** - *** the ****** **** *** just * ********* *** insiders **** ****. *** key ***** *** ********* the *** ** *** reconciled *******, ***** ********* knew ***** '******* **** summer'.

**** ** * *** of ****** **** *** their *******. ***** **** are ***** ****** ** believe **** ******** ***** ASIS ***** ** ********* to *** *** **** be ******* ********* ** their ******* ********** *********.

Comments (35)

Undisclosed #1

08/02/18 04:50pm

I think Hikvision pulling out of GSX is extremely significant. Most of their responses and actions to date have been just tersely worded Special Bulletins and an outward attitude of "business as usual, everything is fine". This is a very real and very obvious sign that everything is not fine, and that Hikvision is being affected in the North America market, and lowering their expectations in some way, admitting that things are not all roses and unicorns.

Pulling out of GSX at least allows them to save SOME face, as the show is struggling and the true deniers can still pretend like everything is great a Hikvision and they are just following the lead of other exhibitors dropping GSX. Their ISC West 2019 presence, and attitude will be even more revealing.

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Undisclosed #2

08/02/18 07:36pm

It seems to me Hikvision pulled out similar to a child throwing a tantrum that didn't get their way.

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John Honovich

IPVM | In reply to Undisclosed #2 | 08/02/18 07:43pm

Maybe, I don't know what is in their head.

I do think they have a genuine concern about how awkward / uncomfortable it would be for employees. Trump could sign this into law before the show. Imagine being a Hikvision salesperson having to face security directors a few days or weeks after this becomes law. What are they going to say? Seriously, I am curious for anyone who thinks they should exhibit, how would you handle it?

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Jon Dillabaugh

Pro Focus LLC
In reply to Undisclosed #2 | 08/03/18 10:15pm

Or maybe that’s just what fits your narrative?

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Undisclosed #2

08/02/18 08:10pm

I think they should just cut their losses and go after their strong verticals, SMB. Really everything is still fair game other than GOV projects. Were they really doing that much GOV business? I hope not.

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John Honovich

IPVM | In reply to Undisclosed #2 | 08/02/18 08:15pm

Really everything is still fair game other than GOV projects.

Depends on how the bill is interpreted but the 'critical infrastructure' and the grant sections could block out a much wider swath of business.

And let's say an integrator only does 10% or 20% of business in that area, do you use Hikvision for everything but that or is it just simpler / easier to standardize on a brand with no legal or brand barriers across your entire user base?

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Clint Hays

Rasilient | 08/02/18 08:48pm

Come say hello at our booth! 

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Undisclosed Manufacturer #3

08/02/18 09:01pm

This will certainly bleed into SLED. 

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Undisclosed Manufacturer #4

08/03/18 12:39am

Asis is a dead show and Hikvision is only the beginning until everyone understand how much waste of money it is.

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Abdelhamid Metwally

IPVMU Certified | 08/03/18 10:28am

I think more importantly, what is going to happen to the many other Hikvision OEMs regarding the exhibition? I sense that they will still be affected by the same law. I also imagine that longer term some of the Taiwanese OEM manufacturers such as Dynacolor could take advantage of this.

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John Honovich

IPVM | In reply to Abdelhamid Metwally | 08/03/18 10:35am

Abdelhamid, yes, I think you are right about Taiwan OEMs taking advantage of this. I also think the smaller Chinese OEMs may as well (Sunell, TVT) though the big OEMs might be nervous about the ban spreading to those companies too.

As for the OEMs exhibiting at the show, I think they will try to avoid discussing it. They don't disclose nor market Dahua or Hikvision's brand anyway. However, they will likely have to look for alternate OEM suppliers.

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Clint Hays

Rasilient | In reply to John Honovich | 08/03/18 01:26pm

I'm very curious to see the big brands response to this. IIwas told UTC  weren' worried about backlash on projects affecting them. I don't believe it completely.

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John Honovich

IPVM | In reply to Clint Hays | 08/03/18 01:29pm

UTC is oblivious generally. When not running Lenel into the ground, they are pretending they do not OEM Hikvision for Interlogix.

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Abdelhamid Metwally

IPVMU Certified | In reply to John Honovich | 08/04/18 06:53am

Maybe, but I guess that even if they are aware it would be difficult for them (and other OEMs as well) to change their relationship with their OEM manufacturer overnight while maintaining their old price structure.

I would imaging most OEMs will try do the change as discreetly as possible while maintaining "business as usual approach".

Either way, its possible that they will only switch to Taiwanese OEM for markets such as the US while maintaining their relationship with Hikvision/Dahua for most of the rest of the world.

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Undisclosed #2

In reply to Clint Hays | 08/03/18 10:24pm

Honeywell's AND Interlogix think they are exempt because they load their own "Cyber Security Firmware" on the cameras. So I've been told.

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Jon Dillabaugh

Pro Focus LLC
In reply to Undisclosed #2 | 08/03/18 10:27pm

I can only assume IC Real-time will use the same reasoning. 

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Undisclosed Manufacturer #6

In reply to Undisclosed #2 | 08/03/18 10:43pm

Someone should reiterate to them that if the PCB and MAC address and firmware layout and web ui layout, etc. all point to Hik/Dahua, then it is a dahua.  If it was manufacturer in their factory, it is still an OEM.  The actual firmware doesn't determine the manufacturer.

That is like saying that you put MacOS on a PC, so it was made in California...

I thought one of the proposed bills had language regarding OEM...

I can't wait for the lawsuits against all of the OEMs who will stil try to sell to the Govt.

Maybe they will wake up and decide to ACTUALLY MAKE THEIR OWN PRODUCTS, or find a different OEM.  

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Undisclosed #5

08/03/18 02:05pm

NOTICE: This comment has been moved to its own discussion: Where's The Hikvision ASIS Booth?

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Janet Fenner

08/03/18 02:41pm

Quick comment abut ASIS/GSX: 

We are all commenting on how the show is struggling but in actuality their net square footage is about the same as it was in Dallas, all the open booths that are still available are more due to the square footprint in which they have to work with, it is a larger space.

It's correct to say that GSX is the 2nd largest show in our industry, and keep in mind that they do bring a different format than ISC West. 

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John Honovich

IPVM | 08/03/18 11:39pm

Lol, Hikvision has provided a statement excuse to SIW:

As part of an effort the company says is aimed at personalizing its interactions with customers at the upcoming Global Security Exchange (GSX) conference in Las Vegas, Hikvision confirmed to SecurityInfoWatch that it will not have a booth on the show floor. Rather, the company says it will have a contingent of representatives who will attend the show and host partner meetings and product demos in facilities throughout the conference center.

With the kicker:

The company reiterated that the decision to not have a booth at the show was made earlier this summer, and not in response to the Senate vote. 

This is a mini-lesson in deception. What Hikvision says is technically true but obscures the real issue. Hikvision did not do this in response to the Senate vote - true - but the Senate vote was just a formality and insiders knew this. The key event was including the ban in the reconciled version, which Hikvision knew about 'earlier this summer'.

This is a bit of litmus test for their dealers. Those that are naive enough to believe them dropping their ASIS booth is unrelated to the ban will be equally oblivious to their Chinese government ownership.

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Undisclosed Manufacturer #6

In reply to John Honovich | 08/06/18 11:32am

If anyone has an archived version of the show Floorplan from 2 months. Ago or so, I am sure it shows Hik, which means they planned on having a booth, and paid for it, and then decided to pull. 

Having their people around to do demos and be in other booths only seems petty and cheap.

 

But maybe they are finally changing marketing tactics and not just throwing money around for once.  

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John Honovich

IPVM | In reply to Undisclosed Manufacturer #6 | 08/06/18 11:35am

#6, we do have an archived version and we shared it in the post:

Hikvision had a 60 x 60 booth in the center of the show floor right next to Axis:

I added a phrase to that sentence making it clear that screengrab was from July, the dropping certainly happened in the last month.

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Undisclosed Manufacturer #7

In reply to John Honovich | 08/06/18 06:38pm

It appears ASSA has also backed out relatively last minute. 

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John Honovich

IPVM | In reply to Undisclosed Manufacturer #7 | 08/06/18 10:28pm

#7, good idea. ASSA and its subsidiary HID and booths next to each other:

However, now ASSA is no longer on the show floor plan, though HID is still there.

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Undisclosed #1

In reply to John Honovich | 08/06/18 10:49pm

I am *almost* starting to feel a little bit bad for the GSX organizers (and maybe also the exhibitors that are going to be left on the floor). 

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John Honovich

IPVM | In reply to Undisclosed #1 | 08/06/18 10:51pm

I am sure you are, related:

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Undisclosed #2

In reply to Undisclosed Manufacturer #6 | 08/06/18 07:23pm

Firetide did the same thing before their collapse.

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John Honovich

IPVM | In reply to Undisclosed #2 | 08/06/18 10:29pm

Firetide did the same thing before their collapse.

Generally, companies with problems pull out at the last minute (and for big booths in big shows 2 months is last minute). For example, last year UTC / Lenel Joins FLIR Dropping ASIS

However, this does not mean / imply a company will collapse.

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Undisclosed #2

08/06/18 07:26pm

I hope GSX charged them a non-refundable deposite. Pulling out 2 months before is pretty messed up.

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John Honovich

IPVM | 08/14/18 03:54pm

Update: Hikvision has rented a giant meeting room ('Pavilion') in the hotel next to the Convention Center, as displayed on Hikvision USA's homepage:

From the Westgate's floorplan, Hikvision's spot marked below:

At 4,272, it is actually larger than Hikvision's previous show floor booth (at 3,600).

The big problem is that it will require a 10 to 15-minute walk from the show floor as the Convention Center is quite large overall.

 

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Undisclosed #1

In reply to John Honovich | 08/14/18 05:00pm

Plus it has the upside of keeping "angry bloggers" away from their booth asking pointed questions about DeepInMind analytics or the latest cybersecurity vulnerability.

 

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John Honovich

IPVM | In reply to Undisclosed #1 | 08/14/18 05:04pm

That is a lot of wasted money and hassle to avoid bloggers. That said, I don't doubt the closed aspect of it is a benefit. A safe zone, if you will.

Btw, your angry blogger comment prompted me to check back to their 2017 rhetoric. This aged poorly:

On February 17 2017, Hikvision NA President Jeffrey He decrying:

Over the past two years, Hikvision has received much praise and some shrill criticism from online bloggers. Facts are what matter. The truth will prevail. The online blogging site must be sensing its demise because its National Enquirer-style lies and misrepresentations get more ridiculous every day. [Emphasis Added]

 

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John Honovich

IPVM | 08/18/18 12:04pm

Update: DMP has taken a part of the ex-Hikvision booth and there is another part (20x30) still available shown below in blue:

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John Honovich

IPVM | 08/20/18 11:15pm

Update: Hikvision new blog post markets their ASIS non-show floor presence:

Please plan to visit the Hikvision showroom at the Westgate Las Vegas Pavilion #9. The showroom will be open the same hours as the GSX exhibit hall: Tuesday, Sept. 25 and Wednesday, Sept. 26 from 10 a.m. - 5:30 p.m.; Thursday Sept. 27 from 10 a.m. - 1 p.m.

This is even weirder. Why drop your show floor booth before the show and switch to a location that is harder for attendees to reach that is evidently still open to the public?

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Janet Fenner

08/21/18 01:23pm

Space off the show floor within the vicinity is harder to allocate after a certain point. The logistics of the booth is in the 100's of thousands for that size space, without adding the travel and entertainment of the staff that would've attended. However, I am sure there is still a considerable amount of logistics that will take place within the Pavilion. A smaller booth may have been the best play unless Hik did not want to be front and center. 

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