Hikvision's Brazil Business Examined

Estimated ****** ***********

**** ********* **** ********* ** ******'* second-largest ***** ************ ************, ******** **** Brazil-based, *****-***************.

********* ***** ****** ** ********* ** Brazil ** *** ********* ** *** parties **** *** ****** ****, **** those *** ******* ********* *** ***** compete ******* ****. *** ***** **** Hikvision ** ****** *** ** **** the ***** *** ** *** ********* video ************ ****** (*.*. ****** ********* and *****-***** ** *******) ** **** as ** *** ******** ***** ************ market ** * *****. ** *** high ***, ********* ** ******** **** Dahua *** ********* *** ***** ********** to ******* ******* ****.

************, ** *********'******** **** *** ******(*. ***), *** ********* ************ ***** Hikvision *** *********'* ****** ***** ** two ** *** ***** "********* ***********" in *** ********** ******** ******** (******* as ***** **********, ***** *******, ** CCTV, ******, ***** *******, *** ****/****** security):

*** ********** ***********, ** * ****** call **** ****, * ******* ** a ***** ********* *********** ********* *********'* and *********'* ******** ********* **** ****** share ** **%.

Hikvision ***** ** ******** ***** ** ***-*****

** ******, *******, ***-*** ************* *** niche ********* ** ***** ** **** and ****** ***** *** ********* **** to *** ****** *** ** *** video ************ ******. **********, *****-***** ********* is ******** **** ** ***** ********* end-users **** ** ******* ***********, ********* and ****** *********, *** ***** ******** such ** ******, ***********, *** **********.

********* ** *** **** ************ ****** present ********** *** ********* ***** ************ market, **** ********* ******* **** *** under **$*** ***ã* *****'* **** ******** *** *** **** *** *********** proposing ********* ********* ** *****-******* ****** bids ** *** ***** ****.

********* ***-***** ******* ************** ** ******, such ** ******-**************. ********* ******* ********** ** *** registers ** * ********* *********** ****** *********:

*** ******* ** *********'* ****** ***** was ****** ** ** * ****** Hikvision ****** ********:

******** **** *********—**********, ***********, ******* ******, etc.

********* ************ã* *****, *** ******* ******** ** *ã* Paulo (*****) *** ****** ***** ** São ***** (****) ******* ** ********* executives ** ********* *** Á***** ** Souza ** ****:

****** *********** **** *ã* ***** (****) ******** 1,522 ******* ********* ******* (****. *,*** directly **** *********) ******* ** **** and ** ****.

**** ********* ****** ******** **** ************ the ******** ** ** ******* ** the ********** ****** ** *** ******** Brazilian **** ***** ** ****çú(*** *****):

Products / ****** ******* ** ******

** ***** ** ******, ******* ********* cameras ******* ****-**-****** *****-***** ** *** analog *******, **** ** ***** ***** below, **** *** ******** **** ** small ***-***** ** **** ***** ********** the *******.

********* ******* ** * ***** ********** in **** *********:

********* ****** * ***** **** **** in *ã* *****:

Brazil ****** *****

********* ****** *** *ã* ***** ****** in ****; *******, *** ********-***** ************'* ******* products **** **** **** ** ****** since ****-**.

** ********* ** * ********* ********** characterized *** *******'* ***** ***** ** "very ***":

********* *** **** *** *** ** part ** ******** *** ***** ******** to ***** *** ********* ******. ***** had ******* ********* **** ********* [** **** ******** ** ****, ***** and ********* **** **** ******** ***** 2007], *** **** [*****/*********] **** ******** the ******.

***********, *** **** ********* ********* **** Hikvision "***** *** ***** ********" ***** 2014, ****** *** ******* ** *********'* São ***** ****** *** *** ****** of **-******* ********** ** ******* **** led ** ** ******** ******* ************ in ******.

************, ** **** *** **** ********* by ******* ********* ** * ********* Hikvision ********** ** * "**** ** the ******," ********* ******* * ***** war **** *********, ******* *** ******-***** company ** ***** *** *** ****** to ****** ****** *****.

***** ********* *** *** *** ******** its **** ** ********* ********* ** the ***-****** ****** ** ********* ***** surveillance, ** ******* ******* ** * Brazilian *********** **** **** **** ********* did *** **** **** ********* **** the ***** ***:

********* ** ****** ****** ****** ***** from ********* ** *** ***** *** of *** ******, ********* **** ** be **** **** ******** ** ****** like*** ***** ****ê*** [*ã* *****'* **** street].

Advantage: ****** **********

********* ** ***** ********* ***** *****(*. **), *********'* "************* ****" ********** ***** ***** ************ *** **** eventually **** ** "****** ********** ******** of * ******* *****."

****** ******** ************* **** ********* ** claiming **** ********* ******** ******* ******** ** ******** *** ********* ***** **********, *******:

* ** ******* **** ** **** help, * ***...** ********** **** **** to **** *** ************* ******** ** Manaus.

***** **** *** *****, *** ***** major ********* ** *********’* ***** ********** is *** ******** ** ********* ***** in ******.

*** ******** ***** ** ** ** to ****** ********** ** ******, ******** in ******, *** **** (*.*. *********).

**********, **********.

** *** ******* ** ************ *** has ********* **************, **** *** ****. The ********* *** ******, *** **** also *********** ** *** ***** *****. Hikvision *** ******* ******.

************ ** *********'* ****** ************** ****. ** ***** ** *** producing ** ****** ** ** *********, local ************* ********** *****, ******* ********, and ***********:

• *****: ********* ****** **** ****** ***** on ******** ***** *** ******** *** breaks **** *** ********* ********** ** the ****** ******** ** ******.
• Foreign ********: Products finished in Brazil are priced in Brazilian reals while products imported into Brazil (by Hikvision as well as by other manufacturers) are priced in US dollars or euros. Given the volatility of the Brazilian real, pricing in local currency is an advantage for Hikvision.
• ***********: ********* *** ****** ****** ** Brazil *** ** **** ** ******* orders **** ******* **** ***-*** ***********.

Success: *********** ****** ******

********* *** ********* ** ******* ** sophisticated, *****-***** ********, ****** ******-***** *********** such ** *********,**********/**** ********, *** ***. ****, ****** ***-*** competitors **** ** ****, *****, *** Hanwha, ********* **** ***** ** ***** volumes ** *** ***** *** ** the ********* **** ******, **** ******** analog *** *****-***** ****** ****** ******* for **** **** **$***. ********* ** a ****** ********, **** ******* ** sell ****** *** ******** ** ******* is *********'* ******* *******:

*********’* ******* ****** ********* *** ****** product...Hikvision **** **** ***-***** ******** **** low ******.

********* ** * ********* **********, *** PRC ************ ********** ********* *** ****** as *** *****'* ******* ***** ************ manufacturer ** *** ********* *******:

[****] *** **** *** ** ********* “we’re ****** * [*********]” ****** ****** to **** ****** *****.

**** ******** ** ******* ** **** marketing **** ** * ***** ********** in **** *********, ***** ******** ***** of ********* *** ****** ******* **** tagged **** ******** ******* ********* ** Portuguese ** *** "***** ******" ** "electronic ********":

Success: ******* **** ******* *********** *** ***********

************ ***** ******** ** ****** ** São *****'* ********** **** ********* ******** ******* *** positive ******* **** ***** ******* ****** "only ******** ****** ** *** ***** the ******* ** ********* ********, **** commonly ********** ********* ********* ** '*********.'”

***** *********** ** *** ** ******* and **** ********* **** ******** **** sentiment, **** *** **** ********* ********** telling ****:

*********/****** ** ****** ******* **** *********. I **** ******* ********* **** *** client **** *** **.

* *** ** *******-***** ******* ********** who ******** ********* *** ***** ********* to * ********** ****** **** *** initially ******** ** ******** *** ****** added:

** ***, **** *****’* ***** ******** wrong **** *********.

Success: ***** ****** ****

** ******** ** *** ********, ********** Brazil, ** ****** **** ** **** Horizonte, *******ó*****, *** *ã* *****, ***** laws ********* **** ***********' ************ ** measured **** ***** **** ****** ****** such ** *****, *******, ***********, *** supermarkets.

***** ** **** *** ** *** the **** ****** ****** **** ** fulfill **** ***********, ************** **** ****** pockets **** ****** ** ********* **** as ********* ***** *******,** ******** ** **** ** ********. (***** **** ****** *** ********* on ******** **, **** ***** ********* fever ******* ** *** ******* *****, raising *** ***** ****** ** *ã* Paulo ***** **** ********* ***** ******* to *****.)

***** **** *****, ********* ***** ********* have **** ************* ** *** ********* ***** ** Paraíba*** *** ******* ** ******** ** Brasília ****ã* ******* **** ** ** **** ********* *** ********* *******, ***** ***** places.

*********-******** ***** ********** *** ***** ****** implementation ** ****í***'* *******:

Challenge: "*** ** *********** ** **** **** ****"

**** ******* **** *********'* ******** ***ã* *****'* **** ********* *** * ******** ** **** of *********. ***** ** ** **** to ** * *** ** ****** without ******** ** ********* ******, *** same ****** ** **** ** *********.

* ********* ********** ****** **** ******** in *** ** **** ******** *********'* efforts ** ******:

** ** *******, ********* *** ******** dumping, ********* ***** **** [***] *** government *** *********** ** ********. ********* continued [***] ***** *** ***** ***** took ****** [** ****] *** ******* taking * ******** ** *** ***. [They're] ***** ***** * **** ***, but ** * **** ****** ***** point.

*******, **** ***** *** ******** ** a **** *********-***** **********, *** **** IPVM ****, *** ***** ****** ***** considered, *** ******* *** ******* * "17–18% **** ******* **** *********" **** the **** ** *** ******* ** opting *** ********* **** *********, ******** reliability ******** ** *********.

Challenge: ********* **** ****** *******

*********,***** ******* **.*% ** *** ********* access ******* ****** ** *** ******** 2020 *** ******, ***** ***, **** ******, *** Yale ** *** ***** *********** ** access *******.

** ** *** **** **** *******, IPVM *** ******* **** *********-******* ****** control ********* *** ** ******** ***** throughout ******, ** *** ***** ****, IPVM *** *** ** *** * Hikvision-branded ****** ******* ******* ** ******.

* **** *********-***** ********** *** ********* works **** ********* ***** **** ** a *******:

* **** ** *** **** ********* access ******* *** **** *** *** so ****** *****.

*** **** **********, ***** *********** *** breadth ** ********* ******** *********, ********* that *** *** ************ ** ********* in **** *** ***** *** ****** control ******** ** ******.

Challenge: ************ **** *******

********* *** * ******* ************ **** the ******* ** ******.

*** ********* *********** ********* *********** **** Hikvision ** ****, ****** ** "******** commercial ******" *** "**** *******" *** telling ****:

********* **** ** ****** ***** ** integrators *** ******** ***-************.

**** ***********'* ************ **** ******** **** a ****** ********* ****** ********, *** told **** **** *** ********-***** ************ is "** ****** ********** *** *******" and **** ********* ** ********* ** implement * ******-**-***-**** ***** ****** ** Brazil:

********* ** ****** ******* ** ****** product *** **** *** ******* *** own *********** ***** ** ******. ** you *** ** ********** *** **** a **** **** ********* ****** ** bid *** * *******, *** **** lose *** *** *** **** *** that ** ***** ***** *********** **** bid ** *** **** ******* **** the **** ********* *********. ********* **** not ****** *** ******,the **** ** ******* **** ********* ** ************. [emphasis added]

* *ã* *****-***** ********** ******* ***** that **** **** ********* ** *** easy, ******* **** **** ********* ** "very **********" ************ "**** *** ***** on ************' *******:"

********* **very ********** **** *********** *** ************ and uses hard politics to make them sell and put in orders. [The manufacturer] “puts the knife on distributors’ throats” and forces them to buy a lot of Hikvision products in order to maintain their status as Hikvision vendors. [emphasis added]

*******, ****** ****** ***** ***** **Á***** ** *****, ********* ******'* ******** *********** ********, emphasize **** ********* ****** ****** *** channel *************.

** ******* ****, **. ** ***** posted * ********* ********* ***** (*** right) ******** **** *********'* *********** **** its *********** *** * "******* ***********."

****** *** **** ****,**. ** ***** ********** ******** **********#respecttotheintegrator (see below).

**** ****, ***** ********* ******** ****** to ******** *** *** *******, *************** of *** ******* ** ****** **** underappreciated *** ************ ********* ** * difficult ******** *******. ** ******* ** the *********, * ******-***** ***** ******* wrote ** ****:

***** ** * *** ** ********** things **** ********* ****.

Challenge: ************* ********

************* ******** **** *********** ** ****** ****** **** ************** *********'* ********* **** * *** at *ã* *****'********** *******:

The ***-***** ********* *** ****-***** *** ****** ******** **** *** **** ********** ** ***** ******* *** **** *****. [emphasis added]

***** ***-********************* ** **** **** *** ******** reason *** ********* *** ****** ** bid *** *** ******* ** ******** was **** ** *** **** **** it ******* ** ******* * *********** affirming **** *** ****** ******** ** its ******* ***** *** ** ****** outside *** *******, * ****** ********* employee **** **** **** ********* *** to ****** * **** ********** ** vulnerability ****** ******:

********* *** ***** *** ******** ********* by **** *** ******* ** ****** backdoors. **** *** ******* ****** **** into ***-*****’ *****: *********/*****/******* = ********.

*** **** ****** ******** **** **** that ******** ***** ********* ******** *** be ****** *********:

**** *** ******** **** ******. ***-***** forget **** *** *** ****** ** professionals ** ******* **** ******. *********** need ** ** ***** *** ****** install *** ***** **** ****** ********* and *********.

***** *********** *** *********, ** ** integrator ** ******* ****** **** ****, an ***-****'* ******** ** ** **** Hikvision ** * ***-*** ***** ** usually ********, *** "***** **** ** the *******:"

******** *** ****** ************** [*** *********]. Does *** ******** **** ***-**-***-**** *********? Or **** ** **** **** ***** price?

** ********* ** ** ******** *********, combatting ************* *********** *** ******* **** skeptical ***-***** **** ** *** ** success.

Challenge: **** ** *********?

* ****** ********* ******** **** **** that ******* ***** ***** ****** *** world, *********'* ***** *********** ** ****** remains *******:

**** ***-***** **** ** **** *** they ***. [***] ********* **** **** profits **** *** ********* ***** *** little **********.

***** ********* *** ** **** ****-***** domestically **** ******** ** ******, *********'* number *** ********** ****** ****** ** Intelbras, ***** ****** ** * **** of *******, ********* ********* ** ***** Brazilian ******, * ***** ******* ********, and **********, ** * ********* **** in ******.

** ******** ** ******* **** ******* brand ***********, *********, ** ******** ** IPVM ** ********, ** ** *** process ** ******* *** *** ****** brand ********** ** ******* *** *****-*** and ***-**** ******* ********.

***** *** ******* ** ****** *** be * **** ** ********* *** marquee ********* ***** **** ******-*** ********, the ****** ***** ******* ********* *** market. *** *******, **** **** ******* a **** ********* ********** *** ***** a ***** ********* **** *** *** difference ******* ********* *** ******, *** sales ********* ****** ******** *** ****** the ***** ***** *** ****.