Hikvision North American Team Up 163% in 17 Months

By IPVM Team, Published on Jun 17, 2016

Hikvision suddenly has established one of the biggest physical presences in North America.

This is an important development to understand the company's emergence and success.

In this note, we examine the numbers and what it means for them and their incumbent rivals like Axis and Avigilon.

Hikvision ******

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

*** **** ** *********'* NA ******** ****** ********** fast (** ** ****** basis, ** ** ********), their ***** **** ** now ***** *****.

Comparison ** ***** ************* 

**** ***** ************ *************, except *** *** **** largest, **** * *** dozen ** **** ********* in *** '*****' (*****, marketing, **) ** ***** America.

**** * ******* ** companies, *** ******* **** Axis *** ********, **** numbers **** ***** ** surpass *********. *** *******,*** *** **** ***** American ***** ************ ******** map / *********, ***** ***** **** with * ******* ****** of *** ******* ** *********. Likewise, ******** *** * very ***** ************ (**** excluding *** ** / factory ****** **** **** in **).

Why **** ** *********

*********'* ***** ***** ******* and ***** *** **** are ********* **** ********* elements *** ***** *********. But *** ****** *** with **** ******* **** with ****. ******* **** people **** *****, ******* local, **-**** *******, ****** relationships **** ***** ****** that **** **** **** in ***** **** *** all ******** ******** *** scaling. 

******, ** ** ** accident **** **** *** Avigilon *** ** *** scale **** *** ** and **** * ******* size **** ***** ************.

**** ********* *** **** willing *** **** ** invest in **** * ***** and ********* **** (********, these ********* ** ********* are ****** *** ** / ****** ******** ****** normal / ********* ******* wages) ** ** ********* element ** ***** *********.

** ******* **** ******** people do *** ******* *** big *** **** ********* has ***** ***** ***** American **********. ** *** individual *********, **** ******* Hikvision ***'* ******** ********* and ***** *** ****** employees [**** ** ****** available].

Overtaking The ******

********* ** ********** ***** rivals **** ** ***** of ***** *** ***** presence ** ***** *******.  

***** **** ** ***** ****** have **** ****** ****** in ***** *** ****** ********* has **** *** ********. If **** *** **** this **, ***** ********* to **** **** **** like ******* ******** ** a *** ***** **** now. 

Poll: **** *********?

Comments (11)

With 150 total votes, there is a significant difference between integrator and manufacturer voting. More than half of integrators are open to taking a job at Hikvision but less than 30% of manufacturers are. We have never done a poll like this before so we can't tell how this would compare to other manufacturers.

"Hikvision's solid image quality and super low cost are certainly very important elements for their expansion. But you cannot win with most dealers just with that."

I tend to disagree here, or contend there is more to it on that point. While having regional support is important, too, I think low cost is the real overriding factor here. Why else would a product with so many cyber security issues, funded by its home government in a way that really looks like they are subsidizing Hik to price competition out of the market, be making so much headway?

I've come to two conclusions watching the back and forth debates about Hikvision. One, anyone who has to compete against it will jump on any negative possible like a dog on a bone, understandably so. The other, dealers of Hikvision desperately seem to want to gloss over and minimize the negatives because they don't want to loose their cheap cash cow that makes them price competitive.

While having regional support is important, too, I think low cost is the real overriding factor here.

So I agree that low cost is the critical factor, meaning that without it, the rest of the strategy does not work. For example, IDIS. They could hire 300 people in NA but at their price point, they simply won't win anywhere close to the number of dealers as Hikvision.

My point is that it's more about the combination of the two. Use Dahua as the contrast. Dahua sells products in the same price range but their lack of organization and delay in scaling out local operations means they are far far behind Hikvision, given the overall closeness in price and performance of the two products.

Agree/disagree?

I do not disagree, but to me it is a matter of degrees. It's not just an acceptable performing product at a cheap price that has support, it's an acceptable performing product at a cheap price that has support, enough so we will look over the security issues and business practice because if we don't sell it, someone else will because customers don't know enough to look for those things.

Why else would a product with so many cyber security issues, funded by its home government in a way that really looks like they are subsidizing Hik to price competition out of the market, be making so much headway?

The end-user has shown enormous apathy to security's cyber-security. And the customer's the boss, right?

Ditto with subsidies. The topic might cause quite a lively, if abstract discussion at the pub, but when reaching for their wallet, with the goods in country already, is a customer really gonna pay an extra 50% just on principle?

The end-user has shown enormous apathy to security's cyber-security. And the customer's the boss, right?

Related: Cyber Security For Video Surveillance Study

People

PLease wake up and smell the coffee! Hikvision Is winning on the quality and price wars. Not as rare as we want to think. Japanese cars overtook the American market the exact same way. I do understand the issue of cyber security but IMHO the #1 rule is to separate security from the INternet. The issue of cyber security is a serious one and can not be discussed in a post.

It remains that their products are as good or better than competitors' costing three times as much. I don't see people gobbling Vivotek or IQinVIsion the same way. Their performance is upper echelon while their price is basement ... They have disrupted the Surveillance world, that's for sure and what we see could well be the tip of the iceberg.

I don't see people gobbling Vivotek or IQinVIsion the same way.

That's because those products are more expensive and have less sales / support (IQ of course is now a part of Vicon but, even before that, its pricing and sales staff was nothing like what Hikvision is doing).

Again, I am not doubting the image quality, product reliability or relative cost competitiveness. I am saying that's not enough to scale in this industry. You have to lots of feet on the street.

Their performance is upper echelon while their price is basement ...

And that is the part that we will have to see is sustainable. Basement prices with massive local sales and support has never been a viable long term business because of the high cost structure in such local field operations. Maybe Hikvision will be the first or maybe it will come crashing down.

I wonder what impact this has other distributors who stock HIK? I bet Dauha wished they did their deal with Tri-Ed instead of ADI

Also I know Scansource will not sell HIK, to my knowledge they are largest holdout.

I bet Dauha wished they did their deal with Tri-Ed instead of ADI

Well, ADI does much much more in sales than Tri-Ed, so I think that is the attraction for both.

Update: Hikvision said recently they are now at ~300 employees in the US and planning to add around 100 this year:

He expects to have more than 400 employees in North America by the end of the year.

This will likely include the 50 direct from college sales people we covered recently.

 

Read this IPVM report for free.

This article is part of IPVM's 6,592 reports, 889 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Brazil Assembly Powers Hikvision Local Expansion on Jul 15, 2020
Hikvision has grown considerably in Brazil ever since the 2017 opening of an...
Avigilon Announces 10K / 61MP H5 Pro Camera on Oct 05, 2020
Avigilon announced its 10K / 61MP H5 Pro camera at the 2020 IPVM Fall New...
Hikvision Global News Reports Directory on Aug 13, 2020
Hikvision has received the most global news reporting of any video...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
Directory of 97 Video Surveillance Startups on May 20, 2020
This directory provides a list of video surveillance startups to help you see...
Longse Promoting Hikvision Partner Fullhan Chip Based Cameras on Oct 14, 2020
With Huawei HiSilicon production being shut down at TSMC, camera...
ButterflyMX Raises $35 Million on Sep 30, 2020
Startup ButterflyMX has raised $35 million for its smartphone based intercom...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Camera Course Summer 2020 - Last Chance on Jul 18, 2020
This is your last chance to register for the Summer 2020 Camera Course. This...
Verkada Access Control Tested on Sep 09, 2020
Verkada raised $80 million earlier in 2020, expanding from video into access...
Hanwha 8K / 33MP Camera Tested on Sep 14, 2020
Hanwha Techwin has released an 8K / 33MP resolution camera, the TNB-9000 with...
Hanwha Presents AI Analytics and First 8K Camera on May 11, 2020
Hanwha presented their AI Analytics and the "Industry's First 8K" camera at...
Video Surveillance 101 Book Released on Jul 07, 2020
IPVM's unique introduction to video surveillance series is now available as a...
China Dali Fever Cameras and Booming Sales Examined on Sep 11, 2020
Zhejiang Dali, one of China's original thermal technology developers, has...
JCI "Fever Camera" Partners With China TVT on May 19, 2020
Johnson Controls (JCI) is the next big player to get into the 'fever camera'...

Recent Reports

ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Ubiquiti Access Control Tested on Oct 21, 2020
Ubiquiti has become one of the most widely used wireless and switch providers...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic i-PRO presented its X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...