Hikvision Launches Ezivz Direct End User Sales

By John Honovich, Published Nov 18, 2015, 12:00am EST (Info+)

Hikvision will not stop until they dominate the entire market.

Turning on their manufacturer OEMs by OEMing to ADI and Tri-Ed earlier this year, Hikvision now turns on their integrator partners.

Inside this note, we examine their direct end user sales program, their new 'self-OEMing', how they are trying to hide it, and what it means to the industry.

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Comments (111)

Can't hide this information - whois record for evziv7.com

Goes to show a SEO score of 61% another classic piss poor written website.

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Hikvision has also created another evziv domain a few months ago - whoisrecord for ezvizlife.com same thing.

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It amazes me that they will cut their throat to sell direct. Between the OEM's and a few very large independent distributors, you'd think they would sacrifice a lot of reliable business. Another perfect reason and opportunity to onshore more manufacturing.

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We all knew this was coming...well at least I did. I would prefer if Hikvision would focus on their professional brand and stick with having professionals install their products. While it annoys me, I can't blame them for releasing this line. Consumer video surveillance is a growing market, in my experience, people want more than what companies like dropcam have to offer (meaning local HD recording). Hikvision AKA ezviz is helping to fill that void in the market. The more we see news segments on how a home video camera caught something cool or a bad guy, the more popular there are. You will see more people reaching out for professional installation and more reaching out for DIY kits. DIY may or may not always be a small market segment, but you're not going to see the owner of a 2.5 million dollar home go to costco and install his own surveillance system. He's ok dropping 20K for an install.

This is just one more obstacle, who cares. I don't compete with DIY home/business owners or truck slammers. If a customer wants something like that, I'm not interested in having them as a customer anyways. I don't sell to cheapskates, they're more trouble than their worth.

If something like this scares you. You should reevaluate how you do business, you've probably lost your imagination and aren't creative enough to stay in business much longer anyways. There's always a way to beat a loser.

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"If a customer wants something like that, I'm not interested in having them as a customer anyways. I don't sell to cheapskates, they're more trouble than their worth."

How does it make someone a cheapskate if they choose something like this?

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Typically they don't want to pay for professional installation because they don't see the value in having something installed professionally. They may not be cheapskates in every aspect of their lives. But when it comes to our product/service, they are. Therefore they're not the kind of customer we look for.

We only sell to customers who see or are willing to understand the value of our products/services and are willing to pay for it. Selling to customer who understands the value of your product/service increases the value of your business (and in turn will boost future sales because they become advocates for your brand).

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"Selling to customer who understands the value of your product/service increases the value of your business (and in turn will boost future sales because they become advocates for your brand)."

I'd agree it increases the profitability margin of a business but there's also the market size impact. The less expensive and easier products are to get and install, the smaller the addressable market is for professional services.

"you're not going to see the owner of a 2.5 million dollar home go to costco and install his own surveillance system."

Agreed, though to my comment above, I am not sure if there are enough 2.5 million dollar homes to keep all security integrators well fed :)

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You don't live in Sydney obviously :)

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I'm with John on this. It appears to me that HikVision is using this brand to compete in the DIY market, and maybe the low-low end of trunkslammers channels. This is a retail product you'd see at Costco, Sam's Club, Home Depot, Lowe's, Fry's, etc.

Companies like Swann and Qsee might be threatened, but I think we'd have to wait and see what the impact would be on mainstream commercial physical security.

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Pretty sure this is the first time I have seen people disagree with my comments...I wonder if the people who disagree with my comment would rather:

1.) Force people to purchase from a professional, even if they're not interested in paying for a professional. (Obamacare for the security industry?)

2.) Artificially lower their price to be more affordable.

3.) Lower the quality of their installers to be more affordable.

4.) Think hikvision isn't doing the right thing for their business. And consumers don't want an alternative to Dropcam like products.

5.) Other.

I am curious. Who knows, if someone can convince me otherwise they may convince me of the error of my thinking. I am open to anything.

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The first piece of advice I received years ago just starting out: "You can't lose money you never had".

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Correct. The integration market never had the low-end DIY system market.

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I have no issues with consumers making their own decisions. This move will however, cause me to re-evaluate where Hikvision fits into our business plan going forward. I will not compete against a factory.

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I guess I really doh't care that they sell direct. Someone was or will do it regardless, what bothers me is that they are a massive OEM and support some very large names in the industry. It can't sit well with them that they want to be everything to everyone although I doubt this cheap line will really compete that much with anything we do, as we'd lose that business to some Internet seller anyway.

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Michael, the bigger risk is where does it stop for Hikvision. They clearly have no firm boundaries on what and whom they are willing to sell to.

Ezviz may be a 'cheap line' today (though the kits look remarkably similar to what is sold professionally with the added bonus / differentiator of built-in cloud access), why should a reasonable person, given Hikvision's track record, think Hikvision will stop at that?

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In my opinion any integrator pushing Hikvision is slitting their own throat. Why would any self respecting integrator sell the products of a company that has had 2 (known) security breaches in one year? This should be the straw that broke the camels back for any integrator currently pushing these products. There are other options. I was very surprised to see Hikvision the brand itself as the third item on the growth list last week.

I happen to agree with the theme of Johns response, just maybe not the blunt force of it. Install someone elses product? Sorry, we dont do that, but here's our competition's phone number. Then again, I dont spend too much time worrying about the competition, mostly I focus on strengthening our offerings.

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"I was very surprised to see Hikvision the brand itself as the third item on the growth list last week."

Hikvision knows that the huge price discounts it offers is irresistible to most of the Western market. And they have so much cash from their Chinese government projects, that they do not need to worry about profitability overseas.

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Agreed. I see this as a dangerous trend. Mostly for smaller less developed integrators and installing dealers. They dont care about profitability... or loyalty, or cybersecurity, or many other things. Competition is good, encouraging total domination by supporting this trend, however, is not in the independents best interest.

That said, they're not the first to do this. They wont be the last. Show up, Suit up, so what you say you will, provide value and actually give a shit and your customers will love you.

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For the same reason that people continue to use Sony PSN, Visa, Target, Ebay etc who have all been subject to wide scale security breaches.

Not to mention the US Military.

Any integrator who ISN'T pushing one of Dahua, Hik or Samsung is going to be in for a very hard time as 9/10 you'll be priced out of the job all other things considered equal.

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Hence the reason we don't focus on residential. I understand this will spill over into very small businesses, but again, they were likely never going to call us anyway. You can't lose money you never had.

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I understand this will spill over into very small businesses...

Ever wonder where those small, desperate lowballing competitors come from?

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Swan was recently purchased. Who was the OEM and who bought them? I believe this is one driving force for this.
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They were purchased by Infinova, the same people that own March Networks.

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Show up, Suit up

Words to live by.

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Show up, Suit up

Ok, we're ready for the snap, but wait it sounds like the Raiders are calling an audible:

"Red Blitz 499, Red Blitz 399, E Z Hik Hik"

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Nice detective work!

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We owe it all to you, I'll forward your personal details to Hikvision immediately ;)

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We owe it all to you...

Thanks!

But I couldn't have done it without Ralph! Banking on his insatiable materialism, I 'suited up' as a Trojan Moose Mascot. And sure enough he took the bait. Once deep inside the Hik machine, I simply excused myself and wandered off into the first restricted area I could find.

Update: Hikvision has just issued a patch for MITM, (Moose-In-The-Middle) attacks.

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The fact that it is being underwritten to a degree by the Chinese government is the more unfair part of this effort. We sometimes forget that Chinese Corps are not wholly owned by individuals or stockholders the same way our Companies are. I don't want to start a rant, but there is an unfair advantage in there somewhere.

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This is absolutely right. Hikvision has an unfair advantage here over anyone else (incl. Dahua). They are basically being gov supported to take over the CCTV market outside of China (sure you may think it is paranoid but it's already happening).

They are able to make their margin in China market on gov projects to support their effort abroad to sell at virtually cost to 'buy' the business.

What's next? Buy integrators so they vertically integrate? Sounds crazy... or not. Probably better margin on labor then on the hardware at some point

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...works for Amazon...

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I would love to see a poll indicating how the IPVM memberships attitude and approach to hikvision is affected by things like hacking scandals and direct to consumer DBA's. Personally, I think you would be crazy to sell Hikvision at this point, but I wonder if the almighty lowest cost of entry really wins regardless of all that other stuff...

I see this also as a huge opportunity for Dahua and Uniview to step up and say "we will not turn our backs on the integrator/installer/distributor/etc." but my gut says they will be following this same path as well.

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To be honest, I think Hikvision only beat Dahua to the punch on this one. If it works, you will see Dahua do it too, as others already have. This is not really new at all. Having said that, it does change my perception of Hikvision as a partner, and they are not the lowest priced manufacturer in the market. They do have a really wide selection at competitive prices. That is their value, at least to me.

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Hikvision only beat Dahua to the punch on this one.

More like Hikvision and Dahua beat you with a one-two punch:

Also, we are planning to launch DIY products to cater to the market.” Dahua plans to launch a DIY kit that contains an IP cameras, alarm systems, and video intercoms, including indoor and outdoor stations for the consumer market. The DIY kit is scheduled to be released in October 2015.

...The home automation market is controlled by system integrators. With more and more device makers and retail brands entering the market, the market will face a drastic transition. We keep flexible manufacturing and stable product quality to survive in the competitive market. Applying our successful experience to the overseas market, we are sure to provide products that enhance consumers' comfort, security, convenience with compelling user experiences.”

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Armando, we do integrator surveys regularly, including one just last week. So far, the hacking scandal has minimal overall impact. We'll see what this one has.

"I see this also as a huge opportunity for Dahua and Uniview to step up"

Agree. The reality though is that Hikvision is a well oiled machine while Dahua is more of a clown car and Uniview needs to try harder. Let's see if Dahua can get their act together in 2016 and Uniview commits the resources to really expand and offer an alternative.

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Mark my words: despite all the comments here and the huge number of votes for this being unhealthy for the industry, and the cybersecurity issues, Hikvision will continue to be an integrator favorite next time we do a survey. I bet it even increases over the last time.

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They brainwashed you in China :)

I agree though. And it is hard to blame integrators. In any business, if a supplier can provide components for far less than their rivals and the business's customers don't object, what can the business do but buy those components from that supplier?

On the other hand, as others have noted, this is a big opening for Hikvision's competitors but can they execute on it?

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I agree with Ethan on this one - system integrators are still making good money and winning more projects by using these lower cost alternatives - and that's why they use them. I don't see the dynamics changing unless if they piss-off their distributors/integrators/OEM in a big way. Like many others in IPVM has commented on, this is a replay of the ASUS/Acer experience in gaining market share by offering better prices than Dell/HP.

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Funny you put it this way, the issue we've had is that lots of the big incumbent manufacs have been massively over-inflating their product pricing, frankly it's been very nice to see the big guys get pushed over and shown the reality of what hardware costs these days.. Mobotix prices have been a Joke for a long time, there are plenty of others (Axis looking at you)

I bet that a lot of people doing Hik stuff are seeing a massive increase in sales, largely due to the end user being able to afford much larger installs and a perceived far greater return for investment.

Last I checked pretty much everything is made in china these days so I'm not sure that angle really helps.

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"I bet that a lot of people doing Hik stuff are seeing a massive increase in sales, largely due to the end user being able to afford much larger installs and a perceived far greater return for investment."

Some of it being able to afford larger install but probably just as much or more is being able to beat premium brands by a lot and win more jobs, related I Lost My Axis Silver Partner Status Today.

"Mobotix prices have been a Joke for a long time, there are plenty of others (Axis looking at you)"

Mobotix has always been an extreme outlier. Looking at their 70% gross margins is way out of line with anything else in the industry, though my understanding is that the recently cut their MSRP 25% overall.

"shown the reality of what hardware costs these days.."

While I think the Western companies can get leaner, I am not convinced that Hikvision is charging the 'reality of what hardware costs these days'. Hardware might be cheap but local sales, marketing, support, etc. is still very expensive. And Hikvision's NA 200+ employees, marketing campaigns, trade show booths, has the same cost structure as their Western competitors.

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While I think the Western companies can get leaner, I am not convinced that Hikvision is charging the 'reality of what hardware costs these days'. Hardware might be cheap but local sales, marketing, support, etc. is still very expensive. And Hikvision's NA 200+ employees, marketing campaigns, trade show booths, has the same cost structure as their Western competitors.

I get the feeling they are using the very cheap Chinese labor/brains to reduce their showroom costs, so yes they have costs, but nothing like paying someone in the USA to do all the Development/sales etc

but you look at the big guys and they are pissing away money on all sorts of marketing crap that isn't worth much, no wonder they want crazy amounts for what is turning into just another network connected thing.

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"nothing like paying someone in the USA to do all the Development/sales etc"

No. Hikvision North America has a full on, full blown local / American sales, support, engineering, marketing infrastructure most assuredly paid in US dollars, competitive and comparable to Western companies (check their most recent big name hire). When they do huge booths and lavish parties at ASIS, when they send teams of American sales people to every random little show throughout North America, when they have more ads in trade magazines than any other vendor, they are paying normal Western rates.

I get that the 'Chinese' model historically is to take products made at a very low cost, apply minimal overseas sales, marketing, support to sell at cheap prices. But Hikvision is staffed and spending in North America at an Axis type rate, but still selling at 30-50% less than Axis. This is the part I question the financial sustainability because there are big costs in running large Western operations.

"pissing away money on all sorts of marketing crap that isn't worth much"

Hikvision has probably spent more on marketing in North America this year than Axis. They are all over the place here.

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Who has more sales $ in North America?

Axis or Hik?

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For 2015, in terms of dollars, it will still be Axis but it should be pretty close.

We are hearing Hikvision's 2015 NA numbers are in the $200 - $300 million range. Axis, by contrast, is in the $300+ million range.

Of course, since the average selling price of Hikvision cameras is way less, it means they are selling more units this year than Axis.

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Do you think that the OEM numbers are correctly accounted for? I'm guessing a lot of product booked as a China sale ends up ultimately sold here.

Like all the Chinese firmware models to start...

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yeah big time!

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I do not know. Presumably, the Chinese firmware models shipped in to the US do not show up on Hikvision NA's books. But how much that is would be hard to guess.

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oh ok, interesting that they are doing a big US push, there is no sign of them here in Aus, First time I heard of them at all was on some forums, maybe I'm not in the right circles.

if their cam's are costing them $30 to make, they may well be financially sustainable even with throwing away money.

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Sadly, they are definitely going to follow the same path.

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I seldom use HIK Vision, but now will see them as a competitor rather than an ally.

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We don't trust them, and don't feel comfortable selling after bad experiences and security problems.

They go direct routinely, never offer leads, and have no interest in taking care of their integrators.

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It is great to see this type of market intel being exposed. I work with large organizations on projects that are outside this level of equipment, but I like knowing who is out there to become a possible risk to my business. Nice article!

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Read the Amazon reviews. Not flattering. Only 5 of the 16 reviews were 5-star, and there's a confluence of reviews stating the camera is very hard to get set up, documentation is poor or non-existent, and support is difficult/impossible to track down.

It's one thing to sell into the DIY channel, it's quite another thing to try and do that without proper support.

Amazon Review for EZVIZ 720p Camera

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There should be a selection for "no impact on the industry".

DIY camera systems have been on the market for years and yet integrators are still in business.

Go to Amazon, Best Buy, Costco, Lowes or Home Depot and there are many brands of surveillance systems available for the do-it-yourselfer.

Ezviz (Hikvision) is trying to get a piece of that market, I don't have any issues with it. It's not taking money out of integrator's pockets as the DIY market was never in their pockets to begin with.

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Why hide it then?

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Who says they did? John found it pretty easily. I am not a fan of this by any means, but I don't think they are "hiding" it from me/us. I think they chose a name that the masses will more likely accept. I don't think they care what we think.

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Mark, they are clearly trying to hide it. If they were not, why remove all the Hikvision references that were there before? Why not mention Hikvision in any of the marketing? Shouldn't Hikvision be proud? After all, they continuously tell everyone they are the largest and #1 manufacturer in the world? Why would they not see it as an asset?

As I said in the original post, their upside is clearly to hide this from dealers, hide their cybersecurity flaws, and hide that this is a Chinese partially government owned company.

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Probably because they thought you'd react like this if you ever found out.

Marty, if you're reading this, can you photoshop John into the Scooby Gang and have them pulling off Ezviz's mask to reveal Old Man Hikvision?

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Probably because they thought you'd react like this if you ever found out.

Couldn't they do a better job hiding it, then? I mean it's a totally half-assed attempt.

Were they so enamored with the EZVIZ brand that they had to reuse it?

It would seem they don't value their dealers enough to even lie to them well.

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Yesterday, Hikvision told us they were working on a comment but there's no further communication today, so it's not looking likely that we will hear their take.

One thing I do not understand about 'ezviz' is that it's confusing to spell and tricky because you have to remember which letter is a z or v. Nest, Dropcam, Canary, Simplicam, Ezviz.... That's a problem for a consumer brand.

It may just very well be that they have no experience doing a consumer brand and this is what they get.

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One thing I do not understand about 'ezviz' is that it's confusing to spell and tricky because you have to remember which letter is a z or v.

I had the same problem, til I realized the viz comes from Hikvision, then it was ez to remember. ;)

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...can you photoshop John into the Scooby Gang and have them pulling off Ezviz's mask to reveal Old Man Hikvision?

Shaggy never gets any credit...

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Who says they did?

"They just happen to have the same name..."

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I don't believe they are hiding it, but re-branding for another market segment.

You won't find any Dahua logos on any Q-See equipment or website.

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"You won't find any Dahua logos on any Q-See equipment or website."

That's a false analogy.

Q-See (company name Digital Peripheral Solutions Inc.) is not only a separate company from Dahua but it has been in business for more than a decade with an American female CEO.

Ezviz is just a brand Hikvision created and is pretending to be separate.

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I wasn't implying that Dahua owned Q-See, but as an example that manufacturers re-brand equipment all of the time without any references to the manufacturer. It's not "hiding", it's branding.

As you pointed out, Hikvision also OEM's for ADI and Tri-Ed and I doubt there are any references to Hikvision on those products. I've never used them and can't say for certain.

The only difference is here Hikvision is rebranding it for themselves to play in the DIY marketplace while keeping their integrator level products separated. I don't have an issue with it and I think it's a good play for Hikvision.

I don't see Ezviz as any more of a threat to the integration market than Q-See, Swann, and others have been for quite some time. Ezviz is just another competitor in the low-end DIY surveillance marketplace and nothing more.

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"It's not "hiding", it's branding."

It's both.

In this case, it's bizarro branding. Usually companies use their own brands because they want to hide the true developer so they can associate something that is not theirs with being their own (i.e., Hikvsion becomes ADI W-Box, Hikvision becomes Northern Tri-Ed). In this case, Hikvision is hiding / branding 'away' their own established brand.

"I don't see Ezviz as any more of a threat to the integration market than Q-See, Swann, and others have been for quite some time."

Hikvision is ~40x larger than Q-See or Swann, with resources and ability to price that dwarf anything anyone can else can do.

Even excluding the Ezviz release, Hikvision has already proven to be the biggest threat to the video surveillance market in years, as they are the primary force in driving down both camera pricing and gross profits in the industry.

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Looking at the Ezviz websites: http://www.ezvizlife.com/and https://www.ezviz7.com/ it appears they are more focused on competing against Dropcam and GoPro. I think the "Ezviz" name for this application is much catchier and easier to remember than "Hikvision" and it separates their home DIY product line from their commercial product line. Aside from the IP video surveillance marketplace, I doubt Hikvision has any name recognition with the average consumer looking to put a camera in their house to watch their kids and dogs or recording their mountain biking trips.

I view delivering a sound product at a competitive price as the invisible hand of economics at work, not a threat to a market. Cell phones used to be the size of a brick and prohibitively expensive for most people, now just about every kid on the block has a smart phone. I don't see how is bringing the technology up and the price down for the consumer is a bad thing. A $69 for a residential IP camera is a good thing for the consumer and the market, they were never going to buy (and integrators would never be able to sell) a $700 fixed dome IP camera for this type application.

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"I think the "Ezviz" name for this application is much catchier and easier to remember than "Hikvision"

Ok, but that does not explain why Hikvision has scrubbed out any references to Hikvision for Ezviz. For example, Hikvision has a series brand named 'Turbo HD' but it's 'Hikvision Turbo HD', they don't try to hide that Turbo HD is from Hikvision.

"I doubt Hikvision has any name recognition with the average consumer looking to put a camera in their house to watch their kids and dogs or recording their mountain biking trips."

But Hikvision continues to tell everyone they are the largest video surveillance manufacturer in the world, so why wouldn't they want to validate their new 'company' with that highly relevant fact?

"it appears they are more focused on competing against Dropcam and GoPro"

And yet they have an 'enterprise security' section with examples of retail chain stores and factories, which Dropcam and GoPro have never targeted.

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Maybe using the Ezviz label for this market was taking your advice from another recent IPVM article to differentiate the Hikvision brand from a DIY "budget brand"?

Yes, buried under all of the pictures of egg-shaped cube cameras watching babies, dogs, and old folks there is a section for "enterprise security" which shows small chain stores with 3 cameras and a small office/factory with 7 cameras, which is not what most integrators would consider an Enterprise-level system.

With apologies to Inigo Montoya, "Ezviz, You keep using that word Enterprise. I do not think it means what you think it means.".

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"It's not taking money out of integrator's pockets"

The most popular Hikvision products sold are low end HD cameras and recorders. What is Ezviz selling? Low end HD cameras and recorders.

I do not think this specific move will impact mid to high end integrators but a lot of Hikvision 'integrators' are smaller dealers selling the same type of products.

"DIY camera systems have been on the market for years and yet integrators are still in business."

And 10 years ago, integrators would routinely get SMBs to pay $5,000 - $10,000 for 8 - 16 camera systems. Now, that has moved from integrators to Costco, Amazon, etc. Agree/disagree?

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I agree with the statement that some of that business has moved to the box houses. But, we are talking about a 10 +/- year period. It is unrealistic to think that your business model will be the same 10 years from now that it is today, regardless of what business you are in....;)

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"It is unrealistic to think that your business model will be the same 10 years from now"

I was responding to 5 who said, "It's not taking money out of integrator's pockets as the DIY market was never in their pockets to begin with."

How fast business models changes varies by industry. My underlying point is the more manufacturers sell products for radically less online direct to customers with cloud access / management included, the more competition it is to integrators.

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When Hikvision came to our office they made it very clear they want to get in the enterprise market. Seeing this move how do we know they will not try to go direct to enterprise customers?

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Seeing this move how do we know they will [not] try to go direct to enterprise customers?

They are hooked on growth. If they see money on the table there, it's just a matter of time before they'll lunge for it...

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China looking to reach into more tech savvy consumer homes with another IP device they control? Dealers selling SMB not enough? I need to tighten up my tin foil hat too, they're getting closer to my home.

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I wonder what this is going to do to their large distributors? (like Supercircuits). Are they really convinced that they will sell that much directly that they are willing to basically destroy their own distribution base to do it?

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I'm a fan of the Large Distro's Dying frankly... they add what, 50%+ markup for what?

I have no issue with cutting out the middle man, too many people add $$$ and offering next to Zero Benefit.

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"they add what, 50%+ markup for what?"

Most large distributors wish they added 50%+ markup. Market is too competitive for that.

"too many people add $$$ and offering next to Zero Benefit."

That's what some manufacturers say about integrators... ;)

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Distro's here in AU are known to do that and more, you guys over in the US have so much better pricing on just about anything electronic we're quite Jealous.

Integrators, by my definition are the guy that go and bolt the cam's up, install the NVR's, run the cable, adjust everything, do the training, not sure what the Manufacs are expecting to happen without people doing this?

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Yes, Australia is a peculiar market, pricing is generally way higher than North America or Europe.

As for the integrators part, there's some within manufacturers that see the average integrator as little more than a cable puller and box mounter who wants to markup their products 50% for the privilege.

If that market continues to get more brutal, I would not be surprised to see manufacturers look more to run around end users. On a more sophisticated level, that's one of the aims of Tyco Security Products, the manufacturer, working with their corporate sibling, Tyco IS, the integrator. And, yes, Tyco IS uses non TSP products, but Tyco the corporation sees the financial benefits of incentizing end to end Tyco jobs.

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I would not disagree with Manufac's going direct to the "End User" though if they do, they will end up having a point of contact in the end user organization that becomes the integrator.

if the Manufacs do this however they are going to have to put up with the "learning" questions from the organisation, that or the Manufac will need to start employing their own internal intergrator arm, which they would then have to charge for, wonder how that would work for them Financially.

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Many manufacturers say they already do that. That they are intimately involved in a lot of jobs, helping with the design, helping with the commissioning, etc.

I am sure it happens, though what percentage is unclear. And anyone who needs the manufacturer to be that heavily involved is not much of an integrator.

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this is where it gets a bit messy, many people are using the hik/dahua stuff with other software, the software that people are paying good money for and paying for the support, so these organisations should not get getting too upset and getting the calls (Eg Milestone)

I agree that Intergrators who involve the manufac (specifically hardware only manufac) are probably not experienced enough with their job, if you are going to be selling something you better know it bloody well before attempting to sell it to someone else, if you don't it does not take long for most end users to figure this out

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We are a small security company and have used an OEM Hikivision product for the past 2 years with virtually no call backs. Overall I have been pretty impressed with the product and it serves our market well as we do mostly residential and small business. We deal with the people that compare with Costco etc. but we keep it simple.. we only install our product so if you want to buy direct you will need to install yourself. We manage all of our systems and require all our customers to change their passwords. We also keep firmware up to date on all of our machines as part of a service agreement.

I don't know if this will make that big of an impact as there are already numerous low cost systems out there. There will always be people that cannot and will not install their own systems. We fill this void with professional installations and service if necessary.

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Update: By contrast, in China, Ezviz is clearly marketed as a Hikvision brand, not an independent company. There, they sell many different types of cameras and alarm systems as well.

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Ezviz China even makes routers, with capabilities unheard of in the West. ;)

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Golden Opportunity for Avigilon, and other North American made products to widen their distribution on the heels of these recent events.

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There's definitely an opportunity for the larger Western brands but they need to have low to mid tier cameras at a much smaller differential to Hikvision. They can charge more but not 2x. Hikvision has made entry level professional $100 MP cameras 'normal', which means Western companies need to get to ~$150 range to be in striking difference.

For example, we see Samsung doing quite well competing back against Hikvision and that's because they got tough countering Hikvision with Wisenet III and Wisenet Lite.

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To date I have seen Hikvision products under these names: Alibi, LTS, WBox, Honeywell, and a few others. I have personally installed and become very familiar with Alibi and LTS. These products work well and like a work horse. I have experienced no problems with them.

The best part of having all these brands under one manufacturer, is the fact that they all work well together, and the interfaces are all generally the same with some minor changes.

The Alibi version has great price points and excellent customer service for support. The LTS version is similar to Alibi's price point, but generally have more available features. LTS also has good support services. Both Alibi and LTS offer 3-year warranties. WBox is nice in the fact that you can walk into a physical location and aquire the product with a 5-year warranty touting an over the counter, no questions asked exchange. Unfortunately, WBox support staff at those locations dont generally have knowledge of the products they offer.

All in all, I'm excited to see what 2016 has to offer us!

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You want to know how hikvision can do this low price ?

Every 100 USD of camera they chip out of china, they receive 17 USD from chineese gov. Its the same for all the CCTV chineese manufacturer.

China DUMP the CCTV market, even they signed an agreement at World Trade Organization some years ago. In Europe, all the CCTV resellers suffers and fire people, because of CCTV war price and chineese dumping.

Its time now for political to do high taxes and regulate all of this.

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$18 pales in comparison to the Four figures that other manufac's have been charging for the same thing... other countries have massive subsidies on their own industries, this is nothing new..

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"other countries have massive subsidies on their own industries, this is nothing new.."

Michael, what countries specifically are subsidizing video surveillance manufacturers?

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I said Industries, not Video Surveillance specifically, Europe has massive subsidies for farmers, Australia gives massive hand outs to a whole heap of local industries (at the moment the steel industry has some huge ones, Mining has had billions

China just happens to have a pretty massive Electronics industry, so much like the EU considers themselves big on the Farming front(I guess) and thus subsidize it, I guess AU though that subsidizing the Miners who where already making billions, was a good idea

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China. Hikvision is the perfect example.

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I think you are referring to the VAT (value added tax) refund that they receive on exports. China has a VAT rate of 17% and the Chinese govt receives VAT upfront for every camera sold, but refunds the VAT when the cameras are exported. They're still paying normal corporate taxes in China (and yes it's probably lower than USA/Sweden/Denmark if you simply look at the headline tax rate, but ask anyone who started a factory in China and you'll hear about the miscellaneous local taxes that they pay on top of the corporate tax).

In fact, companies who OEM Chinese products (and I believe Japanese/Korean/Thailand manufactured products too, given the similar export oriented trade policies) should also be enjoying the lower prices due to VAT refund.

I believe they still pay the local sales tax (USA) or VAT/GST when they sell their goods in the respective markets. Isn't that common practice in the world where you only pay local consumption tax where you sell your goods? Can any manufacturers share their experience? Are your exported goods more expensive because they come with VAT/GST included?

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I think you are referring to the VAT

if you are replying to my post, no I'm not, these government subsidies I'm referring to are direct "here have this cash" arrangements, which are on top of Tax Deductions

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no, its a 17% tax back for equipements sold outside of china. Even CCTV shenzhen company receive this money from china gov.

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Is that 18% tax back in response to any input tariffs in the US?

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No, its a 17% tax back for equipements sold outside of china. Even CCTV shenzhen company receive this money from china gov.

Perhaps you were replying to the wrong person? I am not referring to sales tax reimbursement. I was referring to:

The National Development and Reform Commission (NDRC) has disbursed RMB 660 million ($103.6 million) to 5 cities piloting programs encouraging the cloud computing industry...

According to the report, UFIDA Software Co. Ltd. (600588), Hangzhou Hikvision Digital Technology Co. Ltd. (002415) and ZTE Corp. (000063) were permitted to cooperate in related projects with the companies which obtained the subsidies.

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We can say that, yes. Im leaving In Europ; Input Tax for IP Cameras are 4.9%.

I guess its a way for china gov to fight with occidental countries without guns.

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It's a shame that if we don't look out for American companies in our industry the way that China does for theirs.

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Are you seriously think that these devices will kill the professional CCTV market, which built for security purposes? Look on those cams, they are toys, and this is obvious. If somebody seriously think to sacure his property with this will burn, and then will ask a professional.

This is for fun, this is for baby/kid/dog monitoring, and for that purpose is better than any high grade security product. Do the same with AXIS/Milestone at home (with two way audio support and a friendly mobile client). Guys, which one of you have at home an Avigilon, Genetech, Indigovision, or similar level security?

So this won't affect professional business, as I never worked for somebody who is playing with the thoughts to install this in an "industrial" environment.

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This is for fun, this is for baby/kid/dog monitoring...

If you have a big family maybe...

Systems like this get sold into gas stations and convience stores everyday, no?

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I don't see this tendency. Really. And I'm living in a "poor" Central Eastern European country. I have never seen such equipments in a petrol station or even in a small store. In those areas Hikvision and Dahua already stepped in with their mid range offer.

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Attila, In the US, kits like that are used all the time in SMB. Walk into any small store and they will have something like that (whether it is a Dahua OEM, a Hik OEM, etc.).

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When I was in the US, I didn't feel like that. But I accept your view, you live there, I was just a on business trip twice around 20 days in total.

BTW this statement is very surprising to me. Here I don't feel/experience this, and your country is much wealthier than mine.

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In the US, security/surveillance is not a big concern to most small businesses, so they like to have video but it's not critical.

And there are so many low cost kits available at big box stores (lots of them shop at Costco or Sam's club) or online (Amazon is the big one), that they typically just buy those kits.

Attila, in your country, are there many local stores selling surveillance kits?

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