Hikvision Launches Direct End User Sales

Author: IPVM, Published on Nov 18, 2015

Hikvision won't 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.

Introducing Ezviz

Hikvision has launched a new company this July, named Ezviz, as shown by California state records:

Ezviz is selling individual IP cameras as well as 4, 8, and 16 channel kits. They are already being sold at Sam's Club, Newegg and, as the image below shows, at Amazon:

Hikvision / Ezviz is targeting everything from consumers to 'enterprise security' with the new offering, including, as they describe it, chain stores and factories:

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

The most attractive option immediately will be the Dropcam alternative, that is being sold on Amazon for $69.99 + one year of free 7 day storage (which is radically less than Dropcam and every other cloud cam offering).

What Ezviz Used to Be

If you follow Hikvision, you may recall Ezviz meaning something else previously. Indeed, up until the last few months, Ezviz was Hikision's brand / name for their own cloud access service, as this 2014 video clearly shows:

However, Hikvision has now shifted Ezviz to something different.

Hiding Hikvision

Generally, Hikvision is quick to tout their market position and successes, but with the new 'company' they have buried their name and association. Ezviz is portrayed as a completely separate, independent company. Earlier in 2015, the Ezviz website prominently displayed Hikvision's company info at the bottom of every page and on the terms of service. However, now, Hikvision has removed those references. 

There is no Hikvision references or admission in Ezviz's company announcement, which proclaims:

"EZVIZ, a California-based Wi-Fi cloud camera and video surveillance solutions manufacturer...  The company manufacturers Wi-Fi cloud cameras and video surveillance kits, with the single mission to make great quality video easy for everyone."

Obviously, Ezviz manufactures nothing, outside of cover for Hikvision. They are, essentially, OEMing themselves.

However, Ezviz's managing director cited in the announcement is a Hikvision North American sales employee (Albert Lin) who was transferred over.

And on the products themselves, Hikvision hides its ownership:

However, looking up the FCC ID on the Ezviz camera (2ADTD-CSC) shows that the product is registered to Hikvision, not Ezviz.

In China, No Hiding

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.

Benefits of Hiding

There are 3 main benefits for Hikvision from hiding their involvement:

  • Minimize Hikvision dealer anger. If Hikvision dealers do not know, they cannot be concerned about the conflict. Equally important, if Hikvision's dealer's customer see Ezviz as a different company, they cannot price check / bargain for Ezviz products on Amazon, etc.
  • Obscure Cybersecurity problems. Given Hikvision's repeated hacking problems, many buyers, especially on the consumer side, would have reservations hosting their video with Hikvision.
  • Americanize vs Chinese: Instead of having buyers worry why they are buying from a company whose largest shareholder is a Chinese government owned entity, Hikvision can make it appear that they are just another hi tech California company.

Why Selling Direct

The direct sales end user market is already quite big and growing. For example, Swann, one of the specialists in this segment, does over $100 million annual revenue. Amazon certainly sells hundreds of millions of dollars of video surveillance systems. It would not surprise us if Amazon sells more video surveillance than ADI. And as Hikvision continues to drive down unit pricing, it becomes even more attractive for consumers and businesses to simply buy $69 cameras or ~$300 kits direct from Hikvision.

Conflict and Future

There has been short term elation that Hikvision has helped early adopter dealers make money over the past year or two, benefiting from much lower prices. However, this move shows that Hikvision is determined and organized to saturate the market and maximize their total unit sales as quickly as possible. 

How Hikvision makes profits with their approach (e.g., now selling cloud IP cameras direct, with phone support and free one year storage for $69.99) is a mystery to us. But these moves, if continued, will hurt integrators and crush many of their manufacturer competitors as ubiquitous cheap video surveillance systems become the norm.

Vote

UPDATE - Hikvision Response

Hikvision Responds to Ezviz Direct Sales + Changes Marketing

9 reports cite this report:

Hikvision Cloud Service (Ezviz / HikConnect) Tested on Aug 05, 2016
Hikvision has built out cloud services for their cameras / products, adding cloud access and recording. Hikvision markets cloud under Ezviz (not...
Hikvision (Stops) Lying About Ezviz Security on Mar 18, 2016
Hikvision promoted the security of their directly sold Ezviz consumer line to Americans in a March 9, 2016 release. False It featured this false...
Camera Doorbell Startup Ring Now With ~$100 Million Funding on Mar 16, 2016
Smart doorbell startup Ring has raised an additional USD$61M in funding. Ring has also announced a "Pro" doorbell, which is an enhanced product...
Mega Chinese Electronics Manufactuer Xiaomi Yi Camera Tested on Feb 05, 2016
Xiaomi's revenue is 4 to 5 times larger than Hikvision's. Only in business for 5 years, Xiaomi has rocketed to be one of the world's most...
Walmart Momentum IP Camera Tested on Jan 04, 2016
A 'Dropcam' for ~$30? Walmart does super low cost and they are now bringing it to IP cameras, with a new cloud camera for an almost impossible to...
Hikvision Ezviz Tested on Dec 28, 2015
Last month, Hikvision Launched Direct End User Sales with their Ezviz line, sold through online and big box channels direct to consumers. We...
An Inside Look Into Dahua on Dec 16, 2015
Dahua is the 'other' billion dollar plus Chinese manufacturer. Large in its own right, just not as huge or as well connected with the Chinese...
Hikvision Responds to Ezviz Direct Sales + Changes Marketing on Dec 02, 2015
Hikvision has responded to IPVM's concerns about their new direct sales company Ezviz, has also changed their marketing and sent a letter to their...
Hikvision Direct Mega Deals Start on Nov 30, 2015
Merry Christmas... from China. Earlier this month, IPVM exposed how Hikvision had tried to hide its new direct end user sales offering /...
Comments (114): PRO Members only. Login. or Join.

Related Reports on Sales

Hikvision Europe Cutting Out Unauthorized End User Sales on Aug 15, 2017
The days of anyone buying Hikvision from anywhere off the Internet are numbered, at least in Europe, if Hikvision's plan comes to fruition. In...
Avigilon Profits Surge, Stock Jumps (Q2 2017) on Aug 10, 2017
Avigilon said earlier this year they would shift their strategy to maximizing profits. Now, they are delivering it and the stock market is...
Vivotek Acquisition Offer From Delta on Aug 10, 2017
One of the largest remaining independent video surveillance manufacturers has received an offer to become majority owned by Delta Group, a Taiwan...
Hikvision Releases Network Cabling on Aug 04, 2017
Hikvision's expansion continues. From cameras to analytics to thermal to intrusion to access to... network cabling. Hikvision explained: A...
Toshiba Shutting Down Security Division on Aug 03, 2017
Toshiba is shutting down their 'Security Division' business including their video surveillance product offering. This is certainly part of a...
Axis Product Shortage Confirmed / Normalize This Fall on Aug 01, 2017
Friends and foes of Axis, over the past few months, have privately been commenting on Axis shipping delays. Axis has confirmed this,...
Competing Against Tyco IS / JCI on Jul 28, 2017
Mega-integrator Tyco Integrated Security has gotten even bigger with the 2016 merger with Johnson Controls. 110+ integrators told us what they...
Anixter - Falling Video Prices on Jul 26, 2017
Falling video prices are such a concern that it has become a notable topic for Anixter's financial results and Anixter's executives. In this...
Hikvision Distributor Says Hikvision "Top Rated Yet Most Hated" on Jul 12, 2017
The CEO of 2M Solutions, a distributor selling Hikvision cameras under their own as well as Hikvision's brand has publicly declared Hikvision to be...
Best Manufacturer Perks on Jul 07, 2017
A decade ago, the best manufacturer perk was likely a trip on the Pelco jet: But the Pelco jet is long, long, long gone. What types of perks...

Most Recent Industry Reports

Final Day Save $50 - IP Networking Course September 2017 on Aug 17, 2017
Today, Thursday, August 17th is the last day to save $50 on the September IP Networking Course. This is the only networking course designed...
Knightscope Raises $10 Million With $3,320 Average Per Investor on Aug 17, 2017
Congrats to Knightscope. And condolences to their legion of little investors. Knightscope has disclosed they have raised $10+ million from their...
Axis and Arecont Legal Conflict Over Multi-Imager Cameras on Aug 17, 2017
Arecont threatened Axis. Axis has responded by moving to invalidate an Arecont patent. It is an important contest. Multi-imagers are Arecont's...
Directory Of Consumer Security Cameras on Aug 16, 2017
The consumer camera segment continues to grow, with new startups and models from existing players released seemingly every month. In this report we...
Cat 5e vs Cat 6 vs Cat 6a Network Cable Usage Statistics on Aug 16, 2017
Cat 5e? Cat 6? Cat 6a? What do integrators use in practice, today? 140+ integrators told IPVM. Here are the results: For those who want to...
Hikvision Responds To Cracked Security Codes on Aug 15, 2017
Hikvision has responded to IPVM's report on Hikvision's security code being cracked, both with a 2 page update to dealers and communication...
Stolen Video NVR / DVR Statistics on Aug 15, 2017
"But what happens if someone steals my recorder?" Anyone who has done more than a handful of jobs has probably heard this question several times....
Hikvision Europe Cutting Out Unauthorized End User Sales on Aug 15, 2017
The days of anyone buying Hikvision from anywhere off the Internet are numbered, at least in Europe, if Hikvision's plan comes to fruition. In...
Axis Laser Focus PTZ Tested on Aug 14, 2017
Axis has been touting its new Q6155-E laser focus PTZ as 'always in focus' and 'always in color'. Does it really deliver? We bought and tested...
Vulnerability Directory For Access Control Cards on Aug 14, 2017
Knowing which access credentials are insecure can be unclear, especially because most look and feel the same. Even the most insecure 125 kHz types...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact