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

Anixter CEO Admits Price Deflation and Non-Exclusive Integrator Sales on Apr 26, 2017
Anixter's CEO has admitted to (1) price deflation impacting IP camera sales and (2) not always being 'exclusive' with security integrators. In...
Axis Posts Strong Q1 2017 Financial Results on Apr 24, 2017
Axis posted strong numbers for Q1 2017, after having some challenges in 2016 (Q1 2016, Q3 2016). Inventory levels and overall spending show...
Dell EMC Surveillance Division Profile on Apr 20, 2017
With revenue growth from traditional IT customers slowing, Dell has set a focus on the security industry as a market where the company can offer...
Top Selling Video Surveillance Distributors on Apr 17, 2017
These are the top selling video surveillance distributors in North America, as reported by 150 integrator survey respondents. In this report, we...
Hide or Show Models on Quotes - Integrator Statistics on Apr 13, 2017
Customers like to know what they are buying, but they might use an integrator's detailed quote to shop the system designed. This is a challenge...
Hikvision Major OEM LTS Now Distributing Hikvision on Apr 12, 2017
In a rare move, one of Hikvision's top North American OEMs, LTS, has become a Hikvision distributor, as demonstrated in LTS' ISC West booth: In...
Best and Worst - ISC West 2017 Show Report on Apr 10, 2017
IPVM went to Las Vegas, examining what vendors are showcasing and what is new. Attendance was up, according to the show, and was certainly well...
2Gig Intrusion Megatest (GC2 & GC3 Panels Tested) on Mar 28, 2017
2Gig is one of the most widely used intrusion systems, with two product lines that are the main offering of many alarm companies, huge national...
Anixter Favorability Results on Mar 28, 2017
Anixter's direct sales and integrator anger about it has been in the news recently: Anixter / Bosch Sells Direct to Amazon Anixter Touts...
Dahua Distributor Bad Breakup on Mar 27, 2017
A Dahua distributor in Europe claims that Dahua took over his top customers, revoked his distributorship status, and left him with a large amount...

Most Recent Industry Reports

Instant Cloud For Hikvision - Manything on Apr 28, 2017
One ISC West exhibitor had a very specific and clear pitch - cloud for Hikvision: In this note, we examine their offering, key differentiators,...
Milestone GPU Enhanced VMD Tested on Apr 28, 2017
In their 2017 XProtect release, Milestone announced support for hardware accelerated video motion detection, touting a 2X increase in server...
Burglar Alarm Zoning Guide on Apr 28, 2017
The function of an alarm panel is to gather information from sensors and respond to this information by triggering actions. While it is possible to...
Avigilon Discontinuing Rialto Analytics Line on Apr 27, 2017
Avigilon is informing dealers/partners that the legacy VideoIQ Rialto products have been discontinued, recommending the newer ACC ES Analytics...
A Marketing Home Run For Knightscope - Man Attacks Robot on Apr 27, 2017
We criticize Knightscope regularly - their lack of revenue, their trying to fool mom 'n pop investors, their associating themselves with a clueless...
The World's First Fashion IP Camera From Amazon on Apr 27, 2017
Some analytics cameras can tell you if a person is jumping a fence, or loitering in a secure area, but none of them can tell you if the person...
Last Day - IP Networking Course May 2017 on Apr 26, 2017
Today is the last day to register for the May IP Networking Course. This is the only networking course designed specifically for video...
Hikvision EZVIZ Amazon Scam Revealed on Apr 26, 2017
Hikvision is violating US Federal Trade Commission guidelines and Amazon rules with a "Honest" Review Program scheme that provides gift cards to...
Anixter CEO Admits Price Deflation and Non-Exclusive Integrator Sales on Apr 26, 2017
Anixter's CEO has admitted to (1) price deflation impacting IP camera sales and (2) not always being 'exclusive' with security integrators. In...
Xandem Next Gen Intrusion Tested on Apr 26, 2017
Xandem's "full coverage motion tracking technology" is unlike any intrusion technology we have seen. We bought their new system and tested it...

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