Hikvision Responds to Ezviz Direct Sales + Changes Marketing

Author: John Honovich, Published 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 dealers.

In this note, we examine their response, the dealer letter, and break down their changes.

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Comments (12)

Was the statement signed Hikvision, or Albert Lin?

Technically it was Albert Lin, General Manager, Ezviz. I updated it above. It's tomato / tomato as they are, by their own admission, parts of one company.

Whatever the fallout with the channel ultimately will be, they could have sidestepped a good deal of ill will by "getting out in front" of this issue.

Even after your article it took them a week to respond with what we all knew they were going to say.

Well, almost. Having them pull back on some of the corporate marketing was unexpected and no doubt a little humling for GM Al Lin who is a little less 'All in' now.

To be clear on the timing, before I released the first article, I gave Hikvision 2 days notice and request for comment. No comment was provided then.

Albert responded on Nov. 20th, 2 days after the article was published, I immediately asked the follow up questions, followed up 3 times but he did not respond until today.

My gut feel is that removing the marketing material is to make their partners less aggrevated but that they clearly have ambitions to sell direct to 'enterprise security' as well. I don't think that of Hikvision USA specifically, but Hikvision corporate I suspect has greater intentions.

in all fairness, products like the S1, which is already launched in Italty, has nothing to do with CCTV. I think in time as their portfolio grows the link to Hik CCTV will become less obvious.

here is the S1:

I agree sport cameras are not CCTV. However, if they also continue to sell 4, 8, and 16 channel 1080p video surveillance systems, then it will be hard to understand how it does not conflict with their existing business / dealers.

i can see your point John, however there is already an offer on the table for DIY.

the only reason it will conflict business is that the quality could me better than current DIY products.

I can understand hikvision going into 'other' markets as the sportscam and DIY.

For real security products an installer can not be replaced i think

John,

What are your thoughts on how this compares to Samsung. Samsung has a commercial security line and a DIY line. The DVR interface is nearly identical on both. As a systems integrator that focuses exclusively on commercial, I've been more than happy to refer residential customers to the DIY kits knowing the product quality will be decent.

In terms of Branding, they are both Samsung. In terms of channel, the DIY has it's own website and is sold web and retail.

Maybe they just don't have enough market share to matter?

Brad, excellent point / question.

The main difference is that Hikvision is the 'king' of the low end. Yes, they obviously want to move up market but Hikvision's core market in the US right now are 16 and under installs, with their own recorders. Because of that, Hikvision's Ezviz offering directly competes with that (i.e., 4, 8 and 16 camera 1080p kits).

Samsung, by contrast, has much more of a presence in the medium to high end of the market, so the average Samsung customer (e.g, WiseNet III buyer) does not overlap with the DIY / Amazon buyer.

Related: Favorite SMB Video Surveillance Manufacturers

...the average Samsung customer (e.g, WiseNet III buyer) does not overlap with the DIY / Amazon buyer.

Indeed, couldn't you say that in some ways the opposite has happened with Techwin by recently creating the Wisenet lite offering?

What is the purpose of the Wisenet Lite line if not to give integrators a way to compete with the Hikua and DIY options out there?

Yes, I think Lite helps them compete downmarket and for more price sensitive scenarios in the high to mid market.

However, looking at what smaller dealers focusing on small projects use, Hikvision is the dominant force. As such, it has much bigger potential impact.

HI John

I dont believe it is Hikvision alone, in South Africa ZTE's surveillance company ZNV has launched and although have appointed distributors are marketing directly to the larger enterprises ,Hikvision has an immense footprint in South Africa and have an office here as well, although not dealing directly that I am aware of, but for how long? If a large financial institution or government organization goes to tender I guarantee they will be fishing, as no manufacturer will shy away from an order for thousands of cameras

To put it plainly the model is to penetrate the market through dealers gain market share, then pull in the rains and go direct and let the chips fall where they may and the dealer networks based on the market demand and low pricing have no choice but to fall in with the market

Where does this leave the other manufacturers will they not at some stage have to adopt a similar strategy to compete or face massive market share reductions to the Chinese brands

Where does this leave the SI in the future ?

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