Hualai, Major Supplier to Wyze and More, Profiled
Hualai has become one of PRC China's largest and fastest-growing security manufacturers, most notably through supplying Wyze. But how does Hualai position itself?
This report examines the company's position based on an interview with Hualai's General Manager of Global Enterprise Product & Service Solutions Business Unit, Foresto Zhang.
Executive *******
****** ** ** *** ******** ** "smart ********," *** *******," *** "***** lighting" ******** ***** ** *******, ***, China, ********* $*** - $*** ******* USD ** ****** ******* ******* ******* 7 -* ******* ***** ** ******* a ****, *** ** *** **** growing ** **%—**% ***** **** *** the **** **** *****, *** ******* said. ** **** ***** **** ** now *** ~*** ********* ****** ******* cities ** *** *****. **** * revenue ***********, ****** ** ****** **** PRC ***** ***/*** ************ **** ****************, *** **** **** **** $*** million ** ****** *****, ** **** as******'* *********, ***** ******* ** ~$** *******.
***** **** *** **** *** ** the **** ********* ******* *** ****** and * **** ****** ** *** growth ** *** ***** **** ***** the *******'* ****** ** ****, ****** emphasizes *** ********** ** ************ *** client **** *** ***, ** *** of ****, ** *** ********* ***** channels ***** ******* ********* *** ********* companies ** *** **, *** ****** taking ** **% ** ******'* *****. Nevertheless, ********* ** ****** *******, **** of ******'* ********* *** ***** *** Wyze ************. ****** *** ***** *** in **** ******** *******, ****** **** ODMs *** ******, * *********** ******* to *** ************ **** **** ** the **.
****** **** *** *** *** ********* but ***** **** **** ********** ********* in *** *** ***** *** *** in *******. *** ** *** **** in *** ***** *********** ***% *** Hualai. *** ******* **** *** ***** add ** ** ******* *******.
** * **** *** ********, ****** said ** **** *** ****** ** sell ******* ******** ** *** *********** future ** ** ** * "******* company" **** ** ********* ************ *** primarily ******* ** ******** ***********.
****** ** ******* **% - **% in ******* * **** ** *** next * - ** *****, ****** said **'* ********* ** ***** ** because *** ******* ******* *** "**** stable," ***** ** * ************ ****** than **** *** ********* **** **** their *******. *** ******* **** ********* goals ** ********* *** ******* *******, such ** ******** **************** ** *** cameras ** ***** **********, *******, *** RF ***** ***************. ***********, **** ****** rate ******** **** ******** $***+ ******* in * *****, ***** ** ********, though, ** ********** **** ***** **** show, ***** ** *** **** ** major ********* *********.
Value-Add ** **** *** ******** ********
****** *** ******* ** *******, *** China, ** ****, *** ***** ********* ****** ** ****. *** *******'* ******* ******* *****, elaborated ** *** ** ******** ** an *** ******** *** *** ** creates *****-*** ** ******** ******, ********, and ********* ***** ***********:
*** ******** ***** ******* ** *** ODM ********. ** ***** *** ********** design ** *** *********. ** **** the ******** ****, ** ***** ** able ** ** *** *** (******* circuit *****) ****** *** **** ** the **** ******** *** *** ********.
** **** **** * ******** **** [focuses **] *** ********. ** ***** integrate *** ******** ** ******* ** the ********.
** **** **** * **** ** engineers ** *** *****. **** ** a ****** *** * ** *** have **** *** ** *** **** the ******** *******, ** ***** ***** and ****** *** ******** ** ***** country, **** ********* ** *****, ***** in ***** *********, ** ** * little *** *********** ** ******, ***** engineers.
***** ****** *********** ** *** ******** design, ** **** *** *** *** operate *** *** ************* ********** *** rather ******** **** *** ********* ****** PRC ***** *** ******* ** ******* the ********, ***** ****:
** ******* **** **** ********* ** China *** **** ******* *** ********* in ******* ** ******* *** ******* of **** ****** ** *******.
*** **** ************** **** ** ** develop *** ******* ******. ** ** not **** *** ** ****** *** factory, *** ** **** * **** of ******* ******** **** ***** ** able ** **** ****** *** *******. We **** *** ********* ** ***** that ***% ******* *** **.
*** ******** ******** ** ******* **********, Zhang ******* ********* ******'* **** ***** the ****** ***** ** * ******** and ******** ********:
** ********** *** ** ***. ** are * ******* *** ******* ********. Hardware ** **** ** *** ******** in. ** ********** *** ** **** up **** * ******** ********. ** have *** **** **** ** ** analysis *** * *** ** **** from *** **********, *******, ** *****, and ******* ************.
** **** **** * ******** **** that ***** ******* ***** ***. ** provide *** ***** ******** ** *** Camera; ** **** *** ***** ***. We ***** ******* ********** ******** ** make *** ******** ** **** ** the ********. **** ** **** ******* service ** ********* *******' ************, ***** is **** ** *** ******* **.
Hualai's ****** **********
***** **** **** ****** *** **** growing ** **% - **% ******* 2020 *** ****, ** *** **** annual ***** **** ~$*** *******, *** its ******* ****** ***** **** $*** - $*** *******, ********** * **** of **%.
Product *******
****** ******* *** ******** **** ***** categories: ***** ******** ********, *** *******, and ***** ******** ********:
** **** ***** ******* **********. *** first ** ***** ******** ******** **** indoor *** ******* *********, *********, *** floodlight ****, *** *** ****** ******** is *** ******* **** **** *******, window & **** *******, **** *******, and *** ***** ***** *******.
*** ***** ******** ** ***** ******** products. ** **** ***** *****, ***** bulbs, ***** *******, *** **** ***** kinds ** ***** ******** ********.
****** ********** ** *** ******** ** *** website. *** ******* ****** ** *********** since *** ******* ** ** *** provider *** **** *** **** *** customers ********:
"We *** * ******* *******": *********. **** ***
** * **** *** ********, ***** said ****** *** ** ********** ** building *** *** ***** ** ***, even ****** **** ***** *** ***** ODM *********, **** **********, *** *** ****** ** ******* brand *********** ************. ****** ********* **** **** ** because ** *** ** ********* ************* and **** ** **** *** **** to ******** **** *** *******. ****, it ***** *** ******* ***** *** own ***** ************ *******, ****** ********, Hualai *** * ***** ******** *** customer, ******.
** ******* ** ********* **** ****** branding, ***** **** ****** ***** ****** a "******* *******" ******** ** ******* development:
****** ** * ******* *** ******* provider. ** ** *** **** * brand ****, *** *** *** ***** is ** *** ******** ** *** software. **** *** ******** ***********, ** focus ** **********, *******, ** *****, and *******. ** ***** * *** of **** *** ****** ** ****, refine *** ******* ***** ********.
********* *** ********* ****, **% ** Hualai's *** ********* *** ********* ****** the ******** **** (~**), *** ****, cloud ****, *** ******* **********, ***** said. **** ** ******'* ***** ** in *******, *** *****, *** ** also *** **** ********* ** ********, PRC *****, ***** *** ** *** company's ********* ********* ** *******, ***** added.
Growing **** ****, *** "*********" ***** ************* ******
** *** **** **** (*** **** - *** ****), **** *******, *** ***** ******** *** *** from ****, *** *** ******* ********* ** Hualai ** *** **, ********* ** import ********:
(*****: ****** ******* *** ** **********, but **** *** * **** ********* of ************* ******** ************ ** *** big *******.)
****** ******** ** ******* *** ***** number/percentage ** *** ******* ****** **** Wyze, *** ***** ********** **** **** is * "**** ********* ******" *** expanded ** *** *** *** **** grown ******** ***** ****:
* *** *** **** **** ** a **** ********* ****** *** **. Back ** ****, **** ****** ******* to ** ******, *** *** *** first ******** ******. **'** **** ******* very ******** *** **** ****** *** more **** *** ***** *******.
* ***** *** **** ** *** very ********* ****** **** *** *****. We **** ****** ******** *** ******* years.We ***** **** **** *****. ** **** *** ******** *** *** **** [********]. They also made a lot of contributions to us coming from the product aspect.
**** **** ** ******* ********* **** each ***** *** ** **** ********* products *** ********.
*******, ****** ****** *** **** *** important ******** ** **** *****, ******* knows *** ******* ** ***** ************* with ***** *******/*********. ****** **** **** it **** *** **** ** **** has ***** ********* ** *** **** may **.
Hualai's **** ** *** ************* *** *********** *********
********* *** *** ******** *****, ***** commented **** ***** *** ********* *** better *** ************ ***** ****** ****, the ******* ********* *** **** ****** off ************ ***** ******** ********. ** elaborated ** *** ************** **** ******* clients **** **** ******* ***** ********* in ********:
*** *** ****** ** *** **, of ******, **** ****** **** ** only *** [********] ** *****. **** need ***** *******.
****** ** *** ******* ******. ** all **** **** *** ******** **** time *** ****** [** *******]. ** takes ****** ***** ** ***** ****** to **** ** **** *** *******, and ***** ******* *** ******* *********. Sometimes, *** ****** ***** ***** ** four ******** ** ********, *** *** one [***] *******, ** ** * little *** ** * *********. ****'* where **** **** ** **** ***** mind ** **** **** ********* ********* to **** *** **** ** **** for ****.
*** **, **'* *** ****. ** need ** **** ** *** **** what ** *** **** *** **. I ** *** *** * *************. It's * ****** ***** ** ***********.
**** ** *** ****** ** ********* in ********** *** ******** **** ****** Wyze, **** ****** **** *** **** an "********* ******" ********** *** *******'* history. ** *** ***** ****, ** is **** ******** **** **** ***** seek ***** ********* ** ** ******* more ******.
Global ********** ****** ******** ** *** ** ****
********* *** "********* ********" ****, ** clients ******* *** **% - **% of ******'* ***** *****, ***** ****, adding **** **** ** *** **** because *** *** ******** ***** ******* in *** ** *** **** *** brands *** ***** **-***** ********:
*** *** ******** ******* ** *** US *******, ** ****** **** - 2011. ** *** **** ******* ** the ** ****** *** **** **** ten *****. *****, ** *** ** camera ********, ****** **% ** *** brands *** **** *** **. ****, Ring, *** **** *** *** **** the **. ** *** **** *** brands **** ******, ****'* *** **** of *** ***** ******* *** **** the **.
** *** ** **** *** ****, import ******* ****** **** ***** ** importers ** ****** ******* *** *********:
- ***** **** **** - **** **** Limited
- ***** ******** ******* & **-** ******** Cameras - *****
- ******* - *** ******** *** ******* For **** & ****. ***** *****-**
- ***** | ***** **** ****** ** Camera
- *** **** **** ******** ******* - Scout *****
- *** ***** ***
- ***** *** ******* ** ***
- ***** *********** ***
******'* ******-******* ****** ** ******, ******** by ******* ***** ******* *******, ***** said:
***** **** *** ** *** ******, we **** [****] ** *****, *********, India, *** ********* ** ****.
PRC ***** ******** ****** - ** (******)
******* ** *** ******** *** ********, Hualai *** **** *** ******** ********, Xiaomi. ******'* ************ **** ****** ** similar ** *** ************ **** ****, Zhang *********. ** **** ***** **** context ***** *** ****** ********** ** its****** ********:
** **** **** ** **** ******* on *** ****** ***** ** *** China ******. **'* **** ******** **** and ********* **** ****. *** ******* is ****, *** *** ************* ** nice ****** *** ******** ***** ***** to ******.
Business ***** ** ******* ** *******/********* *********
***** **** ** ***** ******'* *** importer *** ***** ****** ** * lot, ***** **** ****** *** **** developed * ******** **** ***** ******* companies, ********* *********, ***** ********* (********* providers), *** ******** ********* (***********)*. **** approach, ** * ***, ******* * special ******* ******** ****** ** ***** end ***** (*** *********** ******) ********, bypassing ******* *** *********. **** ******** has ************ ********** **** ******* ******* ********* ******* ******* *********'* ******** ******** base. *******, ** ** ***** ********* in ********** **** ***** ******* ******** *** ADT, ******* *** ***** ** *********'* *********** *** ***** ********** ************, ***** comes **** **** ********.
***** ********** ** *** ****** ********* its ******** **** ****** **** ** the ***** ******** ****** ** *** past *** *****, ********** *** ** has **** **** ** **** **** several "***** *******," ****** ** ****** disclose ***** ***** *** ** ****** NDAs:
***** ****, ** ******* *** ****** journey **** * **** ****** ************* of *** ** ******. ** ******* to ****** *** *** *******, *****, and ********* *********, *** ****** *** years, ** **** ****** **** ******* large ******* ** *** ** ****** [on *** ** ****]. ** ****** focus ** *** ********, ***** ***** that ********, ******* *** ******-***** ******* are * ****** *** *********** ** acquire.
**** ******** *********, ***** ********** **** Hualai ****** ***** **** "****** **********" with *** *********** *** ***** *** also * ***** ******** ********* **** the ****:
******* **'* * ********* *******, **** an *********, *****, ** ******** *******. What **** **** ** ****** ** that **** **** **** ****** ********** with *** *********** *****. **** ***** deliver *** ***** ** *** ****.
** ** *** **** ** ** to **** *** ***** **** *** clients. [** ****] *** ******* ** have * ********** *** ***** *********. We **** ****** **** [******* *** direction], ** ****** ** **'* *** year ** *** ***** ** ***** years, *** ** **** [****] ** have * **** ***** ********* ** that.
Product ******* *** *******/********* *********
****** ****** ********* ******* ******* ** different ***** ** ********* ********* ** their *****. ***** ********** ** *** different ****** ** ******** *********** ** does *** *** ********-****** ******* *** do *** ********** ** ***** ******** and **** ***** **** ******* ***************:
**** ** **** **** * ******* company ** ***** *******, **** ** them ******* **** *** ******* ********. Our ******* ** ** ******* *** firmware *** *** *** ** *** client ** ******** *** ***********.
** *** **** ****, ** ******* the ******** ********* ** *** ************ of *** *******. **** **** ****** clients, **** ******* *********, *** *** have * ***** ************ ********. **** already **** * [*****] ********, ***** is ******** ***** ** *** *** infrastructure *** *** *** **************, *** they ** *** **** * ***** surveillance ********. ****'* *** ** ********* build * ***** ************ ******** *** them. ** **** ****** ** **** billing ********* *** ******* ******* ******. Very *** ** **** ** *** have *** ***********, *** ** ***** work **** *** ********* ******** ** build *** *********** *** ****.
****** ********** *** ***** *********** ********** lineup** *** *******:
Third-Party *********
***** ****** ********* ****** *********** ***-*** or ************ ********** *** *********, ** normally ********** **** *** ********* ******** in ********* ***************, ***** ****:
** **** *********** ******** ******* **** the ** *** *** **. **** are ******** * *** ** **** and ****** ** ******* [*** **********]. We *** ***** *********, ********* ***** detection, **** ***********, ******* *********, *** pattern ***********.
***** **** *** ** ******'* ********* partners **********, *** ** *** ***** ******** "in ********* *******" ** ****. ****** itself *** * ****-****** **** ******** on *** *********** **** *****-***** ********** and *********** *****:
** **** * **** ***** ****, around **** ****** [** *********] *** the *******, ************. **** ****** ** deep *********** **** *** ********.
Pricing **********
***** **** ****** ********** **** ** charges *** ******* ***** ** ******'* input/investment ** *** *******, ** **** as *** *******' ******** ******:
** ***** **** *** ****** ** come ** **** * ******* ** service. **** *** ** ******** ** the *******? ** *** *** *******(****). The ****** ***** ** **** ** need ** ******** *** ********* *******. It ******* ** ***** ******** *****. Some [*******] **** **** ********, **** sell ******** **** *************, *** **** model, *** **** *** *********.
***********
***** **** ****** ***** *** ******** counterparts "***** *******" ******* ** *********** and **** ** ******** ** **** "layers" ** ******* **** **** ** these ***** *******. ** ******* ********** on *** ****** ******** ** *** lower-end ****** (******* ******* *** *********):
**** ******* *** ******* [******* ******** like] ******, *** **** * ***, five ** *** ******, *** ******* through *****-***-****** [********] **** *******, ******, Home *****, *** ******. ** **** [ODM] ******* [******* *******] **** ****** and *****-***-****** ******.
** **** ******* ****** ** [********], [not *** ** *** ******** ***] brick *** ******.
********* ******'* ******-*** *******, ***** ********* companies **** ****** ** *** "********* users," **** ** ******* *********, ** well ** **** ****** *********** *** have ****** ****** ** * **** residential ******:
[*** ***** ******* **** *] ********* user *****. [*** *******] ** *** telecom *******, **** *** **** ** distribute *** ****** ** ******** ** the ********* ***** **** *** *********** [market] ********. *** ***, ** ***** three ****** ** *** ****** **************, and ** *** **** ****** ** work **** **** **** ****** *********** to ******* ********* *** ********* *** apartments ** *********** *****.
***** ********* *** ***** **** ******* in *** *********** ******** ******, ****** recognizes **** ** *** "*******" *** offer ******* ******** ** ******. ***** told **** **** ****** **** *** view **** ** *********** *** ****** as ****** ******* **** *** ***** from:
*** ******* ** *** *** *******, like ********* *** *****, *** ** to *** *********** *******, *** ****'** doing **** ******* [****** **** **]. When ** **** **** *** ********, whom ** **** * **** ************ with, ** **** ***** * *** from ****[********* *** *****].
** ***** ** *** ***, ***** and ********* ** *** ******* ** much ** ****** *** *** ******** in *** ***** ***-**** $** ** $40 ** ****** *****.
"Growing ** **%-**% ** *** **** **** *****"
******* *******, ***** **** ******'* **** target ** ** ******** ** **** at **% - **% * **** in *** **** **** *****. ** also ******** ** *** *******'* ******** stability ** ******* ***** ********** ** achieving **** ****:
**** ** *** ******* *** ***** clients. **** *** ***** *********. ****'** very ******. *********, ** ***** * lot ** **** *** ****** ** verify *** ******** *** ******* ** they ***** **** **** [**** ********] every **** ** **% ** **%.
*************, ****** **** ** ******* *** products *** ****** ***** ****** ********* to ************* ****** **** ****** ** the **** **** *****, ***** ****:
*** **** **** ** **** ** want ** ******* **** *** ********. So ***, *** ******* *** [***] very *******, *** ****** **** ** some **** ***** ********** **** **********, optical, *** ** *****, ***** ** still * *** ** **** ** do, ******, *** ******* **** ****** cameras. **** ** **** ** **** to ******* ** *** **** *** to **** *****.