HikVision's lack of loyalty to its Channel Partners has been over-analyzed and to no one's benefit, except HikVision. Flat out, theirs is a scorched earth policy that is solely intended to gain marketshare at even their own reseller's expense. It is amazing the amount of Kool Aid they are pouring that distributors can't seem to get enough of.
LTS Hikvision Sales Challenge ADI
ADI is clearly #1 at running sales.
But long-time Hikvision OEM and new Hikvision distributor LTS is coming on strong here.
In this note, we examine LTS's move here and how their distribution of Hikvision could impact the competitive balance of video surveillance distribution.
Ramping ** ********* **********
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Now ********* ****** '*****' *****
*** ** *** *** ********** *** when ** ***** ** ********* ***** as **** **** ********* ***** ******* 'One-Day *****' *****, **** ** ********** *** ** start:
***** *** ******** ** ** '*** **** and ****', *** *********** ** **** spend $*,*** ** *** **** '*****', especially *********** **** *** ******** ******** 5x **** ****** ($*,*** *******) ** *** 15% ***.
Good *** *********
** *** * ****** ** ******** for ********* **** ****:
- ********* ********* *** ******* *****, ***** is ***** ********, **** ***** ***-******* LTS *****.
- *** ** *** ******* ** ******* Hikvision's ***** ****** **** ******* ******* it, ***** **** **** ************ **** (e.g., *** ********* ** '*** *** Hikvision **** ** **** *** **** ***** at ~*% ***** *****')
- *** ******** **** *** **, *** less ********* **** ********* ** ** ADI, ** *** *********'* ******* ******** ***********.
Challenges *** ***
*** *** ******** ** *** **** running ***** *** ******* ************* ******** by *** **** ** *** ****** to ***** **** ***** *** **** losing ******* (*.*., ********* ***** *****-************ ***** *****). *** ********** ******** **** ***** the ***** **** *** ******* *****, though ****, ********** ****** ***********, **** these less ********* (*** ********** ** ***** ** *********** - Statistics).
********* ** ************ *** ***** ******* *** flash ***** **** * ************ ******** ***** ***** people *** *******. **** *** ** now ****** ********* ** **** ******** them * **** ** **** *** ADI *********. ** **** ******* ********* sales ****** ** ********* ** ***** some ** ***** ******* ** ***, rather **** ***.
**** ***'* ***********, *** ** ***** very *****. *** *** ***+ *********, billions ** ******* *** ******** *****, while*** *** * ***** *********, *** ******* ******* *** **** limited *****. ** *** ****** **** LTS ***** **** *** ******** ** may ** ** **** **** * nuisance *** ***.
*******, *** *** ***** ******* ** *** past *** ***** ******** ***** ** ***** ****** *******, **** ********** cold ******* **** *********** ******* *****, now ******** **** *********'* ******** ***** (compared ** ***), ******** **** * foundation *** ******* ********* *** *********** against ***.
Wrong answer, apparently you are not a volume trusted partner. Hikvision treats respectable dealers with respect, only thing they are scorching is naysayers that whine about problems that are glamorized and blown-out of proportion by writers instead of stories by actual dealers that sell systems instead of sitting around comparing 1/2 cooked Survey/Poll data.
#2, do you think it is fair to a super partner like yourself that random guys buying $1,000 of Hikvision products get 15% off? Haven't you worked hard to earn the maximum possible discount over an integrator who just buys $1,000 in products?
If I were a loyal HikVision dealer (which I am not) - I would definitely feel no love when "Two Bob's In A Truck" can beat my price.
Nope, I'd rather stick with my manufacturer where I know I've earned the lowest price.
Thats why you should buy from Hikvision,best support EVER and reasonable pricing for dealers that have proven they support them all the way.Tell me how you beat LOCAL support from technicians that do not read off a script they actually are hired because they are knowledgeable and understand networking and the complications that may arise.
I agree we have worked hard, but that is only one piece of the equation. We support Hikvision, Hikvision supports us. In terms of cost, we could care less what anyone else does, I know that I am getting a square deal every purchase I make. Joe Blow Integrator gets no where near the pricing that any trusted Platinum level dealer gets.We dont buy cameras one by one so the comparison does not fit. It does not bother me one bit that 'Integrator x' purchases (50) cameras a year and he gets 15% off. So what, don't give a hoot!
Hey John
One thing that all having the same price does is forces competition based on integrator performance as opposed to who can get the best deal on cameras. I would argue that this could be good for the end user long term. I am not an economist but I would hazard a guess that they would see this market as evolving towards a commodity business .... the key word is evolving. We can argue till the cows come home but cameras are getting better and cheaper every day. The revenue from the mark-up will also come down accordingly.
Integrators will earn their bones by building relationships with clients that start with accurate project definition at the earliest stage through to a maintenance program and eventual ever greening. Their value will be in their people and not how much they can mark up somebody else's products.
Super dealers will have the short term advantage of the most experience which should (but clearly does not always) translate into better system design, install, maintenance and ever green. They also have the burden of higher overheads ...
Have a great Day
rbl
At issue for the distributors is that HikVision offers deals to everybody constantly, so the wholesalers are compelled to participate. Otherwise, they'll be at a disadvantage on any given month on any given item. This is why the Joe Blows can compete or beat the regular HikVision user bid. It's on sale somewhere every month, usually at 15+% off regular dealer price.
From what I know, Hikvision and also Dahua provides a certain amount of discount for resellers or their OEM partners if they use Hikvision brand against rebranding. Some of the OEM partners will then be compelled to join and become an authorized distributor of Hikvision. It is a trade-off business and every OEM partner has to do the math and optimize their choice.
a certain amount of discount for resellers or their OEM partners if they use Hikvision brand against rebranding.
Robin, are you saying that Hikvision charge less for their branded products than their white labelled / re-labeled ones? I want to make sure I understand correctly.
What I have heard on this topic, and I am not certain, was that OEMs who sold the branded versions had to pay a premium for the branded version, which would make sense to me since typically brands view their brand as a premium, not a negative.
...OEMs who sold the branded versions had to pay a premium for the branded version, which would make sense to me since typically brands view their brand as a premium, not a negative.
On the other hand, aren't they trying hard to build their own brand awareness?
Let's say for instance that the OEM has no branding preference for a given model except for lowest price. Wouldn't Hik want their label on it then?
Let's say for instance that the OEM has no branding preference for a given model except for lowest price. Wouldn't Hik want their label on it then?
I do see that logic given their desire to push their brand but the whole point of building a brand is to get people to pay a premium for that brand. Why do things like 'the art of video surveillance' campaign if you make less money selling it with your brand than without it?
Another week, another LTS sales 15% off Hikvision again:
Another Tuesday, another LTS Hikvison 15% sale:
Lol, LTS is expanding 'Love Tuesday Sales' to be Monday, Tuesday and Wednesday
By summer, every day will be sales day...
LTS is expanding 'Love Tuesday Sales' to be Monday, Tuesday and Wednesday
Naturally the company name will be changed to LMTWS to avoid confusion.
no surprise Hikvision owns LTS, through hidden stock deals I bet