Milestone's Mexico Business Examined

By Robert Wren Gordon, Published Jul 26, 2021, 11:53am EDT

Milestone still faces difficult challenges 15 years after launching its Mexican operations. But, after using Mexico as a springboard into Latin America, the Danish manufacturer is positive about the future and pandemic recovery.

IPVM Image

IPVM spoke with the Copenhagen area-based software company about its Mexico business and the challenges that it faces south of the border.

This is the fourth in a series of posts examining the Mexican businesses of various video surveillance manufacturers. See also:

Estimated ****** ***********

***** ********* ********* ******** in *** ***- *** high-end ******* ** *** US, ** ******, ** in******, ********* **** ******** in *** ****-*** ****** due ** **** ** the **** **** ****** cameras ******** ** ******** the ******* ***** ************ market. ************, ********* ******** against *******, ***, ****, and ******** ** *** high *** ** *** market, **** **** ********** that ********* ** ******* than ******* *** ***, each ** ***** *** thousands ** ******* ** Mexico ****'* **** **** projects.

**********

********* ******* *** ******* market ** ***** ***, just *** ***** ***** it ****** *** ** office:

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********* ******* ******* **** Mexico ** ****.

*** ****** ************ ***** that ****** ****** ** the ********* *** *** Latin ******* ********, ******** the ******* ** ****** into ******* *******, *** Caribbean, *** ***** ***** America:

** ***** ****, *********’* LATAM ******** *** ****** focused ** ******.We **** **** ** ****** *** * **** ****, ******* *** ********, ******* ******* *******, *** ********* *** ***** ***** *******. We wanted to understand the market up and down. We have been focused on having our ducks in a row and making sure there are no irregularities in the region. We wanted to establish a full legal entity, the right way. [emphasis added]

Investing ** ******

********* ********* *** ****** operations, ***** *** ******** on ***- *** ****-*****, to ** ** ******** of *** ** **********:

*****, *********’* ****** **** office ** ** ********* of *** *.*. ****** which ** ***** ******* of ********, **. *** Mexico **** ****** ** focused ** ***-***** *** post-sales ******* *** **********. Our ***** ***** ****** are *****-*****. ** ******, we *** ******* *** investing ** ******.

IPVM Image*********, ***** ****** (*** Latin *******) ********** *** led ** **-**** ********* veteran**** ****** ******(********) ** ****** ****, reports ** ******-***** ********* between ******* *** *****:

** ********* **** ** employees ******* ******* *** sales. *** *********** **** we’re ****** ** ****** are ***** ** ******. People *****. **** ********* for ** ** **** the ******* ****** *** the **** **** ******* to ******* *** **** forward.

***************** ** *** ** Mexico-based *********, ************, ** LinkedIn ***** ***** ************** *** ****** ***** member.

************

********* ********* **** ** only ***** ** ****** through *** *** ***** distribution ********:

*********’* ****** ******** ** through ************. ** ****** specifically ** **** *******, Intcomex, ******, ****, ****** and ******.

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******* ** *********'* ******* distributor ** ******, ********* to ******** **** *******.

Syscom/Hikvision ******

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***************** * ***** ******* ******* *********** ******, as **** ******** **** month. ***** **** **************'* **** ********** ************* ******, ****** **** distributes *********.

********* **** **** **** it *** "** *******" on *** *********/****** **** and **** ** ********* its *********** ************* ** an ****** *****:

****** ** *** ** our **** *** ***** Distributors ** ***** **** meets *** ***** ** a ******* ** *** that ** ******** **** them. ** ******** *** distribution ************* ********, *** we **** ** ******* at **** **** ** any ******* **** ** might **** ****** **** annual **********.

*********

*********'************* **** ** ********* in ******, *********** ** Mexico **** *** *** surrounding ****** *** ** northern ****** ****** **** as**** **********,******,*********,***** **ó*, *************:

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*********'* *********, *** **** part ** *** ************'******** ******* *******, *** * ***** of *** ******* ** Mexico, ***** ** ******* to **** ** **** resellers, *********, *** ***********:

** *** ******* ** developing *** ********* *** Channel ******* *******, ********** the ***** *****, *** empowering *** ******** ** add ***** ** *** solution **** *****.

*********'* ****** ********* ******* over ** '****' *********; however, *** ****** ************'* website **** *** **** any '*******' ** '********' resellers *** ******.

***-*****

********* ******** ** ******* any ** *** ***-***** in ******:

** ****** ******** *** project *** *** ** the *************** ** *** agreements. ** **** **** able ** ***** **** profile ******** ** *** City ************ ********, ***** is *** ** *** target ********* ** *** region.

********* ******** ** **** IPVM, ******* **** ** has ***** ****** ********* locally, *** ** ***** relate ******* ** ****** safety:

*** ****** ********* ** Mexico ***: ******** **************, Transportation, *** **** ******.

IPVM Image********* **** **** **** Mexican *****-***** *** ************, ********* ** **** sources. ************, * ********* distributor **** **** *** Danish ******* *** * 5,000-channel ******* ** *** Mexican ***** ** ******** several ***** *** *** that ******* ***-*****, ** contrast ** ********* ***-*****, for *******, *** ********* to ***** ***** *************** to ** ******** ** success *****:

[********* ***] ~*,*** ******** in ******** ****.

******* ***-***** ** *** like **** ***** ** publishing ******* *****. ** don’t **** **** ****** of **********.

******* **** ********* *** deployment ** ****** ****** projects ** *** ******* state ** *********. *** company *** **** ******** in *** ************** *** projects ****************, *******, ****** ****, and ******.

Mexican ***-***** ******* ****** ***********

IPVM Image********* ********* **** "***** is * ****** ******** for *********" **** ** facial *********** ** ****** as ******* ** *** US, ******* ******** **** Mexican *********** **** ** IPVM ** *** *****:

We *********** **** ***** ** * ****** ******** *** ********* ** ******* ** ***** *** ******, ********* ** ******** *** ****** ***********. We see that the demand for these types of solutions is more than in the U.S. and we work with a variety of partners to meet these needs not only in LATAM, but globally. [emphasis added]

***********, *********'* *********, **** as ****** ***********, *** not ** ******* ** Mexico ** **** *** in ***** ***********, ********* to * ********* ***********:

****** *********** ** *** used ****. ********* *** its *******, *** ** the ******* ******, ** always *** ** ***** with *****-***** *********. *** brand ** ****** *****’* look ** **** *** analytics, ** ***** ** sell *** ***.

Stability *** ********

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********* **** **** *** business ** ****** ** helped ** *** ******** that *** ******* ** one ** "*** **** mature *******" ** ***** America *** *** **** "more ******" ************ **** its ********* **** *** last **–** *****:

In *** **********, *** **** ****** ******* ********** ***** ***: ******, ****** *** *********. We’ve had similar levels of success in all three countries. Because we have been in Mexico a much longer time than Brazil and Argentina, this has helped us develop relationships with partners that understand our products and help us grow the business. Another important thing to mention is that taking 2020 out of the picture, Mexico *** **** **** ****** **** ****** ** ********* ** *** ******** ****** ** *** **** ******, *** **** *** ****** ***** **** ******** ** ******. [emphasis added]

*********'* ******** ********* ******'* stability ******** ** ******** neighbors *** *** *********. The ** ******/******* **** exchange **** *** ******** to *** ***-********, ** 2019 *****, ** **************** *****, ***** *** US ****** ********* ** buy ************* **** ********* pesos *** ********* ***** than ** *** ** Q3 ****.

**** ************, **** *** period ******* **** **, 2011, *** **** **, 2021, *** ******* **** only **** ** ******* of *** ***** ******* the ******, ***** *** Argentine **** *** ********* real **** ** *** 70 *******, ************, ** their ****** ******* *** dollar.

***********, ******, ** **** member ***** *** ** more **** ****** **** of *********'*, *** ******* defaults **** *** **** 10 ***** (********* ********* in **** *** ****) as **** ** ******** crises **** ***** ********** *** ******* ****** since ** ***** **** 2015.

Challenge: **** ****** **** ***********

********* **** **** **** they *** "*** *** cheapest," ************* **** ******* competitors ***** *** ** lower ***** ******, ** is *** **** ** Brazil.

*** ****** ************ **** that ***** **** ** their **** ** "********** the ***-********'* ******," "********* we ****":

Mexico ** ****** * *****-********* ******* *** ******. For Milestone to be successful, we have to understand and listen to the end-customer’s needs and understand the end-customer’s budget. This is the key to our success. We listen, are humble and work hard. We always approach a customer with the idea of showing the value, the differences that set us apart, and this is what really makes the partners and end-customers choose our platform and understand our platform. Many times, they love the platform. We compete; sometimes we win and sometimes we lose. We compete by offering the best solution and do correct business with our resellers and end-customers. There is no magic, it is just being able to do it correctly. We have a team that understands this, and partners that understand we want to do business correctly. Yes, we’re *** *** ********, *** **** *** **** ** *** ******* *******, *** ******* ********, ** *** ****** ***********. Our Channel Partner Program gives certainty to the resellers. They know that we don’t play with pricing, and that is there for a reason. It helps the partners know we are a solid company, we are here to stay, we are continuing to grow and doing things correctly. [emphasis added]

** ***** ****** *****, a ****** ******** **** Milestone's ****** ******** **** IPVM **** ** ** important ** **** ** on *** ***-****'* ***** and *** *******/**** **** too **** ********:

**** *** **** **** [features], **** ***’** *** showing ********[.]

Challenge: ***** ******** ***********

IPVM Image

********* **** **** "***** currency ***********" ** * challenge **** ** *** faced ** ******.

*** *******, *** ***/*** exchange **** ****** ** Q2 ****, **** **$* buying ****** *** ** in ***** ***** ****. That ****, ***** ** 2020, *** ***/*** ******** rate *** ******* **** at ******* ****** ** what ** *** ** Q3 ****, ****** *** ongoing ********.

***** ******* ******** ************* have ****** ** **** that *** ******** **** has *** **** * top ************* ****** *** pandemic, ******** ** ******, where *** ***/*** ******** rate *** ********** ***** as * ***** *******, particularly *** ***-***** *************.

Challenge: ******** ************

********* **** **** **** "economic ************" *** * challenge **** ** *** faced ** ******.

******** ***** ** **** and **** ** ****** and *** ****** *****, prior ** *** ***** changes ** * *******’* administration/leadership/ruling ****. **** ** outgoing ************** ******** ***** be ******** ** ******* by ** ******** **************. This ** *** ********* we *** ********* ** the *.*. ** ** markets.

*** ***** ******** ****'* *** ************* Airport, ***** *** ********* built ****** *** ************** of ****** ******* ********* Enrique **ñ* ***** ****** being ******** ** ******* Mexican ********* ****é* ****** López *******, ******** ******** that *** *** ******* a ****** ** **************.

Challenge: ********** ***********

********* ***** "* ********** level ** **************" ** competitors *** ***** *********** discounts ** ******* *****/******** as * ********* ** faces ** ******:

Unnatural ********* ** ***********. **** ******** * ********** ***** ** ************** ** **** **** ******** ***********. It changes the dynamic of how we compete. As we seek to run a structured business, we don’t drop our price for every deal. In a perfect world, everyone would follow a more structured way of interacting/competing in the local marketplace. [emphasis added]

********* ***** ********* **** by "********* *********," *** Danish ************ ***** **** its *********** **** **** variable ***** ********** *** offer ****** ********* **** in ***** ***********:

** ********* *********, ** meant **** *** *********** in ****** **** **** disciplined ***** **********/********* **** we *** ** ***** parts ** *** *****.

Challenge: **** *** ********

IPVM Image

********* ********* **** ** did *** **** *** Mexico ***** ***** ** 2020 *** ***** **** "it ****'* * ********" and **** **** ******** its ****** ***** **** from * ******-**** ***** to * ******** ***** America ***** ****** *** Latin ******** ******** ** "keep ******* ****** *** pandemic":

***** *** ********* ******** of *** ******** ** Mexico—one ** ****-***** *** the ***** ** *****.In ***** ** *****, ** *** * ***** **** *** ** *****. *** ** ****’* * ********. ** ****’* **** *** ************, but overall we held our own. Because our Mexico City office is also focused on post-sales both in LATAM and the U.S., throughout 2020 we prioritized support in the entire region. This helped our partners keep selling during the pandemic. Product training went online with webinars. This attracted thousands of partners. We then strengthened our Care campaign. This in turn enabled our partners to continue their business without having to be onsite with each customer. By focusing on our strong partnerships and partner network, we were able to navigate the worst aspects of the pandemic and focus on our long-term commitment to growing our presence in Mexico and the rest of LATAM. [emphasis added]

Challenge: ***********

IPVM Image***** *** ** *********'* primary ******* ** ******, Milestone's***** ****(********) *** **** **** in ******, ****** **** recently ********** ** *** local ******, ********* ** a ****** ******** **** Milestone's ****** **********.

*********, **** ***** ************* such ** ***** *** and ******, *** *********** difficulties ** ********* ******** into ******, **** *** person ******** **** *** Danish ************'* **-******* ********** as "* ******":

** ******, ** *** a ****** [** ****** Husky ****].

****** ***** * "******" for *********, ******'******* ********* *********(****), ** ******* ******** norms, *** * ******* for *********'* ***** ************, one ** **** **** IPVM **** **** ****** them ** **** ***** NVRs *** **** *** Milestone ******** *** ******** of * **************:

****** *** ****, ** had *****, *** ** never *** *** ******* that ** ********.

Challenge: *********, ***** ***

***** *** ********* ** Milestone, *** ** *** Danish ************'* ******* ************ pointed *** ************ ** Dahua's *** *********'* *** VMS ********* ** ******-**-****-**** threats ** *********'* **-******* business:

********* *** ***** **** improved ***** *** ****** by ******, **’* *** at *** ***** ** Milestone *** ********* *** Dahua **** ** ***** advisors ** ******.We *** ** * ***-***-******* ******, *** *** ** ********* *** ***** ***** ** ** *** **** ***** ** ********* *** ** **** ***** ** **** ****** *****. [emphasis added]

**** ******************** *****'* *** *********'* improving *** ** * February ****** ** ***'* Brazil ********, **** * Brazilian ************ ***** ** ISS's ********** ********* ******* that *** *** ******-***** VMS ************'* ******* ******-/****-**** challenge ** ********* ******* Dahua *** ********* ** the ***** ********** ******.

**********

** ******, ** ********, ********* *** ** among *** **** ********* options *** ***** ***-*****. The ********** ***** ** Milestone's **** *****, ** what *** ****** ******* recognizes ** * "*****-*********" market, ******* **** ******** and ********* ************ ********* important ****** ****** ******** are *** *************; *******, Milestone *** ********* ** building *** ***** ** Mexico ** **** ** regionally ****** ***** ******* over *** **** ** years.

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