Samsung Losing Its Name and Integrity

Author: John Honovich, Published on Mar 04, 2016

Samsung's video surveillance division told everyone that nothing was going to change. They were wrong, if not lying.

They are losing the Samsung name and, in the process, their integrity.

Samsung False Assurances

When Samsung sold off Techwin 16 months ago, Tom Cook, their US VP, staked his reputation on this declaring:

“Samsung Techwin will continue to provide product under the Samsung branding. This is a key negotiation point with Hanwha and Samsung, so that won’t change at all as far as the industry sees it,” said Cook. “This is basically an umbrella changing stock transaction." (emphasis added)

Now, Samsung Techwin will no longer exist. Even at that time, IPVM correctly noted this was a sale of Techwin from Samsung to Hanwha, not simply a 'stock transaction'.

Then Cook, in June 2015, admitted that it was more than a 'stock transaction' and that they were becoming part of Hanwha but that the Samsung corporate name was being kept in the Americas and Europe:

"[The Hanwha name] will be applied only for HQ in Korea, overseas companies will remain intact, which means STA (Samsung Techwin America), STE (Europe) and SST (Shanghai Samsung Techwin, China) will keep their current corporate identities including company name and brand." (emphasis added)

Now, Hanwha has admitted that they are losing the Samsung 'corporate identities' around the world.

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Cook also doubled down just 5 months ago, emailing us:

"Hanwha Techwin has unrestricted use of the Samsung brand beyond 2017 furthermore, it is our decision to keep the brand name for years to come."

Evidently not.

Name Gone - Brand Phasing Out

The company name is now gone. Samsung Techwin will be Hanwha Techwin, i.e., in the US, it will be Hanwha Techwin America and the Samsung brand on products will be phased out in some undisclosed time.

Of course, as an IPVM member has already shown, this was in progress even before Samsung Hanwha announced it:

The main global Samsung Security website has been switched over to Hanwha:

Competitive Impact Significant

In IPVM testing, Samsung Techwin cameras are generally above average competitively (e.g., see: Samsung Wisenet III Camera Shootout, Samsung Wisenet Lite Cameras Tested). However, Samsung Techwin had mixed integrator results (see Worst Camera Manufacturers 2016). Our surveys show that the main driver for choosing Samsung Techwin was a lower cost, stronger branded alternative to Axis (see: Top Manufacturers Gaining and Losing 2015).

Without the Samsung company name, Hanwha Techwin will become more like Hikvision or, worse, Dahua, even assuming pricing and product development is not adversely affected. For example, Hanwha does not have the breadth and sophistication of Axis' line nor the strong end to end offering of Avigilon, etc. to fall back on. The Samsung brand has been the key differentiator between the Chinese low cost manufacturers and Techwin.

Bad Branding Impact

Samsung is one of the most well known brands in the world. Hanwha's brand is virtually nil in the West.

As one security end user wisely opined:

"If I say to my boss, "We are going to go with Samsung." I will have no questions, issues or push back. If I tell him "We are going to go with Hanwha Techwin." I will have a fight on my hands before I can even explain anything.

Put another way, the spell check on here has no issue with Samsung but marks both Hanwha and Techwin as being spelled wrong. I think that says more about name recognition than anything else we can discuss."

Worse, since Samsung made such a big stand about business as usual and no changes, what else should people expect?

Hanwha says everything else is the same - people, products, etc. Probably today that is true. But in 16 months, they went from saying this was just a 'stock transaction' to now losing their company name and identity. What happens next and can Hanwha be trusted?

2 reports cite this report:

New Products Directory - ISC West 2016 on Apr 01, 2016
It has been a busy few months in the industry, with new product announcements, many acquisitions and lots of moves. Here is a directory of them all...
Hanwha / Samsung Launches Analog HD+ on Mar 31, 2016
HD analog continues to gain stream. Hanwha (formerly Samsung) Techwin has launched their professional line of AHD products, which they are calling...
Comments (41): PRO Members only. Login. or Join.

Related Reports

How To Become an 'Expert' In An Hour on Sep 02, 2016
If you want to be perceived as an expert in your market, speak at every event possible... the math is simple: when someone stands in front of an...
Axis Takes Over Canon Surveillance Sales and Marketing on Sep 01, 2016
The wasteful Axis / Canon conflict is ending. After more than a year of Canon's video surveillance group competing with Axis, Canon...
How Much Axis and Avigilon Pay For Sales And Marketing Per Camera on Sep 01, 2016
When you buy an Axis or Avigilon camera, how much of that goes to pay sales and marketing expenses? Is it trivial like $2 or $3? Or is it far...
Get End User Leads for Just $997 A Month on Aug 31, 2016
Scam or opportunity? As trade mags continue to suffer from the decline of print media, they are scrounging for new ways to make money. Rather than...
Integrators Vs Manufacturers Direct To End Users on Aug 31, 2016
Many manufacturers have increasingly large and hungry sales forces that call on more and more end users. One recent example is Axis ~$20 Billion...
US Embassy Requires Hikvision Cameras on Aug 29, 2016
The US Embassy in Kabul Afghanistan has required only Hikvision cameras in a new US federal government bid. However: Hikvision was founded...
Milestone Declares End-To-End Is A Dead-End on Aug 24, 2016
While Axis celebrates their end to end system win at top 50 global retailer H&M, their Canon sister company Milestone is proclaiming that...
Hikvision 20% Price Cut Twice In A Month on Aug 23, 2016
Days after celebrating the Chinese government's commitment of up to $3 billion USD more in funding, Hikvision USA is now launching up to 20% across...
Axis Wins ~$20 Billion Retailer With End to End Solution on Aug 22, 2016
Sorry, Axis partners, you are not needed here. Axis 3.0 is ramping up with the Avigilon approach. Based on internal Axis documents, IPVM explains...
Axis Lists Itself First Among VMSes on Aug 19, 2016
When you think of VMSes, who do you think of first? Well, Axis, the camera manufacturer, thinks of itself. Axis declared: There are a variety...

Most Recent Industry Reports

Nest Cam Outdoor Tested on Sep 23, 2016
After years of claiming an outdoor model was "coming", addressing their biggest user demand, Nest has finally released their Outdoor Camera, an...
ACTi Refuses Race To The Bottom, Shifts To Solutions on Sep 23, 2016
The original low cost IP camera disruptor was ACTi. Back in the 2008 - 2010 time frame, Taiwanese manufacturer ACTi challenged the Western and...
You Get Robbed, Canary Will Pay You Up To $1,000 on Sep 22, 2016
Canary is trying to break the status quo in DIY security, first by raising over $40 million, and now a revamp of their monthly services package...
Milestone Ends Development of "Enterprise" VMS on Sep 22, 2016
Milestone 'Enterprise' was one of the first enterprise video management software offerings, selected by many early adopters of IP video. However,...
History of Video Surveillance on Sep 22, 2016
This is a concise history of video surveillance covering the past decade.  The goal is to help professionals newer to the industry understand...
Access Control Course Fall 2016 on Sep 22, 2016
IPVM offers the most comprehensive access control course in the industry. Unlike manufacturer training that focuses only on a small part of the...
Totally Wireless IP Camera (IPVideo Corp NomadHD) on Sep 21, 2016
Wireless battery powered cameras have been a surveillance pipe dream for years, limited by camera power consumption, battery technology, and...
Axis Launches IP Speakers on Sep 21, 2016
First, Axis introduced an IP horn, then it was video intercoms, and now it is Networked Speakers? While IP-based Public Address systems are not...
Tagged RFID Object Search Recorded Video on Sep 20, 2016
Video analytics has gotten fairly good at tagging people in video, but it does not solve the problem of finding items like specific merchandise or...
FLIR and Geovision Join the Hikvision Price Cut Race on Sep 20, 2016
Hikvision's price cuts are clearly a trend setter. After numerous and increasingly large cuts, the destructive cycle is accelerating. Last month,...

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