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 ShootoutSamsung 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?

3 reports cite this report:

Samsung Brand 'Phasing' Out For Hanhwa Techwin on Nov 14, 2016
The phasing out of the Samsung brand for video surveillance products continues. First, it was the corporate name changing from Samsung Techwin to...
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

Free Trip To China - CCTV.Net / Univew on Mar 15, 2018
Pack your bags? 'Closer than you think'? Well, a non-stop flight from NYC to Shanghai is 15 hours plus another 100 miles to Hangzhou...
Favorite Camera Manufacturers 2018 on Mar 12, 2018
A number of major moves in integrator's favorite camera rankings for 2018: Two manufacturers make major moves up One major manufacturer moves...
Avigilon Breaks $400 Million Revenue, Quadruples Profit, Weakens Competitiveness on Mar 07, 2018
The last annual Avigilon financials are here. With the imminent Motorola acquisition completion, Avigilon will cease to be an independent publicly...
ADT: "Hate That Company" Loses Billion On Amazon Ring Deal on Mar 02, 2018
It has not been a good 2018 for ADT. And this week has been even worse. In the aftermath of Amazon acquiring Ring for a billion plus, ADT's...
Why 3VR Failed on Feb 16, 2018
3VR destroyed transformed ~$65 million in VC funding into a $6.9 million exit. The reason they failed is simple. They bet on analytics. They...
Ingram Micro Owner HNA Declares "Victim of Conspiracy Against China" on Feb 08, 2018
Just 2 years ago, Ingram Micro was acquired by a Chinese company that paid them $6 billion in cash, nearly 40% more than their then stock...
Convergint Damage Control on Feb 07, 2018
Convergint needs you to understand. When Convergint acquires companies, as they continuously do, it is an acquisition, e.g.: But when...
Hanwha: Chinese Products Damaged Industry on Jan 25, 2018
Hanwha Techwin's CEO has come out swinging against the Chinese. In this note, we examine his statements, the relative positioning of Chinese and...
Axis: "It’s A Question Of Trust And Who You Want To Be Associated With" on Jan 17, 2018
Who do you trust? Who do you want to be associated with? Axis is raising hard questions to start 2018. In this note, we examine these questions,...
'Defiant' Hikvision 'Strikes Back' At WSJ And US on Jan 16, 2018
The fight is on. Hikvision and their owner, the Chinese government, 'strikes back' against the Wall Street Journal and US politicians raising...

Most Recent Industry Reports

April 2018 IP Networking Course on Mar 18, 2018
Save $50 ends this Thursday, March 22nd. Register now and save. Lots of generic network training exists but none of it really explains how it...
May 2018 Camera Course on Mar 16, 2018
Our next course starts on May 8th. Register now for the Spring 2018 Camera Course This is the only independent surveillance camera course, based...
ADT Hammered Again, Loses Another Billion In Market Cap on Mar 16, 2018
ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5. But investors told ADT's CEO, 'in baseball terms', that he was...
Camera Form Factor Guide on Mar 16, 2018
When selecting surveillance cameras, users may choose from a number of different form factors, each with its own unique strengths and weaknesses,...
Free Trip To China - CCTV.Net / Univew on Mar 15, 2018
Pack your bags? 'Closer than you think'? Well, a non-stop flight from NYC to Shanghai is 15 hours plus another 100 miles to Hangzhou...
Access Control - Restricted Keys Guide on Mar 15, 2018
Not all doors, even in larger facilities, can justify using electronic access control. And even for doors that do have electronic access control,...
Rack Mounting NVRs Tutorial on Mar 14, 2018
Rack mounting recorders is common in professional systems, but manufacturers are making it difficult, with simple design failures causing multiple...
Network Addressing for Video Surveillance Guide on Mar 14, 2018
The goal of this guide is to explain addressing devices on IP networks, focusing on how IP cameras and recorders are used in those networks. For...
Panasonic Selling Off Security Camera Factory on Mar 14, 2018
Panasonic is OEMing cameras from Dahua, as IPVM testing confirmed in 2017. Now, Panasonic is selling their security camera factory, according to...
Favorite Electrified Locks 2018 on Mar 14, 2018
Electronic lock manufacturing is dominated by 3 conglomerates (alphabetically) Allegion, Assa and Dormakaba holding numerous electronic lock...

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