Most China manufacturers are going to be impacted by the NDAA 'Blacklist Clause' going into effect on August 13, 2020, as it covers not only Dahua and Hikvision but devices using Huawei Hisilicon chips. Now, one China manufacturer, Sunell, most known for its 'Panda Cam', is marketing 'fully' NDAA compliant product portfolio.
We spoke with Sunell Co-Founder and CEO Ann Wu about Sunell's NDAA-Compliant message and its fever detection technologies.
These guys are pretty small and not very sophisticated. There are among a group of third tier players in China that includes: JUAN, TP-Link, Topvision, HBGK, JvFeng, Topsee and a few others. They dont know how to market to the west and are struggling on how to separate from the big guys. This is a good start but they wont know how to fully take advantage of this.
but they wont know how to fully take advantage of this.
What would you recommend?
My hypothesis is that all or virtually all of these companies do not have the resources to make a run at building a branded business in the West. Dahua and Hikvision have sucked up so much of China's video surveillance business that virtually everyone else (even Uniview) lack the tens of millions it would take to build strong branded businesses overseas (meaning hiring a critical mass of local sales and support employees, getting distribution agreements, etc.). Agree/disagree? Curious to hear what people say.
If you dont have the resources (agree they dont), you partner with people that do. This is a classic channel use case scenario. Not suggesting ADI unless they become the house brand but regional independent exclusive arrangements. Create a brand name for the western markets. Finding a small group of good partners is the way to go for them.
You could consider UNV above Sunell and even UNV struggle to find the partners suitable to re-sell UNV branded product. UNV in markets dominated by HIK/Dahua has had to select much smaller lower-tier distributors/resellers so Sunell will struggle much more IMO!
Getting partners to re-sell still requires resources, doing it all from China with bad English doesn't exactly produce results.
There's still the budget / price-sensitive market so either Hikua keeps that or companies like Sunell try to fill the gap. I don't currently see any Taiwan or Korean manufacturers with the pricing and scale to fill that for the budget market. Thoughts?
I agree, but how many global companies are included in the price-sensitive market that care about NDAA compliance?
I define global as a multi-billion dollar company that has hundreds or thousands of facilities in several countries. Poor relations with China are centered in the USA, but so is the bulk of global companies that would care about NDAA compliant products. My experience with global companies in USA suggests that they normally wouldn't touch a mainland China security device (unless we have an unprecedented catastrophe and they get desperate for a solution, like Amazon). Hikua is huge in South and Central America and there are large companies there, but they clearly don't care about NDAA compliance. The NDAA Panda is a great move, but I don't see them achieving much growth by thinking changing the SoC means they can now focus on global enterprise. No matter which elite cartel takes power in November, our issues with China are just getting started and I think most global enterprises won't entertain that risk.
The US government has issues with companies that sell non compliant equipment. There are concerns about the components of any electronic equipment made in China. China is not a TAA participant. ThE US Government contracting authorities typically are required to by American or TAA Compliant products.
I'm 99% sure the solution is MStar or Chinese name called Anjia.
Both companies in the same building on the same floor, where the two of them are so close you pass 50% of Sunell office space just to get to MStar one.
MStar has SoC solutions an SSC325 for 2MP, 15FPS 5MP with an SSC316DM, and 30fps using an SSC328Q, and the top 8MP is also an SSC328Q. So don't overpay for 8MP when it's the same as 5MP solution, nobody uses real 8MP lenses so you are only paying top $ for 8MP unless memory is larger. (unknown at this time)
MStar is aiming to get as many domestic customers in China because they know they can try to sweep up the HiSilicon fallout potential at least from a USA customer perspective.
Many of my clients are companies who have federal contracts. They have thousands of employees and are ready to pull the trigger on purchasing dozens of temp/mask detection units. We have yet to find an NDAA compliant system we can sell them that meets their requirements. Where will this new tablet be available for purchase and when? I'm sitting on hundreds of thousands of dollars in PO's and can't sell anything until we find a solution that will not compromise their federal contracts.
According to Sunell, samples can start shipping on 8/15 and mass production will begin at the end of August. Finding specific distributors depends on your area, but IPVM has a shortlist of relabellers in this report that may be helpful to look at/contact.
We have yet to find an NDAA compliant system we can sell them that meets their requirements
In addition to Sunell, I confirmed that Seek Scan is also NDAA compliant. I mention that because at ~$2,000, it's the same price range and, in our testing, Seek Scan, offers more reliable performance (given the blackbody and inner canthus measurement) than tablets.
There are a few solutions manufactured in China which would be NDAA complaint, many access control companies have no history using HiSilicon and so use a variety of other chipsets. There are Android-based devices, which have been popular on the turnstile devices, and a̶r̶e̶ were used in China. (used? because I've yet to see a functional device in operation.)
Additionally, there are alternative solutions from other large companies that are available, offering the full IoT kits including face recognition. Who's probably been doing face detection long before HiSilicon got a foothold!