The Bizarre Dahua North American Tour

By: Brian Rhodes, Published on Jun 18, 2015

Dahua is worth $7 billion USD, more than twice what Canon paid for Axis.

And Dahua generated more than $1 billion USD in revenue in 2014 and nearly $200 million in profits. The only video surveillance manufacturer with greater revenues is their domestic blood rival Hikvision.

Yet, Dahua is struggling terribly expanding in the 'overseas' markets, stumbling with a planned massive American expansion, and flailing with failed channel strategy, while 'solemnly declaring' threats and espionage claims.

Now, Dahua is embarking on a bizarre 'summer tour' in North America. In this note, we break down what is happening and the problems with it.

***** ** ***** $* billion ***, **** **** twice **** ***** **** for ****.

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***, ***** ** ********** terribly ********* ** *** 'overseas' *******, ********* ***** ******* ******* ******** expansion, *** ******** ********** ******* ********, *****'******** *********' ******* *** espionage ******.

***, ***** ** ********* on * ******* '****** tour' ** ***** *******. In **** ****, ** break **** **** ** happening *** *** ******** with **.

[***************]

Summer ****

***** ** ***** ** 'summer ****' ************* ******, *** ***** ********** as "**** **** ********** Distributor", ****** * ********* in ***** *** * in ********.

***** **** ** ***** a **** ***** **** / ***** ***** *** plus ****** **** ***** at *** *** ** the ***.

**** ** ** ******* of*** *****:

***?

** *** ***** ** you ** *** **** who ********* ****** **, even *** ******, *** company ** *** * sizeable ******.

Buy ***** ******** **** ****?

*** ******* ******** **** raises ** ******* *** can *** *** ***** in ***** ******* ******** or ******* ********* ******.

** ***** **** ********* Outlet. **** **** ** **** ***** **** '*** same ***** ***** ******** under ***** *** ***** named ********', *** ** ** wanted ***** ******* *****, they ***** ** **** also. **** ***** **** ******* ***** *********** ** lower ** ** ****** Toughdog ******* ** ***** sign ** ** ** a ***********, *** **** was *** ** ****** with *****.

Why ***** ***?

********** **** * ***** distributor **** ******* ***** and *****, **** *** are *** ** *** biggest ************* ******** ** the ********, ** **** to **********. ***** ********* to ** *** *** worst ***** ****.

***** **** **** ** rectify ***** ***** ****** quickly ** ** ***** to ***** *** *** with ********* *** *** already ***** * ***** and ****** ***** ******* in ***** *******.

Comments (32)

Sean Nelson

Nelly Security | 06/18/15 02:21pm

Dahua = Great affordable products with terrible sales strategy and distriubtion channel control. The USA team seems to be as clueless if not more clueless than the Chinese team.

Undisclosed Integrator #1

In reply to Sean Nelson | 06/18/15 04:44pm

Is the USA sales team staffed or directly controlled by either imported personnel or overseas personnel? I'm wondering if there is a culture issue.

Frank Yeh

In reply to Undisclosed Integrator #1 | 06/28/15 04:38pm

This is all about culture.

In my limited interaction with Hikvision and Dahua, I get the impression that Hikvision has people who understand low-context culture, who have apparently been raised and/or educated in Europe or the US. I have yet to meet someone at Dahua who fits this description.

It would be interesting to hear if other IPVM members share this impression.

John Honovich

IPVM | In reply to Frank Yeh | 06/28/15 04:55pm

"I have yet to meet someone at Dahua who fits this description."

Agreed. Hikvision is much farther advanced in its 'Westernization' of its international sales force. Dahua seems to be aware of the challenge, e.g., Dahua Massive American Expansion but still struggling to get there.

Keefe Lovgren

IPVMU Certified | 06/18/15 04:31pm

Why has another company not purchased Dahua and set up proper distribution in the US?

John Honovich

IPVM | In reply to Keefe Lovgren | 06/18/15 04:35pm

Who can afford to buy Dahua???

"Dahua is worth $7 billion USD, more than twice what Canon paid for Axis."

I've argued the opposite that Dahua should purchase a big Western brand, e.g., Why Dahua Should Acquire Pelco

Undisclosed #2

06/19/15 02:44am

Not for nothing, but it's high time they hire that local yokel to edit copy. Or at least someone who knows that Texas is not O.K.

For real.

Brian Rhodes

IPVMU Certified | In reply to Undisclosed #2 | 06/19/15 02:50am

I think most of the country thinks Oklahoma is essentially North Texas anyway.

Source: I'm native

Undisclosed #2

In reply to Brian Rhodes | 06/19/15 02:54am

Texas at ~3:40, Oklahoma at ~6:00

Chris Dearing

IPVMU Certified | In reply to Brian Rhodes | 06/22/15 01:49pm

Were you thinking of attending any of these rodeos?

Could be a rare chance to interact with some Dahuan Corporate Execs. Assuming that this is not just an Automated Outlet deal featuring product by Dahua.

But based on the copy of the announcement it sounds like the real McCoy...

Chris Powell

IPVMU Certified | In reply to Brian Rhodes | 06/25/15 07:12pm

There are many Texans, particularly those from Austin, who consider Oklahoma to be southern Kansas, at best.

Brian Rhodes

IPVMU Certified | In reply to Chris Powell | 06/25/15 07:16pm

atta boy! lol.

Ross Vander Klok

IPVMU Certified | 06/25/15 04:10pm

I would go to something like this if they had it in Michigan and it was within a 30 minute drive. I would probably not stay for the "Farwell" portion of the event since it looks like it is practically a full day. That is a lot to ask of people time wise with no real draw other than lunch and a chance at “Lucky Draw”.

Undisclosed #2

In reply to Ross Vander Klok | 06/25/15 04:47pm

I believe the chance at the traditional "Lucky Draw" is in addition to the guaranteed gift, both of which I expect to receive in quadruplicate.

As Brian can no doubt attest, this road show is proceeding at quite a leisurely pace; a cattle drive from Oil City down to Big D might be quicker than four days.

Undisclosed Integrator #3

06/27/15 10:25pm

Yeah I thought the whole thing was a weird but was curious enough to sign up for the Dallas (aka Lewisville ??) "tour". We'll see how it goes. I have to say that all of the tours are fairly far from the nearest airport... whoever planned this did not take out-of staters into consideration.

Although, I have to say I have not received confirmation so I am a bit worried about making plans and then having to cancel them.

John Honovich

IPVM | In reply to Undisclosed Integrator #3 | 06/27/15 11:16pm

"I have to say that all of the tours are fairly far from the nearest airport... whoever planned this did not take out-of staters into consideration."

Wow, that is commitment! They better give you a prize :)

From what I can tell, it is at Automated Outlet's office / warehouse, not an actual hotel meeting room, like this is normally done.

The Lewisville location looks like a small office in a strip warehouse area:

Undisclosed Integrator #4

In reply to John Honovich | 07/01/15 02:42am

Toughdog?? Really?!?!

Sean Nelson

Nelly Security | 07/01/15 05:30pm

Had my first experience with "Dahua USA" the other day. A lady calls me up and leaves a voicemail explaining that she is looking for distributors in my area to sell Dahua products, she apparently didnt take time to look at our website before calling because she explained who Dahua was, she even spelled out their name for me. So I call her up, nice lady, but obviously was just a telemarketer of some sort who really had no clue. So she directed me to the "Southern Regional Manager". I explained how long we have been dealing with Dahua products, how we started out, and even explained to him some of the large distributors that we have purchased from in the past years. When I told him some of the names of these companies, he had no clue who they were and even a person with the slightest bit of knowledge would know these companies.

At any rate he finally said that he already has an exlusive distributor of Dahua products for Texas and Oklahoma, "Automated Outlet". I said how much of a foolish business decision it was to grant exclusivity to a small company such as this and block out everyone else, even potential larger buyers, in such a large market. He said "Oh well, they gave me a [purchasing] number and numbers dont lie".

So from what I understand, if you want to be an exlusive distributor for an area. All you have to do is have first contact with them and verbally give them a number and your good to go. Genius marketing strategy.

Undisclosed #2

In reply to Sean Nelson | 07/01/15 05:44pm

So from what I understand, if you want to be an exlusive distributor for an area. All you have to do is have first contact with them and verbally give them a number and your good to go.

Thanks. On the phone attempting to secure the entire L.A. basin. ;)

Michael Miller

07/01/15 05:56pm

If it is this hard to just buy the products I could only imagine how difficult the RMA process will be. Thanks but no thanks we will stick with Hikvision for cost effective products.

Undisclosed #2

In reply to Michael Miller | 07/01/15 06:09pm

Good point. Have you found Hik's RMA process to be reliable, time after time?

Sean Nelson

Nelly Security | 07/01/15 06:25pm

If they keep the RMA process like they have it now, they will rely on the distributor to deal with integrators/customers RMA issues for Dahua

Undisclosed Integrator #3

07/01/15 11:03pm

I actually have not received an acknowledgement from them although I registered twice now. Anyone else have that problem?

Undisclosed #5

In reply to Undisclosed Integrator #3 | 07/02/15 12:05am

When I registered they showed me a pop up that read "Registration Succeeded!" and that they would send me an email later, but I have not got it yet either.

Undisclosed #2

In reply to Undisclosed #5 | 07/02/15 01:37am

Undisclosed C & E, you are both more than welcome to print my unserialized ticket to present for dog and pony admission. Fortunately I signed up for all 4 shows. Here's a cleaned up untraceable copy, suitable for framing:

You can have the gift but, I call dibs on the Lucky Chance if it hits...

Undisclosed #2

07/20/15 02:02pm

It's a lookin' like a BBQ with all the fixins now:

Southern hospitality, Dahua style...

John Honovich

IPVM | In reply to Undisclosed #2 | 07/20/15 02:05pm

Is that from a new email or? Anything else new in it? Other dates? Cities?

Did they figure out that Oklahoma is not a county in Texas?

Sean Nelson

Nelly Security | In reply to John Honovich | 07/20/15 02:17pm

They obviously dont understand that Texas is a country in Oklahoma.

Undisclosed #2

In reply to John Honovich | 07/20/15 02:17pm

Tulsa's a BBQ. Dallas may be a Rodeo, dunno. They seem kinda serious about the whole 'bring your ticket' thingy. I guess as long as you can prove you're a Sir or Madam you can use this one....

Undisclosed #2

In reply to Undisclosed #2 | 07/20/15 05:04pm

Apparently they cut 2 hours off the tail of the presentation as well, now ending at 2:00 instead of 4:00, possibly impacting the q&a and lucky draw!

John Honovich

IPVM | 04/25/16 04:53pm

Update from Automated Outlet:

Just to set the record straight, we ended our relationship with Dahua in December. Too many issues to discuss on this forum be we determined it was in our best interest to end the relationship.

Martin Custer, President, Automated Outlet