#1 Manufacturer Complaint Revealed 2013By: John Honovich, Published on Sep 12, 2013
Low-cost competition, particularly from China, is overwhelmingly the #1 complaint and the #1 fear of video surveillance manufacturers we surveyed. In this report, we share their concerns and analyze them.
Manufacturers are increasingly feeling pressure to cut prices:
- "Saturated market place, costs driven through the floor."
- "Accelerating lower cost pressures decreasing profitability while increasing acceptance of IP video. This is happening many times faster than the same trend in Analog."
- "Instead of solving problems with proper technology they patch things due to limited budgets"
- "Decreasing budgets, doing more with less, may be forced to compromise on quality and being tempted by promises that do not deliver true benefits"
They are fairly clear who is driving this:
- "Chinese manufactures are getting stronger with improved performance levels at very aggressive pricing"
- "Price leading by Chinese manufacturing"
- "Strong competition from Asian companies."
- "Chinafication: western markets being taken over by efficient and technology hungry Chinese manufacturers. The huge & low-cost manpower availability, combined with having evolved beyond 'copying technology' may allow China to take over a lot of Western manufacturer market share."
However, at the same time, they are objecting to the quality of the offerings:
- "The influx of cheap low performance products."
- "Customers who "accept" crap solutions with crap service."
- "People are comparing apples with pears. Everyone claims to have the best price AND quality."
- "Low-cost manufacturers going direct with similar spec, but different quality products."
- "Constant pressure to increase feature sets and specifications, while unit prices are falling."
- "Companies can sell sub-par products,and many customers would not know that there a big differences."
- "Dwindling budgets and cutthroat competition by far…causing resellers and end users to focus mainly on price rather than on the solution that addresses the problem(s)."
- "We're faced with trying to offer high quality equipment/services when our customer base does not want to pay for the higher quality. There is significant pressure towards lowering our prices and this can only be done if we lower the quality"
IPVM has tested a number of low costs products recently including:
- Dahua IP Cameras Tested - the OEM behind many of the lowest cost IP cameras around the world
- Hikvision IP Camera Tested - the controversial "#1" manufacturer in the world, OEM to many and increasingly selling international under their own brand.
- Lowest Cost HD Kit Tested - 4 HD IR camera and 1TB NVR for just $699 from Q-See, a Dahua OEM
- Lowest Cost Outdoor IP Cameras - survey results of options from around the world
Of course, this matches up perfectly with integrator's #1 IP camera problem - high cost.