Vivotek Talks About Taiwan, China, Bans, AI And Business Development

Published May 10, 2019 11:59 AM

Vivotek, Taiwan's biggest manufacturer by revenue, did not have a booth at Taiwan's Secutech 2019 (which we are covering). However, marketing/communications execs Shengfu Cheng and Bridgette Pan did an interview on-site with IPVM (which has been condensed & edited).

Topics covered:

  • Why they did not attend Taiwan's largest trade show?
  • What their reaction was to IPVM's latest favorability results?
  • How they view integrators concerns about being dated or poor marketing?
  • What they are doing about facial recognition and AI?
  • What impact do they see from the expected Taiwan Hikua ban?
  • What impact has US NDAA Ban had for them?
  • How they are handling the potential for a Huawei Hisilicon ban?

** *******'* ******* **** ********:

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** *** ****** ************ ******* ***** '****** *** ********', **** ******* complaints: *** *******, **** **, **********:

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** ************ ******* ******* ******* *****/********* with **** *********:

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** ******* *** ********* ********* ********* ban ** ******* ********* *** ********* Vivotek:

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** ******* *** ***** *** *** the **' **** *********/***** *** **** benefit *******:

***, **********, ******* ** *********** ** Taiwan. *** ** ***** **% ** our ***** **-***** ********, ***** ****** makes ** **% ** *** ***** business [*.*. ** ******* ********* ***** for *** *** ***** ** ***** 16% ** *******'* *******]. ** ******* this **** *** ********* **** **** 50%, ****** ***, ** $** *******. The ** ****** ******* *** **% growth **** ****. ** **** ******* our ********** ******** *** ****** * new ******* ** ****** **** *******. [Vivotek ******** ** ******** *** **** units ** ********]. ** ** ******, the ***** *** **** ** ******* Taiwanese *************.

[****: *******'* ******* ******** **% ** **** *** *** **** ********* ***** **% to $**** ***** ****, ******* **** to ********* ****** ******** ******* **** $*.* billion  [**** ** ****** *********]** **** $* ******* ***** ****]

** *******'* *** ** ********* *****, which ***** **** ***** *** ** ********** ***:

** ** **** ******* **** ********* chips ***** *** ** **** ******** platforms ****** *****, ****'* * ****** for **. ** ** *****'* * conflict **** *** ****, ** ****** it's ** *****. ** **** ********* as **** *** **-***** ****.

[****: *** ***** **** *** ***** that *** ********* ************** ** *** *** ***** *** ********* ******* ******* **** HiSilicon ***** ** ****** ****** **** ******* ** *** ** government. ** ***** ** *** *** * ******, ********* **** *** ** ****** among ********* ************* *** ** * good ****/***** *****. * ******* ********* was ***** - * *** **** us *** ******* **** "**** *********" chips.]

Comments (7)
JH
John Honovich
May 10, 2019
IPVM

Charles, good interview.

Some thoughts:

  • Interesting to see how much their ODM business is growing. They have ODMed for many years but it is becoming a bigger part of their business (e.g., fast-growing Verkada is using Vivotek).
  • Related, we see a lot of Western manufacturers now emphasizing proudly not 'made in China' with Taiwan being a common source (Dynacolor is the other frequent Taiwan ODM/OEM, e.g. see Mobotix Move).
  • Vivotek remains really bad at sales and marketing. It is fascinating to see how well Hanwha Techwin has done growing branded sales while Vivotek has not. Not sure if Vivotek has the will or skill to execute such a branded business expansion.
  • Regardless, especially with AI and cloud emerging, there is an unmet demand in the market for higher quality, non race to the bottom camera offerings.
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Chris Lanier
May 10, 2019

As a rep firm for Vivotek, this will appear biased, but our decision to partner with Vivotek 9 years ago had to do with their commitment to quality, that they have been manufacturing IP technology since 2000 and their quiet inroads for private labeling for some very major brands. Because they are so engineered minded, yes marketing has been minimal, however as dealers explore and try their extensive lineup, Vivotek gains loyal followers. Given the market sensitivity to cybersecurity, we are very pleased Vivotek has chosen to focus on this aspect of their development.

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UM
Undisclosed Manufacturer #1
Sep 16, 2019

I noticed the report stated the cameras do not contain the HiSilcon chip. Do their 4 and 8 channel recorders contain it?

Avatar
David Liu
Sep 17, 2019

Hello Undisclosed Manufacturer #1,

For VIVOTEK's NDAA compliant model list and transition plan, please see our NDAA page at :: VIVOTEK ::. Thank you.

UM
Undisclosed Manufacturer #1
Sep 17, 2019

Thank you David after viewing your link I see that they are not NDAA compliant.

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David Liu
Sep 17, 2019

No problem. FYI, we've been working on new platform to make our NVR's NDAA compliant.

UM
Undisclosed Manufacturer #1
Sep 18, 2019

That’s great news. I’ll contact you regarding an opportunity.