ZKTeco/ZKAccess Company Profile and Higher Margin Guarantee Examined

Author: Brian Rhodes, Published on Aug 30, 2016

A budget access manufacturer has entered the North American market, but it is not Hikvision or Dahua.

This player, ZKAccess, has recently set up shop as an a locally managed subsidiary in the USA, but touts the low prices and volumes from overseas hardware manufacturing and potentially can cost hundreds less per door than traditional manufacturers.

The low-price promise is so pronounced, they openly guarantee higher margins for installers:

In this note, we examine ZKAccess, their competitive position, and how they stack up against other access control manufacturers.

* ****** ****** ************ *** ******* *** ***** ******** ******, but ** ** *** ********* ** *****.

**** ******,********, *** ******** *** ** **** ** ** * ******* managed ********** ** *** ***, *** ***** *** *** ****** and ******* **** ******** ******** ************* *** *********** *** **** hundreds **** *** **** **** *********** *************.

*** ***-***** ******* ** ** **********, ********** ********* ****** ********** **********:

** **** ****, ** ******* ********, ***** *********** ********, *** how **** ***** ** ******* ***** ****** ******* *************.

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

Low-cost ******

*** **** ************** *** ******** ** *** *****. **** * product **** ******* **** *********** *** ******** **** *******, ** a **** **** ** ********* *** *****-****** *******, ******** ** generally ****** ***** **% - **% **** ********* **** ********** brands.

*** ****** ***** *** ******* ***** ********* ******-*** ** *** comparatively **** **** ** ****** ******* ****. *** *******, ***** the ***** ** *********** *********** ******* ********* ***** ******* $*** - $*** *******, ** **** ****** ***** ****** ** ****** as $*** *******, ** *** *** ** **** ****** ** our*** $*** *********** ****** ************. ******* *******, ******** ** ** ********* ****** **** **** controller ******* ** **** ** $***, ***** ********** ***** **** HID ** **** ***** **** ***** ** ****.

**** **** ********** ** *** ******** ***** ** ***** ** a *** ******, *** ************, ***** ***** ***** *** **** support *** *****. ** ******** ********* **** ****** *********** **** ****** *** ****** *** ********* ****** ** *******, ZKAccess *** * **** ********** ** ***** ** *** **.

ZKAccess ******* / ***** *******

*** *** ** ************* '***'*********** ***** *** ****** ******* *** ** **** ** ************* how *** ******* *** ******. ** ****, ******** *** **** off ** ********, ***** ******* ******* ****** ** ** *** *****'* ******* ************ ** ********* readers ** *** *****, *** ****** **** ******* **+ ******* worldwide.

*******, *** *** ** ******, *** ***** ** ** **** office *********** ** '************* ********* *** *******' ** ****-**** ** ***** ******* ********* ***** ******* ******* * ** ***** *****.

******** ** ******* ** **************/ '***** *****' ************ ********, ** the ******* ***** ********* *****, ***********, *** ******** ** **** hardware *** ********. **** ******* **** ** ***** ** ****-******, low **** ***** *************, *** *** * ********* ****** **** regionalizes ********/ ************** *** ******** ** *** ** *********.

No ******* *** **** ****** ** **** *******

*** ** ***** ******** ******* ********* ******* ******* ** ***-** division ******* *********. ***** *** ******* ** ***** ******** ******* versions *** ** ****** *********,******** *** ****** * '***** ******'******* *** ***** ******* *** ******* ** ******, ****, ** other************ ******** *********:

"** *** *** ******** ******* *** ****** *-******** *****, ** will *** ******* *******, ****** ******** ********** ** *** ***** assistance, *** ********* ***** *******. ***** ******** **** ******* ************ websites *** **********, ****, *******, *** *********** ** **** ******** illegally *** ******. ** ********, ** ******** ******** **** *** distributed ** *** ** *** ****** ***** **** ******* ********, functionality *** ************** ** **** ***** ************. *** **** *** to ****** *** *** *** ******* ******** *** ************** *** need ** ** *** **** ** ********** ** ******* ******* who *** ********* *** ******** ***** *** ******* ******** *******."

Controller ****** *******

** ***** ** **** ***********, ******** ****** *** ***** ******: the *********** **** **** ********** '**' *** *** *********** ********* ****** ********** *** ****** ****** '*****' *****. ******** ********* *** ******* ********** ******* *** *** as:

"** ** * *********** ****** ******* *****. *******, ***** *** additionally ***** & ***** *********** ********* ** *** ***** ******. InBio ******** **** ******-******* ****** ***** *********** ************ ********** *** **** *** *** ***** *****-***** biometric *******, ******** ********* **** ********* ******** **********."

******, ******** ** **** ****** *** ********* ** ***, ***, or **** **** **** **** ******* ***********, ***** ********, *** buttons, ******* (****** **** ** ************ *** ****) *** ********** software.

*** *******, *** **** **** '*** ****' ***** ** ******-********* **** ~$*** ****, ** ~$*** ****** *****. ************ ***** *********** ~$*** ****, ** ~$*** ****** *****.

***** **** ****** ******* *** ******* ***********, **** ***** *** TCP/IP ** ****** *********, ******* *** *****, **** *********** ****, have *** ******* *** *** ******, *** **** ** ***** two ******* *** **** ********.

Biometric ******* **. ***********

********/ ** **** ******** ******* ***** ** *********** ********* *******, including * **** ************** ****** **** **********, ***** ******** * *********** ******, * **** *********** ******, and *** ***, *** * *********** **** ****** ** * single **** *** ~$*** ******.

*** ** ***** **** ******** **-*** ******* ***, ** ** is ********** **** **** ****** *******, *** ** * ***** far ***** *** ******* $*,***+ ***** ** ***** ****-****** *******.

** ****** ****** ******* ***** ***** ** ********* *****, ******* from '****' *********** ******* ** *****-***** **** **********/****** ******. ** a ******* *****, *** **** ** **'* ***** *** ***** 50% **** **** *********** ***** **** ****** **** *******, ***, and ******.

*******, ***** *********** ** **'* ********* ***** ** ********* **********, integration *** ** *********. *** *******, ** *** ******* ******* the ******* ****** ******* ** ***** ****, ******** ******** ** ***** ******* ** *** ** ****** that *** *** ********* ****** *** ****.

***** ****** **** ******** ** ********** *********** ** ******** ***-****** support *** **** *******, ******* '*********' ******* *******, *** *******-**** fingerprint *******.

Distribution ************

****** ******-******** ****** *****, ** ****** ***** ******* ****** ******* typical ******** *** ******** ******** ************. ***** **** ***** ** easier ** ******, ****** **** ****** ******* ***** ** ********** the ********** / ****** ****** ****** ** ****** *******. ** Access ****** ********** ********* *** ****** ********** *******.

Advanced ******** ******

******** ******** ******* ************* ** '**** ***' ******** ********* ******* from******* **** ****** *******. *** *******, **** **** ********** ****** ******* ** ***** two ******** ****** *** ****, ********* ******** ** ******* ********* for*** **** ************** ******** ********.

** ******** ** ***** ******* ********** ****** ****** ********, ******** supports***, ****** *** ************ ********, *** *** ***** ******* ********** ***** ** ******** ** ** *** ******.

Weak ***** ***** *******

** ***** ** **********, ******** *** ** ***** ***-***** ************ for *** ********** **** *** ***** ****** ** ***** ******************* * ***** ********** ********.

*** ******** ** **** *** **** * ******* ***** ******, but ** *********** ******* ** *** ******* *** **** * MySQL ********. *******, **** ******** **** **** ****, **********/**** **********, reporting, *** ******* *** *********. *** ****** ******* *************** ******** ********* **** *** *******, ******** ******* ** *********** ******* to ******* ******** ********.

** ***** ************ ******* ******** ***** ********** *** ***, ***** management, ** ******* ******** *** ******* *** ******* ******** ** a ******* '*** *********' ***** *** ***-***** *********. ******* ******** is ***** ************* *** ** *** ******* ********** ****** ******, the ******* **** **** **** *** ******* **** ** ******* these ********** *******.

** ********, ** ***** ****** ********* ******* ** ****** ******* C3 ** ***** ***********. *********, ******* ******, ****, ** ****** ****** ************** ***** * *********** ** ******* **** ** ******** ********, ZKAccess ** *********** *** *********** ****** ** ***** *** ********.

Lacking **********, ***** ********

*********** *** *********** ******* *** *******, ******** ******* *** **** appealing ** *****-****** ********* *** ** *** **** '***** ********' typically ********* ** **** ********* *********. *** ***** ** *** device ******* *** *** ********** ***** *********** **** * **** cap ** ****** ****, ******** **** ** *****-**** ******* *** usability *********** *** ****** ********** **** ****** **** *****.

** ********, ******** **** *** ***** *** ***** ****** ** managed ******* ******* ******* *** *******, ******** ******** ***** ** they **** '** *** **** ******'.

Comments (10)

Amos Wipf

09/03/16 01:41pm

Good review. Has anyone actually every installed one of these systems? One of our branches overseas is looking at using ZK.

Thumbnail pp 5

Brian Rhodes

IPVMU Certified | 09/15/16 05:51pm

ZK Access contacted us with feedback on this post. They stressed they aren't just a 'price play', but they also offer multiple access products such as turnstiles, Fingerprint/BLE Standalone locks, LPR and face rec cameras.

ZK also explained the F7 ($100) fingerprint reader we tested has been EOLd for several years and has been replaced by model F18-ID. As such, newer models support 'liveness detection', so that weakness was dropped.

Future updates/posts on individual ZK Access part numbers are pending member feedback, and if you have interest or a request, feel free to comment below.

Thumbnail 201511 baud sgpp

Baudouin Genouville

10/11/16 02:07am

China based ZK Teco who claims to be the world's biggest manufacturer of biometric readers in the world

I am from Suprema (one of the world Leaders in Biometrics for Access Control and TnA). Seriously, I am not here to pick a fight with ZK but I always make a point to check my sources/numbers. In that sense, I expect the same attitude from others (I am not talking about IPVM here who gently used the polite "who claims to be").

Did you get any number from ZK regarding them being the world biggest manufacturer? That would be interesting to know:

- What is the company total turnover in 2015?

- What is their turnover with Biometrics readers in 2015?

- Portion in China

- Portion in Rest of the world

- Or do ZK talks in terms of number of shipped products (then how many they ship)?

- Or ZK talks in terms of the size of the company (then Morpho or DormaKaba are way bigger)?

I would be interested to have ZK point here. Because according to IHS report "MS Biometric" (MS stands for Market Share):

- ZK is even not in the top 10 ranking in Americas

- ZK is far from 1st position in EMEA

- ZK is far from 1st position in APAC

I don't want to give too much information regarding IHS Access Control Database. If you want it, you have to inquire here: https://technology.ihs.com/Research-by-Market/551540/security-technology

BTW: I recommend this IHS purchase because to me, this is a good complement to the information that can be found on IPVM.

Thank you,

John Honovich

IPVM | In reply to Baudouin Genouville | 10/11/16 11:26am

Baudouin,

Thanks for the feedback. I asked Brian to push back on ZKAccess about this.

My hypothesis is that this is a units vs revenue issue. IHS ranks on revenue, so even presuming they got everyone's revenue correct (almost impossible given these are segments of companies), ZKAccess would likely be low on revenue since their ASP is so low but high on units since ZKAccess reaches a much broader market at its far lower price point.

John Honovich

IPVM | In reply to Baudouin Genouville | 10/12/16 11:23pm

We had a discussion with ZK Access. Basically, they have no data / evidence beyond (and I am paraphrasing here) "Hey we make a lot of products." So take their 'biggest' claim with a grain of salt.

Thumbnail 201511 baud sgpp

Baudouin Genouville

10/12/16 02:50am

Thanks John and sorry Brian to add you some additionnal workload! This is for the good sake of access control ^^

Another point is that IHS only count the devices that are related to access control.

So that means that if the devices were sold:

- For access control only

- For access control and Time Attendance

then the revenue counts in the IHS DB. It does not count if the vertical is T&A only.

The strong point of ZK (congratulation for that!) being Time & Attendance, all the devices sold for that specific Segment are not taken into account by IHS.

At Suprema we filter out these 100% T&A sales, based on IHS request, this shall be the same there.

Regards,

Baud

John Honovich

IPVM | In reply to Baudouin Genouville | 10/12/16 09:56am

all the devices sold for that specific Segment are not taken into account by IHS.

How does IHS ensure this? I've seen the same pattern / claim in video where IHS claims to segment out various video categories. In practice, it is very hard to do and you need to trust each manufacturer, agree/disagree?

Thumbnail 201511 baud sgpp

Baudouin Genouville

10/12/16 10:52am

John, we have discussed about that already before and extended the problem to OEM (that shall not be counted as well)

Yes, I do agree that you cannot take the numbers from reports (in general) as exact state of the market but it helps giving trends.

This is an individual responsibility to crosscheck numbers with other data you can glance here and there. Unfortunately sometimes data is hard to find as not all companies publish their yearly Financial report.

BTW: where is your 2015 financial report ?

:)

Undisclosed Integrator #1

10/12/16 11:45am

ZKAccess does integrate with Starwatch SMS from DAQ Electronics, and it is a pretty smooth integration as well. (So does Lenel in case you have never looked at DAQ's stuff).

Thumbnail ray background removed ns

Raymond Shadman

IPVMU Certified | 05/20/17 03:06pm

eDigitalDeals in their 2017 solutions has been offering ZK Access integrated with the Milestone XProtect VMS via a 3rd party software integrator. This integration, although more costly than the direct XProtect Access through Milestone, actually saves huge total project cost because of the low access hardware cost. When compared to ISONAS, Paxton, and 3xLogic infinias using a direct integration to Milestone XProtect, the ZK solution offers the same features and more, including the ability of adding additional custom fields for database searching and sorting.

ZK integration is also available into other VMSes such as OnSSI and others. LPR functionality as well as asset management can also be integrated into the VMS.

Contact eDigitalDeals for more info.

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