Market Situation and Challenges of Anti-theft Alarm Industry

From 2010 to 2011, the burglar alarm market as a whole maintained a steady upward trend, with the growth in the mid-end market significantly, the high-end market slightly improving, and the low-end market gradually shrinking. This shows that the quality of China's anti-theft alarm industry is gradually rising. With the vigorous development of domestic enterprises, the proportion of national brands in the market has already left international brands behind. At present, in the market share of burglar alarms, 40% of the output value is created by product sales, and 60% of the output value is created by security engineering services. In the end, what is the market status of the burglar alarm industry? What are the challenges?

Since 2000, China's anti-theft alarm industry has developed rapidly. The sales volume and total sales of anti-theft alarms have risen at an annual rate of 30% to 60%. In 2011, the sales volume and total sales volume of products increased by about 30% year-on-year in 2010. Conservatively, it is estimated that 2012 will continue or exceed this growth rate. However, in 2012 and beyond, the challenges faced by the anti-theft alarm industry have become increasingly severe. We can simply attribute these challenges to three aspects: rising production costs, increasing market risks, and chaotic market order.

The rising cost of production is the primary issue facing the burglar alarm industry. In recent years, the prices of various raw materials have risen sharply, making it necessary for companies to invest more in raw material procurement. At the same time, the cost of labor is also rising. In 2010, the minimum wage in Shenzhen was 1,100 yuan. In April 2011, it was adjusted to 1,320 yuan, and now it has been adjusted to 1,500 yuan. In recent years, the speed of adjustment and the magnitude of the adjustment have set records. The rise in labor costs has been aggravated by companies with limited profits.

Followed by the pressure from the global anti-theft alarm market, the global economic downturn makes the development of the anti-theft alarm industry more difficult. Although the overall market for burglar alarms continues to expand, the risks and challenges continue to increase. However, in the international arena, the debt crisis in Europe has not yet seen a turn for the better, and the United States has not yet shaken off the impact of the economic crisis. The economic downturn of the world's two largest economies will have a significant impediment to the export of alarm companies. In China, the real position of real estate in the anti-theft alarm industry, under the government's vigorous control, has gradually slowed down, and the market capacity has gradually shrunk. The government-led protection housing project can be described as a tough bone for the anti-theft alarm industry.

In addition, the chaotic order of the anti-theft alarm market also poses a threat to the continued prosperity and development of the industry. The most important thing in this area is insufficient protection of intellectual property rights, and counterfeiting is an endless stream. Although copycat products and counterfeit products can also generate considerable industrial output value, their inherent overdraft industry development potential and disruption of fair market competition will eventually jeopardize the healthy development of the entire industry.

Anti-theft alarm industry development opportunities and trends

However, challenges always coexist with opportunities. The increase in production costs, the increase in market pressure, and the chaos in the industry order are obstacles to the development of anti-theft alarm companies. However, they are also opportunities for development. Breaking through barriers means that they can obtain broader results. Expansion capacity.

First of all, the rising cost of raw materials and labor will allow companies with low quality and low added value to be gradually phased out, thus freeing burglar alarm companies from the quagmire of price warfare and investing their energy in improving quality and service. This will boost The industry upgrade gradually forged a number of domestic brands that competed with foreign security giants in the high-end market.

In the international situation, the economic weakness in Europe and the United States is a detrimental factor, but the turmoil in the Middle East and North Africa has undoubtedly increased the demand for security equipment. The Asian-African region has always been an important market for China's security trade. The unstable social order will further expand the security industry's market.

In China, the regulation of real estate and changes in the market make it difficult to obtain the best results from traditional marketing models. The new operating model emerges. At present, some domestic large-scale security companies have begun to vigorously deploy a network of security operation services, which will become the latest growth point for anti-theft alarm systems.

Development based on trends

From the current analysis of China's anti-theft market, with the development experience of the international anti-theft alarm industry, we can draw a conclusion: The domestic anti-theft alarm industry will develop towards the trend of standardization, integration, and networking.

Standardized development

With the further development of the anti-theft alarm industry and the further opening up of the market, it has become a trend for more professional enterprises to participate in the internationalization of competition in the development of alarm companies. This specialization has been measured by international standards.

At the same time, standardization is also a fundamental requirement for the integrated development of the alarm industry. The development of system integration requires that different anti-theft products have matching standards to ensure the application of the entire system. This standard cannot be just a corporate standard, nor can it be limited to national standards. To expand a larger market, it is necessary to have the vision and boldness of cooperation and competition with foreign brands, and taking internationalization standards as the guideline is its necessary threshold.

At present, many companies are actively making efforts for internationalization. As the leading company in the alarm industry, Longhorn takes the lead in introducing the ISO9001:2000 quality management system and the ISO/TS16949 certification system in the industry, and actively introduces ISO14000 environmental management and OHSAS18000 security. The health management system takes the lead in standardization and specialization.

Integrated development

With the segmentation of the security industry's application market and areas, security companies have begun to shift their focus from focusing on sales of single products to paying more attention to providing customers with complete solutions. Security industry from a single product to integration is the inevitable result of the development of the industry.

Integration includes the integration of a single system, that is, a system consisting of a series of products. At the same time, there are multiple system integrations. The multi-system integration has a whole set of large systems composed of numerous single systems and is also integrated by different security systems. The integrated development of the industry can integrate the products, meet the needs of customers and enable their products to achieve integrated marketing. It is a win-win situation between customers and enterprises. The integration of the security system enables the connection of various systems through the network, so that the work efficiency can be greatly improved, and at the same time it can also save the waste of resources.

In the future, the anti-theft alarm industry will be fully integrated with digital detectors, all-digital network platforms, and multi-angle control methods. It will integrate with access control systems, intercom systems, and monitoring systems, and will ultimately be integrated with computers. The system, that is, all security subsystems are integrated into the integrated alarm system under the computer management platform.

Network development

In the past, network bandwidth has been a major bottleneck in the development of the smart home industry in China. The average speed of China's Internet speed is only 1.774M, ranking 71st in the world, mostly 512K to 2M, and the access rate lags far behind the world's advanced level.

On July 1, 2010, the State Council announced the list of the first “triple-playing” pilot regions (cities), marking the formal opening of the tri-fold network. Tri-network integration refers to the three major networks of telecommunications networks, computer networks, and cable television networks through technological transformation, and can provide integrated multimedia communications services including voice, data, and images. The triple play will enable smart homes to have a more convenient and efficient network transmission environment, which will surely promote the upgrade of the entire smart home industry. Needless to say, burglar alarms will usher in more rapid development after the integration of the three networks in the future.