As Major Projects Continue to Keep the Security Protection Market Strong, Tier-2 and -3 Cities will Become New Growth Points
BEIJING, Feb. 11 /PRNewswire-Asia/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on the security protection market in China.
In 2008, the world financial crisis did not cause a big impact on China's security protection industry in general, that although export enterprises suffered considerably, the domestic market remained solid. Currently, there are less than 2,000 export enterprises in China's security protection industry. For most of them, overseas sales account for less than 20% of their overall product sales. Thanks to some major projects promoted by government, the security protection market maintained a 23% year-to-year growth in 2008. During the Beijing Olympic Games, over $300 million was spent on security protection system building in Olympic stadiums and supplementary services facilities including entry and exit management control systems, real time control systems and emergency response systems. A number of major large-scale projects under the government initiated community scheme in "building a harmonious society" have also greatly pushed forward the demand for security protection products. These projects include the "Safe Cities Project", "3111" Pilot Project and "A Stronger Police Force Through Science and Technology".
The overall security protection market in 2008 featured rising sales, and falling prices and profits. The wide rises in sales volume came from the growing market demand in China. The government became the main driving force for the growing demand. Falling prices were mainly due to the seriously disordered competitions in the industry. As there are more and more small-, medium and large-sized companies in the industry and business information becomes more open, competitions have intensified, and price cuts have become the primary means for enterprises to increase sales. Falling profits were mainly a result of various factors, including reduced export tax refund, Yuan appreciation, increased labor cost, rising production material expenses and monetary tightening. These factors further squeezed the profit margin for enterprises.
M&As and Integration Will Become the Main Trend While Demand Will Continue to be Strong in 2009
As China's security protection industry is growing at a tremendous speed, big multinational security protection enterprises are optimistic about the Chinese market, and have started to build upon their capital strength to acquire existing security protection enterprises in China in an effort to take up market shares. Sony is now shifting its online video camera manufacturing center to China. Samsung has made the Chinese market a center for its video monitoring businesses. GE and other international enterprises have increased their attention to the Chinese market. H3C, AVINFO and local enterprises in China are also developing fast. As a sunrise industry, the security protection industry has become a new economic growth point and a very important force in the economic field in China.
As Beijing held the Olympic Games in 2008 and Shanghai and Guangzhou to be respectively the hosts of the World Expo and the Asian Games in 2010, these big events will generate a rapidly growing demand in China's security protection market. The security protection industry is expected to top 140 billion Yuan by 2010. Such a fast growth trend can also be verified from foreign security protection firms' future roadmap. For example, BOSCH has made Asia/Pacific and China the key areas for developing its global security protection businesses. Over 25% of its security protection businesses are expected to come from Asia in 2014. AXIS has set a 50-fold growth target in China for the next 5 years. Tyco has also said that it will maintain high input of funds, T&D force and talents into the Chinese market, and seek to cooperate with local firms and strengthen its manufacturing in China. Tamron will also continue to step up its sales in China.
Tier-2 and -3 Markets Will Become New Growth Points
As the real estate market shifts between cities and the Safe Cities Project deepens, security protection vendors will gradually shift their attention to the highly competitive Tier-1 and -2 markets to the Tier-3 market. Medium-sized cities and inland regions will become a new focus of competition. Meanwhile, smart, integrated and digital products will become the mainstream production and consumption trend.
The application market has already entered an era of industry application segmentation. Security protection products equally need customization and segmentation. Different industry environments, scenarios and users with different purchasing powers require different security protection products. Bank counter mentoring, for example, requires a clear display of banknote values and a complete recording of banknote counting to resolve potential disputes. DVR picture quality will be a priority requirement. Cashbox monitoring requires 24h protection, comprehensive and reliable detection means and anti-destruction and online alarm functions, although it does not require real time pictures with general resolution. Enterprises and consumers are becoming more mature and more practical in this stage of the market. Services will become the key for security protection enterprises to build their corporate brands. Meanwhile, enterprises will also be inclined to adopt multi-brand product and services strategies for different market segments so as to leave a clear and focused brand image in consumers' minds.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
