In the era of solutions, how do Chinese security companies expand overseas markets?

- May 10, 2018-

Foreword: From the perspective of the current global security industry, China Security has become the main force of the global security industry. It has actively explored overseas markets and achieved a steady increase in equipment shipments and solutions in the global market. Market demand and favorable policies provide good opportunities for Chinese security companies to “go global”, and the brand's own strategic layout is directly related to the company’s overseas revenue performance.


After the Spring Festival in 2018, listed security companies successively announced the 2017 annual corporate performance report. From the report, many companies have achieved considerable growth in their overseas business performance. The growth of overseas revenue mainly comes from three major drivers:


First, there is a continuous security demand brought about by the international counter-terrorism situation. Second, the country actively encourages enterprises to promote the “going out” policy. Third, the experience of Chinese security companies in overseas markets has become increasingly effective.


Overseas market strategic layout focus adjustment

Looking at China's security companies in the past decade's "sea" process, has experienced four stages of strategic focus adjustment: the first stage of the general use of export sales agents and "own brand production + OEM" production mode; In the second phase, through price advantages, it gradually accumulated overseas commercial resources, opened its localization layout, gradually established overseas branches and opened overseas markets; the third phase extended with the model of “sales of products + solutions”, and transformed itself from simple trade exports. A higher level of technical output and capital operations, through the establishment of a number of overseas branches and subsidiaries to increase more localized marketing services and support; the fourth phase to follow the trend of globalization, focus on the accumulation of core technologies, strengthen the brand The construction will continue to strengthen the ability of enterprises to provide users with fast, high-quality end-to-end products and solutions.


The large and small security companies in the industry, in addition to several giants have developed to three or four stages, most other small and medium-sized security companies are still struggling in the second stage, but everyone has a relatively clear understanding of the development path of overseas markets: The era of simply offering products has passed and the overseas security market is entering the era of solutions.


Maggie, the overseas marketing director of Shenzhen Youtepu Technology Co., Ltd., said: “Customer needs are no longer fragmented, and they no longer only focus on product features and parameters, but hope that security companies can provide more according to their business needs. With a total overall solution, more and more overseas local agents want us to provide them with complete solutions."


Gong Jian, the international marketing department of Zhejiang Yushi Technology Co., Ltd. believes that this mainly stems from the shift from "price" to "value" for overseas users. He took Pingan's industrial plan as an example to show that if only the end-to-end products are packaged into the sea, people will be trapped in the low-priced competitive Red Sea in the form of "fish."


Establishing the value of products and services of enterprises in overseas markets is the common goal of “sea-going” security companies. This is a long-term proposition. When it comes to the era of solutions, how can companies achieve this?


Maggie believes that under this trend of demand, China's security companies need to go out and go to their local markets to listen to their customers' specific project needs, so as to provide targeted solutions to customers.


Yu Jian Science and Technology Gong Jian said that "cutting the foot and fitting" and "tailoring" have completely different results. China's security companies, different from their overseas counterparts, need to shoulder more of their missions and build the safe city of China in the past decade. Ideas and norms are disseminated, and the ecology and pattern have been established. What the customer perceives is “value”, not just “price”.


Chen Lei, marketing manager of Zhejiang Red Apple Electronics Co., Ltd., said: “We use more mature solutions (including personnel and some successful cases and projects in the current security market) to promote to overseas markets, including the application of high-end technology and overall intelligent solutions. The deployment is effectively combined with existing solutions to form a novel solution.”