Build Core Competence How Security Companies Challenge Economic Crisis

When will China's economic growth bottom out? A few days ago, Premier Wen Jiabao of the State Council said in an investigation in Guangdong Province that the unfavorable factors affecting the stable operation of the economy in the second half of the year are still relatively large, and it is still more difficult for steady growth. Zhang Ping, director of the National Development and Reform Commission, also stated that the domestic and international environment facing China's economic and social development is still complex and severe. Some uncertain factors may also bring new impacts. Economic difficulties may continue for some time.

With the global economy turning cold, many companies in the security industry have also felt the "coolness" of the market economy. From the "2011 China Security Market Development Report" released by us, we can see that the lack of international economic recovery in 2011, the shadow of the European debt crisis shrouded in the appreciation of the renminbi, and the domestic export processing security product manufacturers in the form of major OEMs have achieved significant results. However, the export of some security monitoring companies with stronger overall strength did not decrease. In terms of domestic policies, the “Twelfth Five-Year Plan” calls for the construction of a suitable city alarm and monitoring system application system and a joint development of urban and rural areas to increase security construction, so that public security and all parties in the community face increasing demand for security products. At the same time, it should also be noted that due to the lower growth rate of export security products in the domestic security market in 2011, the proportion of exports decreased. In 2011, the domestic security market was affected by the moderate tightening of monetary policy, resulting in increased operating costs, tight cash flow, and serious payment defaults. It is particularly difficult for Chinese manufacturing companies affected by the economic crisis. As a security headquarters, many security companies in Shenzhen feel even more profound.

In such an economic crisis environment, what kind of competitive advantage does a security company that is located in the production base of China's security industry face challenges? What competitiveness needs to be strengthened in the future to highlight economic sieges?

Security Capital's Corporate Competitive Advantage

As the first special economic zone in China, Shenzhen, which is also the procurement center for international security products, has formed its more mature and unique security market. The reason why Shenzhen security companies occupy half of the country also has its reasons. Recently, in the Shenzhen Security Enterprise Exchange Conference held by us, many security companies' discussion on the security advantages of South China Security also reflected the recognition of their own advantages by security companies.

In this discussion, many companies stated that from an internal perspective, based in Shenzhen, the company not only has an absolute cost advantage, but also has a centralized development team, an excellent after-sales team and a high reputation of the product; , The company has a superior product information exchange environment, developed logistics information and a wealth of industrial supporting facilities.

Shenzhen security companies encountered obstacles in the development of the market

The development of Shenzhen's security industry possesses market environment advantages that are unmatched in other regions. Shenzhen's security industry has also leveraged a variety of unique conditions in its growth process. However, after more than 30 years of development, the security industry in Shenzhen has become unrivalled. There is also a market weakness in the market that is difficult to eliminate. Due to the economic crisis, security manufacturing companies bear the brunt. In particular, security small and medium-sized enterprises, in addition to artificial pressure, rising exchange rates, rising raw materials, labor shortage, power shortage, poor financing and other practical problems, but also by the large companies to use their own advantages of the impact of market expansion. At present, the traditional security field, the market is weak, and the business has begun to move toward the era of meager profits, and the competition has become increasingly cruel. What are the problems faced by security companies in the face of internal and external crisis?

In the discussion at the exchange meeting, many companies concluded that the current obstacles to the development of security companies, internal lack of management optimization, easy to fall into the price war, rising costs, less sales profits, sales of some companies are also reducing, brain drain Serious, lack of high brand awareness and other aspects are the difficulties encountered by companies.

To build a strong competitive brand enterprise crisis

If 2011 is seen as a year in which China's security industry is developing at a relatively high speed, then 2012 will be a year of steady development of the security industry. However, it can be predicted that with the gradual relaxation of macroeconomic policies and the easing of the European debt crisis, the security market will face more opportunities in 2012, and will also enter the era of more intense competition, security companies may also usher in new A shuffle. How to not be shuffled out? How do you not feel at a loss during a crisis? In 2012, security companies must break the doomsday prophecy. In addition to having core product technologies and a solid team, companies must also have an important weapon—a dominant brand.

In the “2012 Strategic Planning Meeting” held by DeVille in the first half of this year, Hou Gang, the general manager of DeVille, stated: “Europe’s economy started to slow down in 2010. After a debt crisis in Greece, Spain and other countries in 2011, the global economy became more volatile. China's foreign trade processing companies, especially those based on export markets in Europe and the United States, have been severely affected, such as toy and resin handicraft enterprises in Guangdong, which have been severely hit, 70% of companies have closed down; 80% went bankrupt; the vast majority of manufacturers in the security industry, mainly export-oriented, experienced a sharp decline in their performance, and some companies fell by as much as 30%-40%.” Under a tough counter-trend, many companies are trying to emerge from the industry through brand promotion. . With the trend of the industry reshuffled by “the mountain rain is coming to the wind”, the era of the security industry’s focus on brand development has come.

So how do companies do brand building? Security companies in Shenzhen one after another support: After the brand's own cultural connotation, in the professional media, regional markets, professional exhibitions, word of mouth dissemination and other aspects of widespread promotion.

Conclusion

As technology continues to mature, product differentiation is shrinking, price wars intensify, domestic camera companies' profit space is constantly being squeezed, and the space for survival and development is severely constrained. Some industry insiders predict that after 2-3 years of market baptism and brand accumulation, prophetic companies will emerge and the market landscape will be rewritten. With the strong rise of domestic brands, the market must undergo a process of disorder and order, and many camera companies will fade out of the market stage. With the reshuffle of upstream manufacturers, channels have entered the era of meager profits, market resources will be transferred to strong brand agents, and weak brand agents will struggle. In order to minimize the impact of the economic crisis, brand building is imperative.