E-commerce price war is burning anti-theft alarm?

As Sun Weimin, Vice Chairman of Suning Appliance, “orders down”, a “biggest, most fierce, and most comprehensive price war in the history of China’s e-commerce” has recently started between Suning and Jingdong Mall. Regardless of the pros and cons of the price war, the impact of the e-commerce price war on the market is all-inclusive, including security monitoring products. Recently, the topic of e-commerce development in the security industry has attracted much attention. The road to security e-commerce has been for some years. Anti-theft alarm is the eldest son of security. Does the price war affect it?

Impact of E-Commerce Wars on Burglar Alarm E-Commerce

Access control systems and burglar alarms are widely used in real life, and the installation and use of burglar alarms are convenient. As long as detailed instructions for installation methods and precautions are attached, users can basically install and use them. According to Taobao data, sales of anti-theft alarms are more optimistic. In addition, the installation of the access control system is more complicated than the anti-theft alarm system and requires the installation of professional technicians. Access control systems and burglar alarms have a high civilian rate. Manufacturers should focus on channel innovation, brand promotion and agency distribution.

In many security products, the e-commerce development of building intercom products is not smooth, but even if there is no sales, it is also a promotion of brand products, reaching a certain degree of publicity. In short, the road to e-commerce for security products is still very long. Security vendors need to develop an e-commerce platform based on the characteristics of the product, combining market, technology, and consumer psychology. Therefore, the impact of the e-commerce price war on the anti-theft alarm market is not great.

Anti-theft alarm market analysis

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.