Observation: How do non-standard competition in the security industry – security, non-standard competition – Security Industry

With China's rapid economic development, all the modern hotels, shopping malls, office buildings erected in the city, these intelligent buildings for Security Become increasingly demanding, making applications more and more extensive security products, new demand for more and more points, especially the Government to promote this year's "emergency system", "peace community" " Safe City "," 3111 "project and other major projects to promote public security and the community on security products, heating demand.

Data show that in 2000 only 25 billion yuan output value of China's security, after "15" during the rapid development in 2005, more than 90 billion yuan output value, output value reached 118 billion yuan in 2006. 2007, 2006, on the basis of continued growth, has reached 145 billion yuan. Expert Expected in the next few years because of reduced demand for traditional security field, security industry, the overall growth rate will slow down, to 2010, China Security will reach 200 billion yuan output value. Good prospects for the industry was encouraged by many, many Enterprise Eagerly, anxious to get the cake from this huge market share of as much as possible in a.

Although the development of the industry's very promising, but there are many in the industry believe that: It is now the industry is not a sound development mechanism, the lack of long-term stable development, product homogeneity is serious … … if you do not solve these problems, Security Industry foundation is not strong, always in a state of disorder development, which will be detrimental to the healthy development of the industry.

Mode of operation: a low concentration of lax management
Domestic security industry concentration is low, firm size is generally small, management is more backward. Now increasingly fierce international competition, China's labor force, raw materials and other advantages are gradually disappearing, the domestic security products company Technology Content is low, the lack of independent intellectual property rights, key technology and core parts, components, equipment, rely mainly on foreign imports, dependence on foreign markets is high, poor against risk, as long as the foreign markets, some sign of trouble in the lower reaches of the domestic enterprises will be involved, the over the world Financial Crisis is a typical example. In the capital, the security industry's capital operation mechanism has not yet straightened out, companies want to get loans and venture capital is very difficult. Shortage of funds, security companies in the technology development, channel building process take huge risks. In addition, in the construction process, the client default Contractors , Works the phenomenon of non-payment of producers have occurred, this vicious circle of capital funding chain to run many businesses are sluggish, unable to carry out the work later.

In the case of immature development of the industry, many domestic enterprises also face the challenge of foreign enterprises. Bosch, Honeywell, and many multinational security companies enter the China market, not only bring mature technologies, but also brought advanced security concepts, they are at home, "encroaching" in the main high-end market is absolutely players, the state's key projects in the most well-known brands with foreign products. In contrast, the domestic security companies lack the stability of the product, appears emboldened, and it can look for business opportunities in the second and third tier markets. Market: the lack of standardized cut-throat competition legislation because the lag makes the security market as a whole is still not standardized and has not formed a unified market management system. Market regulation in place, many local governments and the user does not strictly enforce the relevant standards and specifications; enterprises lack the brand awareness, market competition, confusion, "fake and shoddy products, brands and inferior agents, vicious price-cutting" and other still exists.

Security prices all the way down, sales have not increased profits to expand. Security product market competition less early, early market entry was controlled by a potential brand users are mainly government agencies and some large businesses, products, high prices and reaped huge profits. But with the security industry, the rapid development of competition, but did not form orderly market, vicious bring lower prices throughout the industry. As a result, profit margins substantially reduced, although the effectiveness of market development significantly, but did not bring profit growth.

Product homogeneity serious, urgent need to develop new technologies, development of new products.

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