CCTV from the Celestial Empire.
What is a myth?
An unreliable story, a fabrication.
Reality is also seemingly clear — this is what really exists.
So let's discuss what is a myth and what is reality in the Russian TSB market.
We will debunk the myths of unscrupulous advertisers and emphasize the real advantages of the equipment presented in the industry.
We will do this with the help of the experts on duty in the new TZ section.
First, a brief retrospective.
This is absolutely necessary for a full and objective understanding of the current situation.
Indeed, Chinese CCTV equipment did not fill a vacuum. By the time it appeared on a large scale, the Russian CCTV market had already existed for a long time, had been developing, and was becoming more and more interesting for leading foreign manufacturers every year.
Its history can, of course, be divided into the following stages.
The birth of the market. The beginning of the 90s. Crazy years, crazy business. Individuals and small companies sell cameras, intercoms and video recorders. The prices are crazy, the profit is too.
Small companies sell all of the above, but the range is expanding, the companies are also gradually growing, buying things from each other.
The beginning of the 2000s: digital video surveillance systems (video capture cards and video recorders) appear on the market.
2005–2008 – active growth of the market, companies, product range, sales volumes, emergence of small companies, start of the IP era.
Crisis. The client is picky and stingy.
Present day. Companies are careful in choosing partners, not everyone has enough money for the promotion they want, the client is still picky and demanding.
At the first stage, the Chinese were not even heard of. There were very reputable Japanese companies, as well as Koreans, who were trying very, very hard to catch up with the Japanese and, due to cheap labor and, as a result, lower prices, take away their market share.
KT&C cameras and Commax and Kocom intercoms were certainly the leaders and favorites of the market.
The most significant event of the second stage was the formation of dealer networks of the most popular and well-known brands.
Well-known Japanese and European brands are positioned as very expensive and prestigious. Their equipment is bought and installed at very serious facilities.
Korean devices became more and more accessible to all other customers, although more and more good equipment appeared in the lines of Korean companies — literally before our eyes, the formation and development of new brands of the TSB market, which are on everyone's lips today, took place.
I would date the appearance of the first Chinese devices to the first years of this century. At first, timid rumors began to spread: someone had seen it, someone was already certifying it and preparing to export it…
The rumors were mostly not confirmed – the Chinese devices were so poor both in appearance and in technical characteristics that it was impossible to look at them. Specialists did not take this equipment seriously.
But nevertheless, the Chinese have already declared themselves as a country with cheap labor, ready to become a world assembly plant for everything that needs to be assembled. In the powerful and full-flowing stream of foreign investment pouring into the country, there was, of course, a very noticeable stream of money directed to the security equipment industry.
Then, probably, the myth was born that Chinese manufacturers mainly copy equipment from famous brands.
This is still more a myth than reality.
I will explain why I think so.
Firstly, copying, i.e. literal and exact duplication of devices from other manufacturers, is a fairly common phenomenon in the CCTV market.
And it is certainly not the Chinese who are its founders.
Secondly, there is no practical or economic sense in literally copying products, in general.
China entered the CCTV market when leading manufacturers had already firmly occupied their niches, and the range of offers was very wide, as they say, for every taste and budget. Agree, if a client wants to build his system based on cameras of a particular brand, what is the point of offering him in return exactly the same, but from another company?
If a potential buyer is guided by some functional capabilities of the camera, its reliability, it is even more unlikely that his attention will be attracted by copies of famous brands.
Thirdly, let's make a distinction: counterfeiting is one thing, but making a product that looks like a well-known brand (which many Chinese manufacturers do) is quite another.
In addition, I can't help but recall the old truth that all ideas in the world are sure to be repeated.
It is well known that for many years now China has been a very advantageous place to locate production facilities, especially so-called screwdriver factories.
Probably no other country in the world produces as many different products today as are manufactured in China. The main reason for such a boom is well known — the availability of very cheap labor.
Leading global brands have moved their production to China.
This statement can hardly be classified as a myth either.
Because many CCTV manufacturers have indeed invested in the creation of assembly plants in China.
Korean companies were among the first to place production in China.
Moreover, some of them moved their production here almost entirely.
Later, the Japanese and Europeans followed their example. According to experts, about 50% of all CCTV equipment is now produced in China.
At the same time, the world market does not see anything bad in this; unlike the Russian market, it does not suffer from such prejudices.
In fact, you can be sure that manufacturers of leading global brands always and everywhere build their production facilities according to uniform standards, which include a multi-stage and very strict quality control system for products.
At the same time, the level of training of personnel at Chinese factories fully corresponds to the tasks assigned to these personnel. Again, anyone who believes that future Nobel laureates stamp boards at factories in Great Britain or Germany is, to put it mildly, mistaken.
So equipment manufactured in China often cannot be considered purely Chinese.
Chinese CCTV equipment is cheap and of poor quality.
But this is more of a myth. I would even risk calling this widely held opinion in Russia an atavistic myth.
Of course, one cannot but agree that the current face of Chinese products still has some features of their predecessors, but the development vector chosen by manufacturers from the Celestial Empire is the only correct one.
Today, China very actively and competently uses all the opportunities provided for the establishment and development of its own production. The number of Chinese brands in the CCTV market is constantly increasing.
The Chinese, as a rule, do not try to organize full-cycle production at one enterprise. Some factories cast cases, others stamp printed circuit boards, and others assemble finished products and make packaging.
The quality of assembly can vary greatly. At one of the factories, I happened to see how assemblers were having lunch without leaving their workplaces, but simply moving the cameras to the side.
I want to say right away that I have seen even worse assembly options: private individuals literally assemble cameras on their knees, very similar to Korean ones. But you must agree that it would be wrong to call this a purely Chinese invention.
I think that the production base of some Russian companies can make no less of an impression.
I would also like to note that «cheap» and «poor quality» are synonymous words. At least, this is the case in our high-tech market. But nothing can be done, such is the reality: if someone produces something bad and cheap, then someone needs it. It is clear that as soon as customers stop buying such devices, they will immediately stop producing them.
Now we can say with confidence that full-fledged brands have appeared in China, which are taking an increasingly worthy place in the security systems market.
Manufacturers often specialize in one product (for example, video cameras or video recorders), and in order to maintain and develop their customer base, they replenish their range with partner equipment, but at the same time sell it under their own brand. It is for this reason that you can now find many similar products from different manufacturers.
Low price is the only competitive advantage of Chinese devices.
And again a myth, if, of course, we mean normal manufacturers. Low price compared to competitors is the hobbyhorse on which the Chinese entered the CCTV market. They still have this advantage, and our neighbors are very actively using it.
By the way, for this reason the Chinese are practically not engaged in new developments. Not because they do not know how, but because innovations require significant investments, which will certainly be reflected in the price of the product.
But today, leading Chinese manufacturers compete with colleagues from other countries at all possible levels. And quite successfully.
First of all, I would like to note the level of service in some Chinese companies. How is this expressed:
- practically round-the-clock technical support;
- tracking orders down to the smallest detail (everything is agreed with the client, right down to the packaging);
- the ability to make the necessary changes to the product;
- maximum prompt processing and preparation of orders;
- replacement of equipment and provision of repair kits without long and tedious explanations;
- availability of managers who can speak and write Russian.
I am sure that any of my colleagues who has ever dealt with export equipment will agree that these are precisely the competitive advantages that can be decisive when making a decision.
Moreover, I will not be afraid to repeat myself, China has a fairly well-developed manufacturing industry and, with proper control, high quality products are a very real thing.
Prospects for Chinese expansion
There is nothing to argue about here: Chinese expansion is an obvious global reality. Strong competition leads to the fact that only the really strong survive, those who produce high-quality devices.
The Chinese understand this very well.
The Chinese CCTV market is largely export-oriented, so the widespread implementation of European and American standards is an inevitable path.
The obvious advantages of Chinese CCTV equipment:
- a large selection of manufacturers;
- a wide range of products;
- high rates of development.
Of course, there are also disadvantages, which we have already discussed.
From my personal observations, I will share the following: the Chinese are very hardworking, but their products sometimes lack the completeness (both design and technical), which is distinguished by the world's leading brands.
Chinese manufacturers still have many unresolved problems in organizing production processes.
But those that have already been built according to the best Western samples, they function almost without interruption.
I think that China is the future.