With over 130,000 security professionals expected to visit the show, CPSE attendance is crucial for every Chinese security company
CPSE Shenzhen showcased security products
across 11 halls. The show is arguably the
and most influential in Asia 

China is the largest security market in the world. This makes the annual China Public Security Expo (CPSE) a force to be reckoned with and a place to be seen for every security company. Boasting 11 halls over an area of 110,000 m2 and more than 6,000 booths, CPSE is listed as one of the largest and, certainly, one of the most influential security shows worldwide, with more than 130,000 visitors expected to visit the show.

Touring the show in Shenzhen this year, SourceSecurity.com caught up with local exhibitors among the sea of visitors to find out more about the Chinese security industry first hand.

Beyond OEM: Making the invisible visible

Following the successful footsteps of Hikvision and Dahua, many Chinese companies are focusing on building an international brand, in addition to their established OEM/ODM business. Tiandy is one such company. In recent years, Tiandy has been seen at international tradeshows, such as IFSEC, ISC West and Intersec.

“We officially entered the international stage two years ago,” said Niko XieOverseas Sales Director at Tiandy. “We are a 22-year-old company and one of the few companies that focuses solely on IP products. We manufactured analogue products previously, but in 2012, the decision was made to solely focus on IP products.”

The company may be a new participant on the international stage, but they are well known domestically. Within China, Tiandy products are all distributed under its own brand, even though only 30 percent of the company’s international sales are branded Tiandy. Internationally, Tiandy’s strategy is to partner with a sole distributor in each country, with the exception of the U.S. market, where they hope to find regional partners. Currently, Tiandy has a distributor in Turkey and the Middle East and is in talks with potential partners in other countries.

Although local companies are
keen to expand abroad, none
are ignoring their advantage
of being right within the world's
largest security market - China

Sunell Technology is another Chinese company that is focusing on building an international brand. One of the top five companies in China, it has been in business for 18 years and currently ships to more than 90 countries.

As the company is a major player in the OEM/ODM market with 70 percent of its sales generated from this sector, Sunell Technology only sells products under its own brand in countries where it does not conflict with established partners. One such region is Latin America, which Sunell Technology entered in 2013 with favourable results, seeing fast growth and increasing demand for its products in Mexico and Brazil.

Domestic vs. international: The very large Chinese market

Although local companies are keen to expand abroad, none are ignoring their advantage of being right within the world’s largest security market – China. In fact, there are several Chinese companies that generate more than 90 percent of their sales within the Chinese market alone. Kedacom and TCL, for example, generate approximately 90 percent of their sales in China, while Netposa and Hisilicon generate approximately 80 percent.

Within China, major verticals include the government sector, finance and energy.  The government sector is considered a key vertical for all security companies and a high degree of customisation is required. Netposa, for example, customises their products to police sector requirements in China. Hikvision is also seeing a demand for drone surveillance in Chinese law enforcement.

“We major in law enforcement and the government sector,” said John Xue, Executive Director of Kedacom. “The government sector is the biggest market. Every vendor understands that and tries to get into the market, because this is the market that has the biggest demand for security products, and it is developing fast. Solution-wise, we need to do strong customisation for the clients, so we have a strong R&D team to meet this need. We don’t compete with costs as we need to commit to quality for our customers who are either the government or large corporations who can’t afford mistakes.”

Interestingly, many of the Chinese
companies are mostly offering
small solutions in their overseas
markets, despite having undertaken
large-scale projects domestically

Company roadmap: strategic marketing

Interestingly, many of the Chinese companies are mostly offering small solutions in their overseas markets, despite having undertaken large-scale projects domestically. They say the logic behind this strategy is that most overseas clients are unaware of their brands, so clients may be hesitant to employ their systems in large projects. Chinese companies hope to build up client confidence to deploy larger systems through smaller systems.

To conclude, Chinese companies are skillfully balancing their domestic and international businesses in every respect, from product offerings to technology, key verticals and marketing strategies. The rise of the Chinese security industry is more than low-cost manufacturing. 

Share with LinkedIn Share with Twitter Share with Facebook Share with Facebook
Download PDF version Download PDF version

Author profile

Alyssa Fann APAC Correspondent, SourceSecurity.com

In case you missed it

Wire-free, mobile first and data rich? The future of access control is within almost anyone’s reach
Wire-free, mobile first and data rich? The future of access control is within almost anyone’s reach

The 2020s will be a wireless decade in access control, says Russell Wagstaff from ASSA ABLOY Opening Solutions EMEA. He examines the trends data, and looks beyond mobile keys to brand new security roles for the smartphone. The benefits of wire-free electronic access control are well rehearsed. They are also more relevant than ever. A wireless solution gives facility managers deeper, more flexible control over who should have access, where and when, because installing, operating and integrating them is easier and less expensive than wiring more doors. Battery powered locks Many procurement teams are now aware of these cost advantages, but perhaps not their scale. Research for an ASSA ABLOY Opening Solutions (AAOS) benchmarking exercise found installation stage to be the largest contributor to cost reduction. Comparing a typical installation of battery-powered Aperio locks versus wired locks at the same scale, the research projected an 80% saving in installers’ labour costs for customers who go cable-free. Battery powered locks all consume much less energy than traditional wired locks Operating costs are also lower for wireless: Battery powered locks all consume much less energy than traditional wired locks, which normally work via magnets connected permanently to electricity. Wireless locks only ‘wake up’ when presented with a credential for which they must make an access decision. AAOS estimated a 70% saving in energy use over a comparable lock’s lifetime. Find out more about wireless access control at ASSA ABLOY's upcoming 29th June webinar Deploying wireless locks In short, every time a business chooses a wireless lock rather than a wired door, they benefit from both installation and operating cost savings. A recent report from IFSEC Global, AAOS and Omdia reveals the extent to which the advantages of wireless are cutting through. Responses to a large survey of security professionals — end-users, installers, integrators and consultants serving large corporations and small- to medium-sized organisations in education, healthcare, industrial, commercial, infrastructure, retail, banking and other sectors — suggest almost four locations in ten (38%) have now deployed wireless locks as a part or the whole of their access solution. The corresponding data point from AAOS’s 2014 Report was 23%. Electronic access control Electronic access control is less dependent than ever on cabling Without doubt, electronic access control is less dependent than ever on cabling: Even after a year when many investments have been deferred or curtailed, the data reveals fast-growing adoption of wireless locks, technologies and systems. Is mobile access control — based on digital credentials or ‘virtual keys’ stored on a smartphone — an ideal security technology for this wire-free future? In fact, the same report finds mobile access is growing fast right now. Among those surveyed, 26% of end-users already offer mobile compatibility; 39% plan to roll out mobile access within two years. Before the mid-2020s, around two-thirds of access systems will employ the smartphone in some way. The smartphone is also convenient for gathering system insights Driving rapid adoption What is driving such rapid adoption? The convenience benefits for everyday users are obvious — witness the mobile boom in banking and payments, travel or event ticketing, transport, food delivery and countless more areas of modern life. Access control is a natural fit. If you have your phone, you are already carrying your keys: What could be easier? IBM forecasts that 1.87 billion people globally will be mobile workers by 2022 Less often discussed are the ways mobile management makes life easier for facility and security managers, too. Among those polled for the new Wireless Access Control Report, almost half (47%) agreed that ‘Mobile was more flexible than physical credentials, and 36% believe that mobile credentials make it easier to upgrade employee access rights at any time.’ IBM forecasts that 1.87 billion people globally will be mobile workers by 2022. Workers in every impacted sector require solutions which can get the job done from anywhere: Access management via smartphone offers this. Site management device The smartphone is also convenient for gathering system insights. For example, one new reporting and analytics tool for CLIQ key-based access control systems uses an app to collect, visualise and evaluate access data. Security system data could contribute to business success. The app’s clear, visual layout helps managers to instantly spot relevant trends, anomalies or patterns. It’s simple to export, to share insights across the business. Reinvented for learning — not just as a ‘key’ or site management device — the phone will help businesses make smarter, data-informed decisions. The smartphone will also play a major role in security — and everything else — for an exciting new generation of smart buildings. These buildings will derive their intelligence from interoperability. Over 90% of the report’s survey respondents highlighted the importance of integration across building functions including access control, CCTV, alarm and visitor management systems. Genuinely seamless integration They offer greater peace of mind than proprietary solutions which ‘lock you in’ for the long term Yet in practice, stumbling blocks remain on the road to deeper, genuinely seamless integration. More than a quarter of those polled felt held back by a lack of solutions developed to open standards. ‘Open standards are key for the momentum behind the shift towards system integration,’ notes the Report. As well as being more flexible, open solutions are better futureproofed. Shared standards ensure investments can be made today with confidence that hardware and firmware may be built on seamlessly in the future. They offer greater peace of mind than proprietary solutions which ‘lock you in’ for the long term. Open solutions and mobile management are critical to achieving the goals which end-users in every vertical are chasing: scalability, flexibility, sustainability, cost-efficiency and convenience.

What are the latest trends in perimeter security technology?
What are the latest trends in perimeter security technology?

Perimeter security is the first line of defence against intruders entering a business or premises. Traditionally associated with low-tech options such as fencing, the field of perimeter security has expanded in recent years and now encompasses a range of high-tech options. We asked this week’s Expert Panel Roundtable: What are the latest trends in perimeter security technology?

Secure access control is helping to shape the post-pandemic world
Secure access control is helping to shape the post-pandemic world

With the continued rolling back of COVID restrictions in the UK, there is a palpable sense of relief. A mixture of mass vaccinations, widespread testing, and track and tracing of the infection is helping to enable a healthy bounce back for businesses – with secure access control taking an important role in facilitating this. However, rather than just being a reaction to the wake of the pandemic, there is every sign that the economy, and consequently the security sector as well, are both rebuilding and reshaping for the long-term new normal. Prioritising Safety Already deemed an essential service even during the first wave of the pandemic, the security industry has of course taken a vital role in protecting people and property throughout the crisis. Now that venues in the UK are starting to reopen again, our services are key to occupancy management and ensuring that disease transmission is limited as far as possible. Access control is also key in reassuring people that their safety is a priority. Making the upgrade It’s all been about choosing the most suitable components and technology that already existed with a few “tweaks”  Businesses and organisations have a duty of care to their employees and the safety of visitors – so controlling access, employing lateral flow testing, and deploying suitable Track & Trace mechanisms are all key components. I think those outside our industry are surprised to learn that most of the technology being deployed and used hasn’t just magically developed since COVID appeared – it’s all been about choosing the most suitable components and technology that already existed albeit with a few development “tweaks” or adjustments for the situation at hand. This includes using or installing facial recognition readers rather than using fingerprint or contact tokens, it is swapping to automatic request to exit sensors instead of buttons; it is using powered secure doors rather than having people all grab the same handle. Using mobile credentials is also a key technology choice – why not use the highly secure, easy to manage, cost-effective, and of course contact-free benefits of this approach? Touchless solutions We have seen a clear shift in organisations looking to protect their staff and visitors. For instance, we have a big utility customer in Southeast Asia that has just replaced close to 200 sites using fingerprint readers with an additional facial recognition capability. We have also seen a big rise in demand for touchless request to exit sensors and Bluetooth Low Energy Readers for use with smartphone authentication. Working together Integration of security systems is of course nothing new, but in the post-pandemic or endemic age, it has perhaps never been more important. Installations need to be simple, straightforward, and rapid to help maintain safe distancing but also to ensure systems can be deployed as soon as they are needed. The world is changing and developing rapidly and there is simply no place for systems that don’t work with others or cause the end-user considerable cost and inconvenience to upgrade. This flexible delivery of security solutions perfectly matches the evolving and increasing demands of the market. It’s clear that end-users want systems that work well and can easily integrate with their existing systems – not only security but all the other business components which work in unison with each other over a shared network. Great opportunities ahead The recent work-from-home trend is also clearly changing the way organisations and businesses interact with the built environment. Lots of companies are downsizing, offices are being split up, there is lots of revitalisation and reuse of existing office space – all of which creates considerable opportunities for security providers. UK inflation more than doubled in April 2021 with unemployment figures dropping and the Pound rising in value There are also, in the UK at least, clear signs that the construction industry is rapidly growing again -with a forecast of 8% rebound and growth this year. UK inflation more than doubled in April 2021 with unemployment figures dropping and the Pound rising in value – all positive signs for UK-based security providers. Undoubtedly the highly successful UK vaccination rollout has helped considerably, but there are signs that the Eurozone looks set to improve considerably over the next few months as well. Using integrated access control Undoubtedly the pandemic has made security markets around the world more aware of the benefits of integrated access control in managing the needs of the new normal COVID endemic environment. For example, as a business, we have always had keen interest from the UK healthcare sector, but over the last 12 months, we have seen a big growth in previously modest international markets including Morocco, Kuwait, Bahrain, Thailand, Singapore, Hong Kong, and Thailand – all of which are very keen to adopt improved access control solutions. Learning the lessons Nobody would deny the last year or so has been unprecedentedly tough on everyone, as a society we have had to make huge changes and sacrifices. Governments, organisations, and businesses all need to be better prepared in the future, to understand the things that went wrong and those that were successful. However, there is a world beyond the immediate pandemic and its effects. Flexible working practices and the changes these will have to the way we live and work will undoubtedly present great opportunities for the security sector in helping the world evolve. The pandemic has been a wake-up call for many organisations with regards to their duty of care to employees – particularly when it comes to mental health and providing a sensible work/life balance. Where we work and the safety of these facilities has received far more scrutiny than before. Flexible security systems Integrated security solutions have a vital role to play in not only protecting the safety of people during the post-lockdown return to work but also in the evolution of the built environment and move towards smart cities - which inevitably will now need to consider greater flexibility in securing home working spaces rather than just traditional places of work. Importantly, powerful access control and integrated security systems need to be flexible to the uncertainties ahead. The COVID pandemic has shown that nothing can be considered certain, except the need for greater flexibility and resilience in the way we operate our professional and personal interactions.