The security industry like CCTV and DVR is severely challenged by China and Taiwan.
Global competition of our companies such as IDIS, CNB Technology, KODICOM, and Win4net has been recognized after they made success in the digital security equipment market a few years ago. But, it is criticized that they are handing over their positions to China and Taiwan by deep-seated problems of domestic small and medium businesses in cooperation and price competitiveness.
International security equipment exhibitions like ISC(US), IFSEC(England), Security Essen(Germany) are the anemoscope of the security industry. Companies that participated in Security Essen, the largest security exhibition in Europe held in the middle of October, had counted China and Taiwan as a key word. In IFSEC held in May, in England, 53 Taiwan companies participated and 28 Chinese companies participated and in Security Essen, 81 Taiwan companies and 42 Chinese companies participated, however, our companies were only 24 in IFSEC and 26 in Essen.
Domestic makers of security equipments have failed to achieve 50 billion won sale except IDIS for several years, but Everfocus, AV Tech, and Yoko of Taiwan are chasing IDIS, making constant growth to 60 billion won sale. HIK of China is also gaining attentions.
Kwon, Oh-eun CEO of Win4net said "The number of companies has been reversed in a few years and the leadership of product trend is slowly moving to them." Sul, Chang-hoon CEO of Comart System said “they are following in our growth models that not only secures the price competitiveness in the low-priced market but continuously expands OEM and ODM of global enterprises like GE and Pelco." "They give effects to our new companies or the middle standing companies."
Taiwan companies are outstanding in cooperation of companies. They are well virtualized in manufacturing and have a good cooperative system that orders chip solution or board to Korea and simple assembly to China. Especially cooperation with China makes a gap of competitiveness. They are advancing us in some new trends like H.264 through re-investment in R&D.
Domestic companies are too small to invest in China. Choi, Byung-bong CEO of Pinetron said "They maximize the competitiveness of cooperative system that secures components by ordering large-volume components at a low price and assembles components in China." "They advance in the strategy of creating market using capital and business lines of Taiwan and China."
Kim, Young-dal CEO of IDIS said "Global security companies put products from Taiwan and China on the low-priced model lines, but the effects to the main market is not so big, yet." "We are paying attention to the movement of Taiwan and Chinese companies to the global market."
The solution for the challenge suggests that we need a differentiated strategy that stresses advanced function and high stability like a camera with HD screen and internet protocol. Now, the largest issue of our companies is a new concept to be shown next year and some companies complain that the government hardly supports high technologies like networking, IP solution, and intelligent solution despite the security equipment industry is a major business of small and medium businesses.
A CEO of a small and medium business pointed "Disconnection of information and cooperation among domestic companies causes to get behind them in competitiveness." "The government policy seems to lead companies to the area without immediate profit instead of securing competitiveness in the area with profit."