Hikvision is the top rated manufacturer of security cameras in the world. Yet, its the most hated.
Hikvision three to five years ago did not exist on the map of security. Hikvision received tons of funds from the Chinese government. Manufactured descent quality ip security camera and network video recorders, easy to use, easy to install, easy to configure. Hikvision launched a standalone POE Network video recorder. That POE NVR became a popular commodity for security installers/integrators, since it was a plug and play and good quality.
First Hikvision opened an office in California to support and service a few distributors. Hikvision setup an agreement with 2mcctv.com, ADI and Tri-ed to stock them with no bill upfront, on sale terms. Being backed up by a Chinese government that was easy for Hikvision to do. There was not even a yearly goal commitment required from those distributors.Dealers/Integrators who already have terms with those distributors, started buying Hikvision products with extended terms.
In the mean time Hikvision was partnering with other distributors around the globe, with specific commitments. Hikvision distributors in China are much bigger than the distributors in the U.S. The Chinese security camera suppliers had to move tons of hikvision ip cameras with no restrictions on how or where to sell them. Of-course those suppliers have millions of local dealers who have access to internet and online business. For the Chinese suppliers to move millions of cameras on monthly basis, they had to minimize profit, maximize volume. They relied on their local dealers/agents or trading companies to move this massive volume of hikvision security cameras.
Local Agent/Dealers/trading companies in china had also to move as much products as possible to keep their volume moving. Chinese trading companies would start marketing Hikvision products to online marketplaces, such as Amazon, Ebay, Sears, Walmart, DHgate, Aliexpress and so on. with a $1 profit margin, initially. With their main goal being to sell as many as possible.
With time, more and more trading companies got connected with Chinese suppliers. Thousands of new marketplace seller accounts started popping everywhere. On every marketplace you can imaging in the world. Posting Hikvision security cameras on amazon us, amazon Brazil, amazon so and so. While initially their profit margin was set to $1, now it went down to 50 Cents.
The dealers/integrators in U.S. quoting all their customers Hikvision, started getting feedback from their customers that the quote they received was too high. Customers were googling the model numbers to find them cheaper at amazon or on google shopping. The Hikvision products being shipped directly from China to U.S. through marketplace channels, FREE SHIPPING!
Manufacturers in China of other security cameras start loosing lots of business to HIkvision. So Chinese manufacturers switch to survival mode and start manufacturing Hikvision replicas. Exact same hardward and software of Hikvision ip cameras. Using a cracked older version of Hikvision IP camera firmware. Chinese were able to replicate rolex watches, so it wasn’t that difficult to replicated Hikvision cameras.
The trading companies in China realize the prices they are offering now on marketplaces are not that great even with a 50 cents profit, due to the presence of Hikvision replicas. Majority of end users cannot see the difference when they buy. Majority of end users look at the sellers reviews not product reviews.
Hikvision did an amazing Job marketing their products worldwide. The name brand of Hikvision is worth Billions of dollars now. However, they were not able to protect the interested of their root customers, which are the security dealers/integrator. This will impact Hikvision negatively soon. We have already seen rejection from many dealers who have no interest in their brand or product no more. Those dealers/integrators have lost considerable amount of projects because of the hikvision price exposure in the market.
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