Second and third line security market is blue ocean

The second and third tier cities will be built in accordance with the "12th Five-Year Plan" for security and construction. During the 12th Five-Year Plan period, major public works projects such as "Safe City", "Science and Technology Strengthened Police Construction Project" and "3111 Project" will continue to be added. With great efforts, the construction of Safe City has gradually shifted from the developed cities in the east to the central and western regions and the second and third tier cities and counties. Coupled with the gradual improvement of people’s security awareness, the security needs of the second and third-tier areas have risen rapidly and have become a new blue ocean for China’s security market growth and expansion.

Statistics show that: Pingan City's demand for various types of security products is 28% for surveillance systems, 13% for GPS and intelligent transportation-related products, 9% for anti-theft alarms, 19% for police equipment, 15% for criminal investigation equipment, and biometrics and smart cards. 5 %, other 11%. In 2011 alone, as the “3111” pilot project entered the overall promotion stage, direct investment was close to 100 billion yuan.

During the “Twelfth Five-Year Plan” period, numerous safety construction projects will be launched in the central and western regions in an all-round way, which will bring enormous business opportunities to the security markets in the second and third-tier regions. As the first year of the “Twelfth Five-Year Plan”, three provincial security associations, Gansu Province Security Technology Prevention Association, Shandong Public Security Technology Prevention Association, and Xinjiang Uyghur Autonomous Region Security Technology Prevention Industry Association, were established, reflecting the Midwest region. The security industry is thriving.

In the economically developed eastern coastal areas, there are many small and medium-sized cities. In recent years, economic growth and the growth of disposable income of residents have been very rapid. At the same time, the need for security has also increased. The construction of “Peace City” and “harmonious society” also began to spread out from provincial cities in the region to small and medium-sized cities, counties and cities, and even towns and towns, thus stimulating the growth of the public security market and civil security market. Taking security monitoring as an example, Guangdong Province plans to strengthen security construction throughout the province during the “Twelfth Five-Year Plan” period. It will build 960,000 video surveillance sites throughout the province, which will bring a huge market of no less than RMB 20 billion to the security industry. If coupled with the upgrade cost of 10 billion yuan, Guangdong's security market will receive a huge market of 30 billion yuan from the field of video surveillance.

According to the requirements of the plan, by the end of 2014, the end of the “Twelfth Five-Year Plan”, Guangdong Province will add 1 million surveillance image collection points. In addition to Guangzhou and Shenzhen, another half of the video surveillance points will be distributed in Zhongshan and Foshan. , Dongguan, Huizhou, Zhanjiang, Shantou, Maoming, Shaoguan, Heyuan, Yunfu, Qingyuan, Meizhou, Zhaoqing and other 19 cities.

In addition, during the “Twelfth Five-Year Plan” period, the security construction in our rural areas will be further strengthened. In 2011, the Ministry of Public Security issued the Opinions on the Implementation of Security Technology Precaution Work in Rural Areas, and proposed that by 2015, more than 80% of the eastern regions, more than 70% of the central regions, and more than 60% of the western regions’ townships and townships In areas where the government is located and where urbanization and industrialization are relatively high, technical prevention systems based on video surveillance and networked alarm systems are established. This will greatly promote the development of the rural security market.

Taking the central province of Henan as an example, as of the end of 2010, a total of 8.64 million sets of technical and preventive facilities were installed in rural areas of Henan Province. The coverage of administrative villages reached 97.8%, and the coverage of natural villages reached 91%. Among them, 10,386 monitoring systems were built, 727 of which were built. The rural police station has built a three-level monitoring platform.

In the eastern part of Anhui Province, it will promote technology to prevent village-level coverage in the construction of rural technical defenses, install emergency buttons and “ten households (or more) joint defenses” and other technical protection facilities in rural households to achieve small-scale networking or on-site alarms. . In addition, more than 90% of infrastructure in rural areas, such as electricity, water conservancy, communications, oil and gas pipelines, and important material storage facilities, is equipped with anti-theft alarms and video surveillance as the auxiliary technical protection system. In addition, technical anti-alarm networks and video surveillance systems are also built in the suburban suburban areas, township commercial districts, high incidence areas, and important traffic intersections.

Chengdu, Sichuan Province in the western region, will invest more than 70 million yuan in 2012, for an additional 600 sets of electronic eye monitoring, mainly on the red light, speeding, violation of the prohibition of marking, violation of the prohibition mark, parking in the prohibited zone and other traffic violations Behave 24 hours a day to monitor and capture, as well as the corresponding background processing system, storage expansion, software and hardware upgrades of Internet sites, application software management platform upgrades, and communication system construction.

Shaanxi Province proposed to implement the security effect of the three levels of interconnection, intercommunication, and mutual control of the province's cities, counties, and villages by 2012. By 2011, more than 100 administrative villages had installed monitoring probes.

China's rural population accounts for 51% of the total population, and rural areas are vast and villages are irregularly distributed. With the accelerating pace of urbanization in various parts of the country, a large number of young and middle-aged rural residents have flooded into the cities, and rural areas with old and weak women and children as the main body have become weak areas for security protection. As an important part of public safety construction in the “Twelfth Five-Year Plan”, rural security construction will be given more and more attention in the future, and the hidden security needs of 100 billion will also become a new growth point in the security market.

Security companies how to open up vast markets At present, there are a large number of security companies at home and abroad, and the good and the bad are uneven. With the intensification of market competition, foreign well-known enterprises occupying the traditional high-end market have begun to attack the mid-range market, in the low-end market, such as the second and third tier cities. The threshold for entry is low, and a large number of local security companies have been piled up, and price wars are breaking out frequently. However, as the market continues to regulate, in addition to traditional competitive factors such as functionality, quality, and price, services have become powerful as an effective means of competition.

◇ Promoting differentiated marketing strategies What are the differences between customers in Tier 2 and Tier 3 cities and Tier 1 cities? What strategies should be adopted for these differences? Compared with the markets of first-tier cities, the brand perceptions of target customers in second- and third-tier cities are relatively weak. Enterprises should conduct marketing work for target customers and Party A’s buying habits and purchasing power, and strive to achieve targeted results.

First, through the analysis of the purchasing habits and purchasing power of the target customers of security products, we learned that as the second- and third-tier cities, marketing awareness in the future will inevitably strengthen brand awareness. Second, at present, most of the first-line markets that focus on brands and quality tend to be saturated, but remote second- and third-tier cities are in full swing in the construction of safe cities.

â—‡ Avoid the quagmire of a price war. The primary market once fell into the battle for security product price warfare. In the second and third tier cities where prices are more important, how can we avoid falling into the quagmire of price war? This possibility exists, but the price is not a decisive factor because there is experience in first-tier cities. This kind of blindness in the price war will be relatively reduced, and quality and service will remain the core elements of competition. Due to the lack of a unified management system for the management of the domestic security market, there is no scientific standard system for the operating companies in the security industry, resulting in a disorderly and disorderly security market. The price war has seriously affected the quality of the products and led to low-cost materials selection. High-cost marketing. Security companies involved in the second- and third-tier market competition will face enormous challenges. The construction of market channels, the promotion of marketing, and the establishment of service systems will all result in huge investments. At the same time, internal management will also face enormous challenges. The increase in rigid equipment for business operations, and the strengthening of soft conditions such as employee training and cultural construction will increase the company's operating costs. In addition, soft hardware enhancement companies can control costs from three aspects: marketing, technology innovation, and service innovation.

At the same time, the price war cannot subvert the security industry, nor will it affect the marketing of second- and third-tier cities. Security products have strong stability and easy operation, and can be reflected in the first use or operation.

Enterprises participating in the second- and third-level market competitions need to promote products that are simple to operate and affordable, and at the same time they should strive to increase the value of their products, and should not be overly generous advertising.

â—‡ Universally applicable marketing model At present, security companies generally adopt the following types of marketing models in the second and third-tier markets. In response to this market characteristic, various manufacturers and upstream agents are actively looking for more suitable marketing tools.

One is the traditional sales situation and the self-built channels of security manufacturers. Security companies usually adopt direct marketing in the secondary and tertiary markets. The brand elements can be added on the basis of direct sales and localization services so that customers in the secondary and tertiary markets can recognize the importance of brand strategy. The other is a cooperative distribution form established by security manufacturers. Some manufacturers directly seek out partners for hierarchical tiered sales based on profit sharing. At the same time, they use their own brand advantages to find regional market agents to complete product distribution through cooperation.

â—‡Complete after-sales service highlights brand strength is just an old saying: When the benevolent sees the wise and sees the wisdom, the security company should choose the more appropriate marketing based on the development and changes of the second- and third-tier cities' channel construction and the changes in the target customer's market, combined with their own conditions. means. At the same time, due to the large number of second and third-tier markets, when security companies consider the distribution of channels, it is unavoidable to consider how to provide perfect after-sales services to Party A and contractors after product sales.

Security products must first be sold after service, first establish service outlets and then sell products. Big brands must have more comprehensive services. Brand enterprises must first establish a national or even global service network and service management platform. They must not only have advanced service concepts, but also have exact operating systems, architecture, and sufficient professionalism. Talent to guarantee. There are a large number of second and third-tier markets, and the layout of service channels is indeed a big test. In order to have a foothold in the competition in the secondary and tertiary markets, the key question is whether localization services can be well served. The localization service mentioned here refers to two aspects. On the one hand, it establishes branches or offices locally on the basis of the company's development pattern, and effectively implements the service localization. The manufacturer's instructions need to be easy to understand, and they should be combined with the graphic and text. The way to guide the explanation; at the same time, the office as the center for the surrounding customers to service, shorten the distance between manufacturers and customers. On the other hand, we are looking for strategic partners in the region to provide services and technical support to our secondary and tertiary market customers.

Concluding remarks The second and third tier markets are rapidly heating up. A new round of competition in the security market has already begun. Whether it is product fight, fight technology, fight brand, fight relationship, or fight price, I believe there will be wonderful interpretations, security elites in a new round of competition How to surprise in winning? We look and act!