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You either can grow, but you have to sacrifice your margin because you need to fight with prices, or you will keep your margin, and you will have a lower growth rate. Very few companies will have both.
sales channels still try very hard to keep a good balance between growth and profit margin, which is the key issue that the security industry is currently facing. The industry expert continued and said, â€œEven though some market researcher said the market will grow by 20 or 22 percent (in the IP video surveillance) now and in the future, in reality itâ€™s very difficult for some companies to grow by 20 to 22 percent with their desired margins. You either can grow, but you have to sacrifice your margin because you need to fight with the prices, or you will keep your margin, and you will have a lower growth rate. Very few companies will have both.â€? According to the recent and also past reports of a&s Security 50, some leading suppliers have migrated from offering devices only into providing systems as solutions for different types of projects, in order to stay profitable and competitive in the market. Some regions like Eastern Europe, Latin America, and Southeast Asia really feel more pressure due to Chinese products, since they are mostly box moving markets. To keep away from the price competition, developing systems/solutions has become a major movement for most channels since IP technologies were introduced to the security industry around early 2000.
SYSTEMS INTEGRATORS ARE SUFFERING FROM INTEGRATION Suppliers including distributors, resellers, and wholesalers evolve toward solutions not only for survival but also for offering best-of-breed