Hikvision Americas president: We will enter market in a 'meaningful way'
HANGZHOU, China—Hikvision Digital Technology, ranked by IMS Research as the largest worldwide manufacturer of DVR products, and a maker of other video surveillance products, will use its recently announced IPO to fuel a bigger move into the North American market, company officials say.
“Hikvision’s IPO in China raised the necessary funding for Hikvision’s entry to [North America] in a meaningful way,” said Jeffrey He, president of Hikvision’s U.S. office, in an email interview. The company has a number of initiatives underway, he said, that should substantially increase the company’s market share here.
The company’s new management team here is headed by He, and now includes Larry Tracy as executive advisor and Frank Ryan as senior sales leader, two executives with a combined 70 years in the security industry. The intent is to house this new team in a “large logistics center” on the West Coast, at a location to be determined.
“Hikvision’s IPO will allow us to fund a true American operation and to establish strategies ‘In America, for America,’” He wrote. “We will be a mainstream industry partner and market player vs. an offshore office and provider.”
Many current integrators and installers may already be using Hikvision products without knowing it. The company is an OEM manufacturer for a number of brands and currently has a market value of as much as $6 billion, with 500 million shares in total valued at roughly $12 each. The company has more than 700 development engineers, He said, and he argued that Hikvision “provides a solid commitment to our partners and clients in the North American market. We are a financially healthy, and technology-oriented company, and we look for long-term growth in America with our partners. We believe that our partners look at Hikvision as a true strategic partner beyond a simple trading relationship.”
The company is a member of both ONVIF and PSIA, and “it is our plan to establish a market leadership position with a full line of video technology products and solutions,” He said. “As one of the world’s largest security equipment manufacturers, we have the capability and capacity to ensure our partners a significantly improved margin.”
In 2009, the company’s operating income was roughly $300 million, with an operating profit of roughly $100 million. The company has more than 2,700 employees.
"Hikvision is well known in China for its capability to work closely with integrators, installers and end users," He said in his email. "Our design engineers and application engineers often spend enormous amounts of time on-site with our clients. It is our tradition to deliver the product and technology solutions for the customer’s needs. We are in the process of bringing this tradition to North America. As a matter of fact, we have brought design engineers to meet our North America clients, to participate in regular conference calls, and we have sales engineers visiting clients frequently."
He said Hikvision is in the process of building a "first-class service organization for the benefit for all of our North American clients," and that the company is committed to fully invest in American operations.
"Hikvision’s growth strategy is In America, for America," He said. "We will have dedicated engineering resources for this market, and we will establish a manufacturing facility here in the United States."