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Home Security Sourcing Report
Essential sourcing intelligence for buyers Includes mainland China • Hong Kong • Taiwan • South Korea Beijing Tianjin
South Korea
Shanghai Zhejiang Fujian Taiwan Guangdong Hong Kong
Home security supply centers
June 2005
Manufacturer profiles Detailed profiles of 48 suppliers, including findings from in-person tours of 29 factories
Product & pricing forecasts Prices and specifications for 141 top-selling export products
Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D
US$645
www.globalsources.com
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Sourcing Report
HOME SECURITY MANUFACTURING IN MAINLAND CHINA, HONG KONG, TAIWAN AND SOUTH KOREA A ground-level view of supplier capabilities and product trends in the home security industries in mainland China, Hong Kong, Taiwan and South Korea EXECUTIVE SUMMARY In 2004, respondents from mainland China and Hong Kong exported $42.9 million home security products. Respondents from Taiwan and South Korea exported $19.5 million and $15.2 million, respectively. Exports contributed between 40 percent and 80 percent of mainland China and Hong Kong makers’ revenue; and more than 80 percent of South Korea and Taiwan makers’ revenue. Orders for home security products—consisting of intruder or burglar alarms; video doorphones; and fire, smoke and gas detectors— usually come in small volumes. As such, performance-to-price ratio remains the major consideration. Two unique characteristics of the product line serve as non-tariff barriers to the entry of new makers in the industry: The need to meet product safety standards and secure safety certifications in various markets, and the need for turnkey system solutions consisting of control panels and detectors. A total of 48 companies were interviewed for this report. Statements made in this report regarding the home security industry are derived from data contributed by the 48 respondents. Among the findings are: Production centers • Guangdong province is the manufacturing hub of home security products in mainland China. Zhejiang province follows. • Chung Ho city is the key manufacturing center in Taiwan, Taipei is second. • Daejeon is the production center in South Korea. Manufacturing capability • The industry produces an average of 1.1 million units every month, of which 414,700 units are wired and wireless intruder alarms, 272,450
units are video doorphones, 295,400 units are fire/smoke detectors, and the rest comprise other home security products. • Most makers outsource a significant portion of their production processes, with some handling only the R&D, QC and final assembly of the products in-house. • There is a very high level of quality awareness. Each of the companies featured have acquired at least one
Monthly product mix of makers included in this report as of June 2005. In thousand units
300
250
250
246
Video doorphones Fire/smoke detector Intruder alarms
200
150.6 150
100
99.3
89.7 75 45.5
50 23 3.45 0 Mainland China & Hong Kong
Taiwan
South Korea
Source: Global Sources
management quality system, with ISO 9001 being the most common. Component sourcing • Components for both wired and wireless alarms such as detectors, sensor modules, LCDs, ICs, circuit systems, and RF modules are usually sourced from the mainland, Japan, Taiwan or the United States. • For video doorphones, components such as CMOS and CCD sensor modules, LCDs, CRTs, and ICs are sourced from Japan, Taiwan, South Korea or the United States. • More than half of the makers foresee prices of intruder alarm components to increase between 5 percent and 15
percent. Video doorphone components, on the other hand, are forecast to remain stable. Exports • Own-brand sales account for 58 percent, 66 percent and 78 percent of exports from mainland China and Hong Kong, Taiwan and South Korea, respectively. The balance goes to OEM/ODM. • A big chunk of shipments go to Western Europe and North America, 33.2 percent and 29.5 percent, respectively. Other destinations are the Middle East, Eastern Europe and Southeast Asia. Product and price trends • Many of the intruder alarms are integrated with fire/smoke and gas leak detectors, motion detectors and door and window contacts. • Modular concepts make the addition or removal of modules such as camera modules, voice mailbox modules, easier. • Most wireless detectors work over 315MHz or 433MHz. • The common display sizes of video doorphones are between 4 inches and 5.6 inches. Buyers may expect larger display sizes ranging from 10.4 inches to 15 inches before the year ends. • A wide price differential exists because of varied solutions, designs and functions. In H2 2005, prices are expected to be stable. IN THIS REPORT 29 In-depth Supplier Profiles 19 Profile Tables Product Galleries for 61 Intruder/burglar alarms 40 Video doorphones 17 Fire/smoke/gas alarms 23 other home security products Supplier Index
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Sourcing Report
CONTENTS INDUSTRY OVERVIEW INTRODUCTION ....................................................................................................................................................... 6 Supplier demographics ................................................................................................................................................................ 7 Trade show presence ................................................................................................................................................................... 9
MANUFACTURING CAPABILITY ............................................................................................................................. 10 Manufacturing experience ......................................................................................................................................................... 11 In-house vs. outsourced processes ........................................................................................................................................... 12 Factory sizes .............................................................................................................................................................................. 14 Production lines ......................................................................................................................................................................... 15 Production workforce ................................................................................................................................................................ 16 QA/QC workforce ....................................................................................................................................................................... 17 Investment in equipment ........................................................................................................................................................... 18 Production mix .......................................................................................................................................................................... 19 Components sources and cost forecast ..................................................................................................................................... 20 Capacity utilization .................................................................................................................................................................... 21 Management quality certification .............................................................................................................................................. 22
EXPORT CAPABILITY ............................................................................................................................................. 23 Export destinations ................................................................................................................................................................... 23 Export orientation ...................................................................................................................................................................... 25 Types of buyers served .............................................................................................................................................................. 26
PRODUCT & PRICE TRENDS .................................................................................................................................. 28 Technology partners .................................................................................................................................................................. 28 R&D investments ....................................................................................................................................................................... 29 R&D focus .................................................................................................................................................................................. 30 Price differential table ............................................................................................................................................................... 34 R&D workforce .......................................................................................................................................................................... 32 Product quality approvals .......................................................................................................................................................... 33
OUTLOOK .............................................................................................................................................................. 35 Price forecast ............................................................................................................................................................................. 35 Capital outlay ............................................................................................................................................................................ 37 Production forecast ................................................................................................................................................................... 39 Export forecast .......................................................................................................................................................................... 41 On the move .............................................................................................................................................................................. 43
SUPPLIERS AT A GLANCE ...................................................................................................................................... 44 SUPPLIER PROFILES ............................................................................................................................................. 50 SUPPLIER TABLES ............................................................................................................................................... 106 PRODUCT GALLERY ............................................................................................................................................. 116 SUPPLIER INDEX ................................................................................................................................................. 135
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Sourcing Report INDUSTRY OVERVIEW
INTRODUCTION This report provides an overview of the manufacturing and export capabilities of home security product makers in mainland China, Hong Kong, Taiwan and South Korea. The product line of these makers includes intruder or burglar alarms, video doorphones, and fire, smoke and gas detectors. A total of 48 companies were interviewed for this report: 27 from mainland China, 11 from Taiwan, seven from South Korea and two from Hong Kong. For 29 of these respondent companies, Global Sources researchers developed in-depth profiles by conducting face-to-face interviews with these company’s key officials, touring their factories and observing manufacturing processes firsthand. The 19 other featured companies provided Global Sources with key information on their current production capacity, export and price trends as well as their production, export and price projections for the rest of 2005 and beyond. In this report, Global Sources analyzes data based on ownership of the companies and not on the location of production bases. In addition, analysis is limited to the information provided by respondent makers.
of imported components such as PIR sensors, CCD/CMOS sensors and TFTLCD panels. Zhejiang province follows Guangdong as a key manufacturing hub. Zhejiang—particularly the cities of Hangzhou, Ninghai and Wenzhou—hosts 13 percent of factories of mainland and Hong Kong makers. The industry in mainland China is relatively new, with most companies being privately owned and established in the mid-1990s or later. Industry analysts note that due to the industry’s infancy, there is as yet little competitive advantage for mainland China in performance-toprice ratio compared with Hong Kong, Taiwan or South Korea. Still, companies on the mainland and Hong Kong already have experience supplying some major brands and clients. Among these are Carrefour, GE Security, Look-C (Australia), RadioShack, Sony and Wal-Mart. Mainland makers, industry analysts note, are ready to expand their export activities. Certain factors, however, make expansion to overseas markets challenging for mainland companies. According to industry analysts, among these challenges are meeting the
different product safety standards of various markets and the need for mainland makers to secure different kinds of product safety certifications. In addition, analysts also note the lack of turnkey system solutions consisting of control panels and detectors as another factor that weakens mainland makers’ competitive ability in the global market. Taiwan For the Taiwan respondent companies, Chung Ho and Taipei are the key manufacturing centers, with 60 percent of the factories spread between the two. While most Taiwan home security product makers keep manufacturing on the island, one company, Advantech, has moved some of its production to the mainland. Advantech has a factory in Kunshan, Zhejiang province. Although Taiwan manufacturers have many years of experience in the design and manufacture of intruder alarms, video doorphones and fire and gas detectors, these companies focused on the local market in the past. Only in recent years have these companies begun to tap the global market due to the increased demand for home security products. Most makers on the island remain small and midsize. Orders usually come
Major brands and clients served by interviewed makers Mainland China and Hong Kong For mainland China and Hong Kong makers, Guangdong province is the locus of home security products manufacture, hosting 69 percent of the respondent companies’ production facilities. A key advantage of Guangdong as a sourcing center includes the presence of a mature electronics support industry that ensures the availability of services such as mold design and production, plastic injection and SMT. Guangdong’s proximity to Hong Kong likewise facilitates the sourcing
Company Bechamp Chowsons Hongyijia Jiahe Kanrich Longhorn Longway Menix PI Sambo SEC Seju Sharpvision Shidean Smartec Weierying
Brands/clients Hometouch GE Security China Mobile, Pinking Jishian Look-C (Australia), Techgroup (Bulgaria), Seria (Urrague) Alinco, Sanyo, Secom Seco-larm (Taiwan) Haiman (Germany), Dayuanshen (Japan) NTT, Soft Bank (Japan) Sony Urmet (Italy), Golmar (Spain) Taiwan SKS BrookStone (US) Carrefour Kingfisher, Carrefour GE, Wal-Mart, RadioShack, B&Q, Toys R Us Brelco (Holland)
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Sourcing Report SUPPLIER PROFILES
Advantech Co. Ltd Advantech Co. Ltd was established in 1990 and entered into the development, production and marketing of video doorphones in 2000. It has been listed in the Taipei Stock Exchange since 2000. The company, the largest IPC (Industrial PC) supplier in Taiwan, boasts annual sales of $250 million to $300 million. The company has three main product lines—industrial automation, applied computing and network computing. Its core technologies include SBC (SingleBoard Computer) cards and embedded PC cards that the company uses to develop customized products like panel PCs, mobile medical terminals or wireless home security systems. Advantech is one of the early technology developers of SOM (System on Module) that can help buyers develop products with customized specifications within 30 days. In the past few years, the company has been applying its core technologies to applications and products that greatly use wireless, video and HMI (Human Machine Interface) technologies. Among the products developed with the technology are home security products like video-based residential terminals. Currently, it has a monthly production capacity of 1,000 video doorphones with monthly output averaging at 500 units. In 2005, the company forecasts an increase in the production and export figures of video doorphones. Last year, Advantech realized $3 million in sales of video doorphones, with 80 percent or $2.4 million coming from exports. The company generates 60 percent of its total revenues from own-brand sales, under its in-house Advantech brand. The remaining 40 percent come from ODM business. The company allocates 10 percent of its output to the domestic market and ships the bulk overseas. Its main export destination is the Middle East,
The factory handles cosmetic designing, electronic circuit subassembly and final assembly processes in-house, while mold making, plastic injection molding, painting and silkscreening, and sensor/detector module production processes are outsourced to other factories. The company has been implementing a lead-free production process in its factories in Taiwan and mainland China since 2004. The purpose of this is to meet the requirements of Europe’s RoHS on products for export to Europe. Advantech has been manufacturing most of its SBC (Single Board Computer) cards, or embedded cards, and IPC cases in its factory in Kunshan, Zhejiang, mainland China that covers a land area of 24 acres.
which absorbs 40 percent of production, followed by Japan with 30 percent and Western Europe with 20 percent. Products are shipped via Keelung and Taichung ports. To better promote its products in the domestic and overseas markets, the company attends major trade exhibitions such as SecuTech and IFSEC. Manufacturing capability The company is based in Neihu, Taipei, Taiwan and maintains a production facility in Donghu. Its factory covers a total area of 15,744sqm and is equipped with five production lines. Its workforce increased from 1,200 in 2004 to 1,500 in 2005, of which 600 are production workers.
Supplier profile Home Security Production & Export Data Main home security product Year when main product was first produced Monthly in-house capacity in units Export value in 2004 (US$) Export percentage in 2004 (%)
Video doorphones 2000 1,000 2,400,000 80
Manufacturing Index Year established Head office location Number of factory/ies Location of factory/ies Total factory space (sqm) Number of production lines Number of production workers
1990 Neihu, Taiwan 2 Taipei, Taiwan; Kunshan, Zhejiang 112,000 5 600
R&D and Quality Index Management quality systems acquired Quality and safety approval/s of product R&D budget as percentage of sales Total QC workers Total R&D workers
ISO 9001 CE, UL 5 3 3
Export Capability Index % ODM buyers % own brand sales Annual export of all products in 2004 (US$) Target export of all products in 2005 (US$) Markets served Export port/s
40 60 300,600,000 374,220,000 Middle East, Western Europe Keelung, Taichung
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Sourcing Report SUPPLIER PROFILES
Advantech produces more than 40,000 SBC cards, some of them have been used on its own system products, like panel PCs, networking appliances and home security products. According to the company, the assembly for most system products is mostly done in the firm’s factory in Taiwan. The company can provide build-to-order services for most of its system products in three days and product-swapping service in two weeks. QC and R&D The company holds ISO 9001 and ISO 14000 certifications and its video doorphones bear CE and UL approvals. To ensure the quality of output, it conducts QC measures in-house, employing three QC workers. It sources CCD sensor modules, LCD panels, CPUs and plastic materials from Taiwan. The company expects the cost of these materials to go down in 2005. A three-member in-house department also carries out R&D activities. Its current focus is on sensors, cosmetic design and enhanced audio and video quality. In general, the company invests at least 5 percent of its revenues in R&D projects. The company’s R&D team can generally develop customized projects based on its SOM (System On Module) technologies and resources in 30 days. Advantech claims to launch at least 30 products and introduce at least 100 technology patents every year. The company maintains four regional service centers in the United States, Europe, mainland China and Taiwan respectively. It usually keeps at least 70 technical support engineers and at least 50 repair technicians at its service centers. Once the manufacturing facility in mainland China becomes stable, the company will gradually make the Taiwan headquarter its R&D and market center, instead of manufacturing center, according to the company.
Products and prices Advantech’s popular video doorphone models include the EH-7060 and the EH-7105, which are equipped with a 1/3-inch CCD sensor. Both models have a 45-degree angle, music and ring alerts, and a PAL/NTSC-compatible color monitor. These have a 12-month warranty and a minimum order requirement of 100 units. Model EH-7060 comes with a 6.4-inch monitor and sells for $850 FOB. The EH-7105, on the other hand, has a 10.4-inch monitor and is priced higher at $1,400 FOB.
In addition to its standard home security products, Advantech has been helping its ODM customers design products. Among its ODM projects for home security applications are a residential terminal, the EH-7104, for a customer in Japan. The terminal provides building security and has communication capability to connect to the Internet for outside supervision and support. The handset allows users to communicate with building management staff, delivery personnel, and others. It has programmable hot keys and an emergency button to access critical life support services.
Popular export models
Image filename Advantech706
Image filenameAdvantech7105
Product type Model name FOB price (US$) Release date Product approvals/ certifications Minimum order (units) Guarantee/warranty
Video doorphone EH-7060 850 2000 CE, UL 100 12 months
Key features Sensor Angle Monitor Signal system Screen size Alert type
1/3-inch CCD 45° Color PAL/NTSC 6.4 inches Music, ring
Product type Model name FOB price (US$) Release date Product approvals/ certifications Minimum order (units) Guarantee/warranty
Video doorphone EH-7105 1,400 2000 CE, UL 100 12 months
Key features Sensor Angle Monitor Signal system Screen size Alert type
1/3-inch CCD 45° Color PAL/NTSC 10.4 inches Music, ring
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Sourcing Report PRODUCT GALLERY
PRODUCT GALLERY Intruder/burglar alarms Amwell Model name: T360-102 FOB price (US$): 12 Minimum order (units): 100 Guarantee/Warranty: 24 months Detector Type: Passive IR sensor Alarm type: Siren/horn/other loud sounds, telephone autodialer Alarm Volume: 110dB Alarm Time: 5 minutes Number of zones: 6 Net weight (g): 30
Image filename Amwell360-102
Amwell Model name: T360-JA FOB price (US$): 42.5 Minimum order (units): 100 Guarantee/Warranty: 25 months Detector Type: Passive IR sensor Alarm type: Siren/horn/other loud sounds, telephone autodialer Alarm Volume: 110dB Alarm Time: 5 minutes Number of zones: 6 Net weight (g): 120
Image filename Amwell360JA
Amwell Model name: T360-JG FOB price (US$): 45 Minimum order (units): 100 Guarantee/Warranty: 26 months Detector Type: Passive IR sensor Alarm type: Siren/horn/other loud sounds, telephone autodialer Alarm Volume: 110dB Alarm Time: 5 minutes Number of zones: 6 Net weight (g): 105
Image filename Amwell360JG
C&S Model name: PS-588 Guarantee/Warranty: 12 months Weight (g): 1,400g Alarm type: Siren/horn/other loud sounds Alarm Volume: 110dB, 130dB Alarm Time: 60 seconds Color: Gray, Brown Material: Plastic
Image filename C&S_PS588
Image filename C&S_MD01
C&S Model name: GS-021 Guarantee/Warranty: 12 months Alarm type: Siren/horn/other loud sounds Alarm Volume: 110dB, 130dB Alarm Time: 60 seconds Color: Gray, Brown Material: Plastic
Image filename C&S_GS021
C&S Model name: MS-050 Guarantee/Warranty: 12 months Alarm type: Siren/horn/other loud sounds Alarm Volume: 110dB, 130dB Alarm Time: 60 seconds Size (mm): 650 x 600 x 100 Color: Gray, Brown Material: Plastic
Image filename C&S_MS050
C&S Model name: PR-31 Guarantee/Warranty: 12 months Alarm type: Siren/horn/other loud sounds Alarm Volume: 110dB, 130dB Alarm Time: 60 seconds Size (mm): 900 x 450 x 400 Color: Gray, Brown Material: Plastic
Image filename C&S_PR31
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C&S Model name: MD-01 Guarantee/Warranty: 12 months Weight (g): 1,700 Alarm type: Siren/horn/other loud sounds Alarm Volume: 110dB, 130dB Alarm Time: 60 seconds Size (mm): 380 x 250 x 100 Color: Gray, Brown Material: Plastic
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