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The Network Camera Is In A Vicious Price War, Traditional Manufacturers Upgrade The Breakout.
Apr 13, 2018

As the user to experience and service demand is higher and higher, traditional IPC (webcam) manufacturers rely on price or increase the hardware function to get the living space of the way will be more and more narrow, if you can't change train of thought, the traditional vendors will ultimately can not escape collapse or become the fate of the brand company contract. If you want to continue to grow, you need to look at themselves, grasping the development trend, make full use of Internet technologies and platforms, and as an Internet company to redefine and building industry structure and form.

"Kill the enemy 1000, wounded 800" industry scene.

In recent years, with the ascension of the network bandwidth and the popularity of smart phones, webcams obtained rapid development in the domestic market, the first two years looked very high-tech products, "tall", is now gradually been flying off the shelves.

But there are worries behind the market boom: as demand has exploded, large Numbers of vendors and money have poured into the industry, and a fierce price war has begun. According to industry sources, the profits of many IPC manufacturers are now being squeezed lower and lower, and the profit of a camera is only 5 to 10 yuan, and the risk of return is also subject to the return.

Price war can not be ignored behind the reason for this is that a lot of IPC manufacturers caused by a lack of research and development ability, lack of product innovation capability, product homogeneity serious, there is no other way besides price, hope this "kill one thousand, self-injury eight hundred" way to spend the cold winter.

What is the competition for new IPC products?

With this scene in contrast, in recent years, the Internet giant and the traditional leading manufacturers such as 360, millet, the sea, fluorite, etc have launched a new generation of IPC star products, favored by the large number of consumers, a monopoly of domestic market trend.

The success of these products is largely due to the powerful hardware and software technology company, both in hardware and software design and operation provides a more perfect user experience, on the way they operate has great difference with traditional manufacturers. Traditional hardware vendor is basically a one-time profits by selling hardware products, and manufacturers such as 360, millet, the sea, fluorite, not just profit through hardware, but through continuous improve the user experience, user to survive for a long time, and then on "cloud storage" and other value-added project achieve long-term returns. The continuous improvement of user experience will in turn promote the promotion of product brand value, so that users can generate brand dependence, thus making the hardware products gain more premium space.

The Internet era is the era of the user supreme, if only one product from a functional perspective, rather than focus on the user and the product is the depth of interaction, the user is in use process whether to get a sense of accomplishment and pleasure, so the product is destined to be eliminated. The new development trend is that IPC manufacturers need not only a good product, but also a new platform to provide value for the products in this platform. Since any hardware is fixed and non-renewable, it is difficult to upgrade and iterate. At this point, a software platform is needed to continuously increase its functions, features and future space. Hardware is the spear of attack, which is used to open the market and then use the advantage of software to accumulate users, which will become the main competition point of the future of IPC.

To do this requires not only exquisite hardware development and production capacity, but also the ability of subsequent software services and product continuous operation. Traditional IPC manufacturers the advantage of the hardware, to achieve interconnectivity between hardware, software, complementary advantages, to build a new platform, can run for software solutions business cooperation development is a good choice. In market research, we found that many traditional IPC manufacturers have similar needs.

To go against the water, not to advance, to retreat, the unchanging truth.