Security Survival Crisis in SMEs

Recently, there was a news report: In recent months, bad news about SMEs has come one after another: According to the statistics released recently by the Ministry of Industry and Information Technology, in the first two months of this year, SMEs above designated size achieved a deficit of 15.8%, a 0.3% increase over the same period. The growth rate of loss amounts to 22.3%. The size of the small businesses, the situation may be more serious losses ...... artificial inflation, exchange rates rise, raw material prices go; labor shortage, with the electricity shortage, shortage of funds ...... crisis after the second round of the international financial crisis, is approaching to SMEs .

As the development of a good security industry in the recent development of the performance is not calm, security and SMEs are also facing the same problem, security companies, especially small businesses more difficult than ever, some companies The impact of market changes has become precarious.

Security and SMEs face the revaluation of the RMB On June 20, one year after the exchange reform, the RMB exchange rate against the US dollar went from 6.8275 to 6.4696, surpassing the 6.47 mark for the first time, and the cumulative appreciation exceeded 5.5%. Since the beginning of this year, in the context of the weakening of the US dollar, the “fragmented” appreciation trend of the RMB exchange rate has become more pronounced. Following the breakthrough of the 6.60 mark on the central parity of the yuan against the US dollar on January 13, it broke through the 6.50 mark again on April 29. The RMB exchange rate entered the 6.4 era. The issue of appreciation of the renminbi has once again become the focus of social concern.

The new height of the exchange rate of RMB will bring pressure to security companies. Looking at the development of Chinese security companies in recent years, we can see that the international market has increasingly become a focus area for security companies, and even an important support for development. China’s security companies’ products have been expanding in export. With the revaluation of the renminbi, those companies that sell most of their products for export are bound to suffer the greatest impact, and other related export companies cannot escape this catastrophe. In fact, the appreciation of the renminbi for security companies engaged in product exports, the biggest pressure comes from the relative increase in the price of our products. This is the biggest pressure and blow for Chinese companies that often use price strategies as the core means of competition. This also led to the overall weakening of China's production cost advantage.

In such pressure of appreciation of the renminbi, large enterprises in the security industry can jump out of low prices through industrial upgrading and upgrading of product technology, achieve transformation at the technical level, and resolve the problem by participating in international competition and occupying overseas markets through high value-added products. crisis. However, the vast majority of small and medium-sized enterprises in the security industry are not so easily able to lift the crisis. These small and medium-sized enterprises in the domestic fierce competitive market have no great advantages in terms of products, technology or brand. Therefore, many SMEs have turned the battlefield to foreign markets, and foreign markets have even become a market in which some enterprises rely. However, the continuous breakthrough in the exchange rate of the renminbi has made it easier for SMEs, which have only a price advantage, to go to a dead end. On the other hand, the continued appreciation of the renminbi will also lead to an increase in the import of foreign security products and intensify competition. Under the double-sided attack from domestic powerful domestic enterprises and foreign advanced enterprises, the space for survival of China's security and small and medium-sized enterprises has also become more narrow.

Security industry entered the era of meager profits SMEs transition difficult Security industry has experienced 31 years of development has gradually entered the mature stage of the market, the security industry once known as the profits industry in the continuous development of competition in the profit space is gradually "shrinking." At present, artificial rise, exchange rate increase, and raw material price increase; labor shortage, electricity shortage, and shortage of capital, the high-pressure era, China's security industry is security product manufacturing, marketing costs continue to rise, sales prices are still low in the status quo. The security industry in China is rooted in the economic environment with Chinese characteristics. The small and medium-sized enterprises in the security industry, especially small ones, account for the vast majority. These enterprises are still at the disadvantages of small and unequally distributed enterprises, low competitiveness, and insufficient access to investment and financing channels. .

Since the beginning of 2011, the price reduction of DVRs and the recent price reduction of hard disk recorders have caused a lot of shocks in the entire security industry. The affected SMEs are even more quiet. Some insiders believe that this price reduction may reshuffle the entire DVR market and will also promote more standardized development of the entire industry. In this turmoil, some SMEs that are not prepared to respond or have relatively weaker risk are likely to face the outcome of being eliminated. Of course, the competition in the market is cruel, and the market development is also changing rapidly. Any disturbance in the market will be a disaster for some companies.

With a lesson from the past, many SMEs began to take a diversified path in order to be able to resist risks in various aspects. However, there are also industry insiders: The future security monitoring market tends to diversify. The demands of customers are getting higher and higher, the needs of customers are numerous and complex, and the resulting market segments are also growing. We need to provide more abundant products to meet the rapidly-differentiated market. The price war is more like a catalyst for this differentiation and has accelerated the evolution of the pattern. We are no longer satisfied with the traditional 4, 8, 16 roads, we need 24, 32 roads as sales cuts; we are no longer satisfied with the use of CIF; the popularity of D1 and HD is also imperative; we do not expect in the general The DVR market earns a lot of money. We need to open up more market segments and launch richer dedicated DVRs to generate huge profits. Many colleagues worry that the diversification of products is easier said than done. This requires more investment and product quality will be more difficult to control. If these problems are not solved, then diversification will be a disaster. Many people dare not go further.

Many small and medium-sized enterprises in the security industry do not have the financial strength and the ability to resist risks. Therefore, the smooth transition of SMEs has become difficult in response to a market that may change at any time. Of course, some people think that the development of the security industry has entered a stage of rapid development. The rapid growth of the industry has prompted many people to do everything possible to join this industry. Although the profits of security products are decreasing, it is still a very profitable market in the next five years.

Security SMEs how to deal with the survival crisis As the saying goes: The crisis crisis has "danger" to have "machine". Faced with difficulties, even challenges are opportunities. Even if the market environment is worse, many SMEs still persist in their efforts to survive. Security companies are also starting from small businesses. Safeguarding small and medium-sized enterprises should take it seriously. Analysing the advantages and disadvantages, taking advantage of them and avoiding them will certainly benefit the development of the company.

(1) The vitality of SMEs in maintaining a vibrant society lies in the diversity of social existence. It is the same as the development of internationalization. The diversity of the world is the basic driving force for the world to maintain vitality and progress. Without diversity, social development will become rigid. Without the vitality competition of SMEs, the survival of enterprises cannot continue. The vigorous development of small and medium-sized enterprises has made an important contribution to the socio-economic development. China's security companies are basically small and medium-sized enterprises. This is a characteristic of China's security enterprise groups and an advantage. Corporate history is the survival and development of competition, innovation process, as long as you follow the rules of the enterprise entrepreneurs to master the basic national policy, comply with the external environment, you can get another opportunity in the innovation and development of competition.

(II) The security market that taps into the lives of the people The analysis of the application of enterprise products, government needs, and national security, such as the national vital departments, banks, security facilities of securities institutions, are undoubtedly the goals that security companies strive to achieve. For the vast needs of the community and the people, it involves people living in peace. It is a big market that security companies should strive to open up.

From the perspective of industrial development, once the company’s products cover and penetrate into people’s lives, the development of this enterprise and even the entire industry will have a promising future. So much to meet the market, but rather that meet the needs of people and society, which requires more security companies under our effort, for analysis deeper, to make their products to get more market share in the competition for enterprises struggle Have a bigger living space.

(C) SMEs to make unremitting efforts to become stronger as China's security industry SMEs how to do in the fierce competition, stronger, bigger, to accommodate future economic development and social stability China, SME entrepreneurs Should pay enough attention. SMEs must be good, strong, and big. From the point of view of the enterprise itself, it is more important to focus on strengthening than to focus on making it bigger. It is often not pursued in a big way, and the foundation is often not solid. Only on the basis of strength and strong reserves of innovation can we truly become stronger, stronger, and bigger. In addition, in the information age, large enterprises and small and medium-sized enterprises are equal on the network platform. As long as the products are suitable and the quality is excellent, they can compete equally with large enterprises on the Internet and can obtain corresponding market shares. Therefore, companies must strengthen themselves and pay special attention to their own creation.

In today’s high-pressure era, who can save the survival crisis of China’s security SMEs, in addition to making full use of the country’s supportive policies, the most important thing for enterprises is to strengthen their own development, seek new outlets, find new opportunities in the pressure, and make a crisis. Turn it into an opportunity to continuously accumulate its own strength and move toward a higher class.