Summary：The involvement of internet giants has impacted traditional security companies while also prompting them to rethink their strategies. Security companies like Hikvision and Zhejiang Dahua have established sub-brands for internet-based security products, developing and selling multiple internet-based security products on platforms like Tmall, JD.com, and their own e-commerce platforms. Meanwhile, security companies like Qiaoan have shifted their focus from traditional line-of-sight security to more modern, traditional security solutions.
How the Security Industry Is Approaching Cross-Border E-Commerce
The entry of major internet companies has disrupted traditional security firms while simultaneously prompting them to rethink their strategies. Companies like Hikvision and Dahua have established sub-brands for internet-connected security products, developing and selling various items on platforms such as Tmall and JD.com, as well as on their own proprietary e-commerce sites. Meanwhile, companies like Qiaoan have simply moved their existing offline product lines to online sales channels. Others, such as Tiandy, have entered the e-commerce space through joint product development with internet giants like Tencent. Traditional security companies have employed a wide variety of strategies to make their mark in the e-commerce sector.
After several years of development, sales volumes for security products on e-commerce platforms have stabilized. Product homogenization has created a bottleneck for creativity and innovation within the Chinese security industry, while cutthroat price wars have forced hardware manufacturers to shift their focus toward software and services—areas offering higher technical value. By prioritizing "creation" over mere "manufacturing" and replacing simple production with R&D and design services, companies can break through the fierce competition and build core competitiveness against both domestic and international rivals.
As the world's largest production base and consumer market for security equipment, China's security industry—led by giants like Hikvision, Dahua, and Tiandy—is beginning to make its presence felt globally. While e-commerce offers an effective pathway for domestic security firms to expand overseas amidst intense international competition, they currently face significant challenges.
Higher Demands on Enterprises and Products
First, products must feature multilingual interfaces and be capable of operating in diverse global environments. Companies also need personnel familiar with the service requirements of different countries. These factors present a significant barrier to entry for traditional security firms; to succeed in global expansion, they must first strengthen their internal capabilities.
Logistics Challenges
Cross-border e-commerce transactions are characterized by small, frequent batches, fragmented orders, short procurement cycles, and long shipping distances, all of which place high demands on logistics. Current logistics methods used in Chinese cross-border e-commerce include China Post’s international small packet service, international express delivery, and overseas warehousing. Each method has its own advantages and disadvantages. For cross-border e-commerce, selecting a logistics service requires balancing factors such as cost, speed, cargo safety, and the consumer's tracking experience for goods in transit. Securing affordable, fast, and secure international logistics is currently the primary concern for cross-border e-commerce enterprises.
Payment Issues
While payment processes in traditional foreign trade are mature, standardized, and supported by robust dispute resolution mechanisms, cross-border e-commerce payments are still in their infancy. They face numerous unresolved issues and higher risks regarding system stability, cybersecurity, the issuance and use of digital currency, legal regulation, and dispute resolution.
Credit Systems and Dispute Resolution Mechanisms
In cross-border e-commerce, significant information asymmetry arises from linguistic and cultural differences. Coupled with low trust in foreign e-commerce firms, this asymmetry becomes a major barrier to transactions. Consequently, establishing a credit system capable of verifying identities, vetting qualifications, and assessing the creditworthiness of both buyers and sellers is an urgent priority. Furthermore, since cross-border e-commerce involves parties from two or more countries, determining which jurisdiction's laws apply and how to resolve disputes are unavoidable challenges.
After-Sales Issues
For domestic e-commerce, security equipment manufacturers can have sellers return products to the factory for repairs, or—in the case of some manufacturers—utilize provincial repair stations for local servicing. However, in cross-border e-commerce, returning goods to the factory is difficult due to long distances, high shipping costs, and extended turnaround times; the prospect of establishing a global network of repair stations is often too daunting for security enterprises. Effectively addressing after-sales service remains a major challenge for the growth of cross-border e-commerce in the security sector.
Yet, opportunities lie behind these challenges. The cross-border e-commerce industry is currently booming, presenting new prospects for security enterprises. By successfully capturing the market, these companies can strike gold amidst the surging tide of cross-border e-commerce.
With the domestic security market remaining sluggish and highly competitive while overseas markets recover, entering the international arena via cross-border e-commerce is a compelling option for domestic security firms. Moreover, the advent of the Internet has lowered transaction costs, enabling collaboration that transcends corporate boundaries. For industry professionals, this means they no longer need to rely entirely on a single company to leverage their skills, connect with the market, or realize their personal value. Cross-border e-commerce has emerged as a new growth area within the broader e-commerce landscape. In the convergence of the security industry and e-commerce, internet giants entering the security sector possess two key advantages: first, they excel at rapid product iteration and upgrades—particularly by leveraging continuous software improvements to boost user stickiness; second, their service models target the consumer market, where word-of-mouth and online sentiment help strengthen brand image while reducing marketing costs; and third, their marketing strategies prioritize rapid market share expansion and user base growth—often utilizing angel and venture capital for aggressive early-stage scaling, prioritizing scale over immediate profitability, and employing tactics like free offerings or low pricing to capture the market. In contrast, traditional security enterprises hold the advantage of dominating the vast majority of the existing market and possessing robust offline distribution channels; the critical challenge for them lies in transforming these strengths into online influence.
As a leading domestic security enterprise, Tiandy Technologies was a first mover into the e-commerce space amidst the "Internet+" wave, establishing flagship stores on platforms like Tmall and JD.com. Breaking away from traditional product mindsets and collaborating continuously with internet companies like Tencent, Tiandy launched product lines such as the "Xiao Tian" camera and the Tencent IoT camera, generating significant industry buzz. Tiandy has long adhered to a strategy of providing comprehensive solutions and dedicated customer service—a path we remain firmly committed to. Furthermore, as the market matures, mastering core technologies is essential for future success; such mastery provides the fundamental capital required to gain a foothold. Consequently, our focus on "Starlight" technology is not merely a short-term promotional priority but a long-term strategic commitment. These technological advantages provide a solid foundation for Tiandy’s internet product development, though our e-commerce operations will naturally require time to mature and refine.
Chinese security enterprises expanding overseas often encounter localization challenges—such as unfamiliarity with local markets, regulations, and sales channels—which can hinder market entry. The advent of the cross-border e-commerce era offers a way to circumvent some of these issues, making it an attractive option for security firms looking to expand internationally. However, it is important to recognize that while overseas markets are vast, many opportunities remain out of reach; therefore, a successful overseas strategy requires a focused approach, targeting specific key markets for expansion. Another point particularly worth noting is the rapid growth of the overseas consumer security market; statistics indicate that this segment now accounts for over 60% of the global security market. Furthermore, these consumer-oriented products are especially well-suited for e-commerce sales.
In reality, Chinese security manufacturers are continuously enhancing their technical capabilities, gaining greater competitiveness in the mid-to-high-end network product market and increasingly demonstrating a competitive edge overseas. It is foreseeable that as more Chinese manufacturers succeed, they will occupy an increasingly significant position in the international market.
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