Anti-theft gadget cos devise aggressive sales strategy
It’s alarms for burglars as households get gadget-savvy and security systems’ companies use aggressive sales strategies and bundled services to get in homes.
By TNN |
HYDERABAD: It’s alarms for burglars as households get gadget-savvy and security systems’ companies use aggressive sales strategies and bundled services to get in homes. Devices like alarms, motion sensors and video surveillance are making inroads as more and more households don’t want to take a chance.
Incidents like the 9/11 bombings and increased threat perceptions among urban households are throwing open a vista of opportunities for electronic security companies. “A few years ago, the market was growing at only 4% or so. Now it is much faster. This surely means that people are becoming more aware and want electronic security,” Zicom CEO Santonu Choudhury told ET.
Zicom has taken to the retail sales strategy to allow for walk-in purchases and servicing. “Retailing makes absolute sense. We believe walk-in will increase awareness and break the myth that electronic security is expensive," he said. “We do this by providing basic security system packages at a low price," he added.
"Bundling of security systems with greenfield infrastructure projects is another way of selling security systems. They are already fitted into tenements and the occupant doesn't have to plan or purchase his security," says security expert Captain Raghuram.
"This is the best way to go forward in making people aware of the need for security and obviate its use," says DATS India country head VV Sriraman.
The market for consumer security systems is currently in the range of Rs 250 crore to Rs 300 crore and is expected to grow at over 30% a year. The market is expected to touch Rs 700 crore in two to three years. According to industry sources, there are over 50 million urban households, representing a huge potential market.
"It may be too early to actually take up retail selling. The best way to sell now is through bundling," says Mr Sriraman.
Zicom's Mr Choudhury, however, says, "Many people live in already constructed homes. They need security as well." With basic security systems like burglar alarms, video phones priced as low as Rs 6,500, affordability would not be a major issue.
"The consumer segment we are talking about is still 'latent' and will take a lot of effort to break into," says security expert Captain Raghuram. "So far, only upper class households took to electronic security. The market we are talking about is the average Indian household that is not sensitised to need for such security," he adds. Also, the average middle class household is burgled on an average only once in a lifetime.
Incidents like the 9/11 bombings and increased threat perceptions among urban households are throwing open a vista of opportunities for electronic security companies. “A few years ago, the market was growing at only 4% or so. Now it is much faster. This surely means that people are becoming more aware and want electronic security,” Zicom CEO Santonu Choudhury told ET.
Zicom has taken to the retail sales strategy to allow for walk-in purchases and servicing. “Retailing makes absolute sense. We believe walk-in will increase awareness and break the myth that electronic security is expensive," he said. “We do this by providing basic security system packages at a low price," he added.
"Bundling of security systems with greenfield infrastructure projects is another way of selling security systems. They are already fitted into tenements and the occupant doesn't have to plan or purchase his security," says security expert Captain Raghuram.
"This is the best way to go forward in making people aware of the need for security and obviate its use," says DATS India country head VV Sriraman.
The market for consumer security systems is currently in the range of Rs 250 crore to Rs 300 crore and is expected to grow at over 30% a year. The market is expected to touch Rs 700 crore in two to three years. According to industry sources, there are over 50 million urban households, representing a huge potential market.
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"It may be too early to actually take up retail selling. The best way to sell now is through bundling," says Mr Sriraman.
Zicom's Mr Choudhury, however, says, "Many people live in already constructed homes. They need security as well." With basic security systems like burglar alarms, video phones priced as low as Rs 6,500, affordability would not be a major issue.
"The consumer segment we are talking about is still 'latent' and will take a lot of effort to break into," says security expert Captain Raghuram. "So far, only upper class households took to electronic security. The market we are talking about is the average Indian household that is not sensitised to need for such security," he adds. Also, the average middle class household is burgled on an average only once in a lifetime.
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