Milesight takes a customer-centric approach

Sept. 12, 2016
New to the U.S. video market, company banks on its alternative market strategy and strong product line to earn status

When you are one more newly launched security video camera vendor in the North American market, and one more Chinese manufacturer to boot, there had better be some differentiators separating you from the more than 250 worldwide competitors not to mention the rapidly growing list of Chinese technology imports. Milesight is banking on that difference.

Milesight Technology Ltd, Co of Xiamen, China, which has a global footprint in commercial grade IP cameras and NVRs, recently began operations in the Americas with the creation of its subsidiary Milesight Technology USA based in Miami, Florida, and promptly named Michael Slack as its President. Slack is an industry veteran with stints at Innovonics and Bosch as a Vice President and more than a decade at GE Security as Director of Engineering.

Milesight was established in 2011 as a developer and manufacturer of “best in class” IP surveillance solutions, and as Slack emphasized, “focusing on providing a superior image quality with exceptional flexibility and highly reliable products.” 

Slacks adds that Milesight’s current offering includes multi-megapixel IP network cameras, NVR’s and VMS solutions that are designed to meet a variety of customers’ needs and are manufactured under “strict quality control standards which are what allows us to offer longer than usual warranty periods for our products. “

“We employ over 175 people with half of them being degreed engineers involved in R&D and product design and that is why we are able to provide a fast turnaround on special projects that require engineering support,” says Slack, who points to this as being a major point of differentiation. “We currently market our products globally through a network of distributors and resellers.  We determined that the only way to enter the U.S. market was to be local and that is why early this year we invested in opening our U.S. subsidiary Milesight USA and tasked it to develop this most important market.”          

The Milesight go-to-business philosophy here in the North American market is based on a customer-centric approach that looks to engage reseller channels that are also looking to differentiate themselves from the competitive set. Slack stresses that he wants to provide a distinctive product option that is aesthetically appealing and technologically advanced with a customer service mantra of being an “easy to do business with company.”

“We have been lucky, in our short existence, to have associated ourselves with a select number of organizations that have helped us make a distinction between being a ‘Chinese manufacturer’ and being a ‘development company that manufactures in China.’

We are based in Xiamen, which is located on the southeast coast of China and is known for its educational institutions from which we draw most of our talent which means we are a very young company with a very distinct culture that believes in the potential for innovation and in the value of excellence,” Slack explains. “We have a clear view of our product and its positioning; we are a customer-oriented organization that strives to provide unique product designs that are user-friendly.  We believe in the power of the ‘brand’ and we understand what it takes to make one and, most importantly, we are an energetic company driven by a genuine passion and desire to offer a high-quality solution that is unique and innovative in a market that is crowded with OEM’s and low priced products.”

So the million dollar question is why did Milesight decide to introduce new camera lines into the highly competitive North American market? For Jennifer Cai, Milesight’s Director of Marketing, it was a matter of the market driving the need. Cai contends that the current market dynamics have created a need for a “different” kind of company, pointing out that today’s highly competitive environment and market focus has shifted to price and volume. She thinks some manufacturers are selling products to anyone and everyone to generate the desired volume to benefit from the economies of scale required for maintaining the downward spiral of camera prices. 

“Not long ago the market saw the least expensive cameras that were in the range of $150 to $200; today similar and even more advanced cameras are selling for half of that, all due to the need of manufacturers to sell more to gain the much-needed economies of scale,” charges Cai. “We, on the other hand, believe that there is a good number of resellers looking for something that is unique and will help make them different. They want a company where the features, the quality, and overall attitude are one of support of their channels. We think it is time that becomes the main determining factor with price being a conditioning factor.  It is important to note that our pricing is highly competitive but it is not in the realm of the cheap.”

“Because there is an overabundance of options, which when you look at them, are all the same product in a different box with price being the only differentiator,” Cai adds. “We strongly believe that there is a market out there for a high quality, competitively priced product manufactured by a company that understand the value of the brand and will not over-distribute to the point of diluting it.”

Before launching the U.S. base in Miami, Slack wanted to ensure early success by having product to sell and the company mission statement on solid ground. With an eye on a broad end user market segment, Milesight set up relationships with several key manufacturing reps and other channel partners.

“We are working in a very deliberate way to ensure that we all can walk the walk and talk the talk. We have engaged a number of manufacturer representation firms with whom we are working diligently to get our products on the shelves of a select group of independent and non-traditional distributors, with very good results,” Slack says. “Again, we want to make sure we are in the ‘quality not quantity’ realm and that attitude affords us the possibility of being patient and ensuring we find the right partners. With this being said, we are always looking to expand our network of reps and resellers but we want to be selective to ensure that we fit into their organizations as well.”

When it comes to product, Milesight offers a comprehensive product lineup which ranges from multi-megapixel IP network cameras and NVRs to video management software, meeting various requirements from entry level to high end.

“We are fully committed to working with VMS companies and integrating our offering so their solutions have full control of our cameras.  To date, we have done some important integrations, both on our own and with some major VMS companies, and we will continue to partner with them both from the engineering and commercial sides of the business,” continues Slack. “We offer a very compact line of products that is comprised of six different camera form factors and a line of 4K NVRs comprised of four different version. We only offer 2/3/4MP cameras with unique features. All our products are both H.265 and H.264 selectable, which means that if you purchase a complete solution you will have the latest compression technology available. Our cameras can see color at night with no illuminators to the tune of 0.002Lux, and we also offer very advanced WDR capabilities for extreme environments.”

Cai says Milesight is dedicated to having a strong presence in the U.S. market and has developed a precise roadmap for achieving the market penetration it needs to succeed.

“We have opened an office in Miami to serve the Americas, we keep a reasonable level of inventory and our factory has a very fast turnaround for special orders.  In Miami, we have a fully equipped training center and we provide technical support out of Miami and Xiamen.” Cai explains. “Given our deliberate approach to the market, we have determined that our investment needs to be with our channels and not attending trade shows. So we have developed a very strong brand awareness program that we implement via our resellers aimed to provide them with the tools and knowledge to be successful selling our brand.”

As an industry veteran in the video market, Slack has seen vendors come and go. He strongly believes his company’s focused market strategy and customer-centric approach is the right way and the only way to gain a foothold.

“We want to be the alternative.  We understand that the major players are here to stay and we believe that we can be the alternative for users to look for when something different is called for or needed. Our sights are set on innovation, flexibility, responsiveness and support,” Slack concludes, stating why clients should consider his option. “Milesight has something to offer that others do not.  We are not looking for customers but rather partners. We want to provide our channels with good earning opportunities.”

About the Author

Steve Lasky | Editorial Director, Editor-in-Chief/Security Technology Executive

Steve Lasky is Editorial Director of the Endeavor Business Media Security Group, which includes SecurityInfoWatch.com, as well as Security Business, Security Technology Executive, and Locksmith Ledger magazines. He is also the host of the SecurityDNA podcast series. Reach him at [email protected].