How can the electronic fence break through the "28 odd circle"?
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When discussing the security industry in Shanghai, one topic cannot be avoided: Shanghai's electronic fence industry leads the nation. Many people are curious as to why electronic fences are so prominent in Shanghai. Why do they face challenges when trying to expand their presence in the broader national market?
Through in-depth discussions with various e-fence companies, some businesses mentioned that electronic fences have limited technological depth and restricted market reach. This makes it difficult for these products to transition from success in Shanghai to widespread adoption across the country.
It is known that perimeter defense, as the first line of protection, remains dominated by infrared products. However, the market for these traditional solutions has been declining in recent years. What is preventing Shanghai's electronic fence industry from achieving its goal of national expansion? Exploring this issue also means examining how China’s perimeter defense products can innovate and grow.
During my visit to Shanghai in 2012, I noticed electronic fences and warning signs installed in many locations. Industry insiders revealed that nearly 80% of China’s electronic fence companies are located in Shanghai, and the city controls approximately 85% of the national market. However, from a national perspective, the so-called "Shanghai phenomenon," driven by uneven development, has inadvertently陷入 what could be described as a "20-80 rule."
The rise of electronic fences in Shanghai from its humble beginnings to its current state would not have been possible without the city’s support. The French LACME Group Shanghai Representative Office introduced electronic fences to China in 1999 and established itself here. Shanghai became the birthplace of China’s electronic fence industry.
After successfully introducing foreign products, the electronic fence quickly captured the Shanghai market. Starting with imports, it has now evolved to include independent research and development, production, and sales. The Shanghai electronic fence industry has flourished and become a hallmark of the city’s security sector. A company representative mentioned that there are over 80 firms nationwide specializing in electronic fence products, with more than 30 focusing on production and R&D, and 70% of these companies are based in Shanghai. Clearly, Shanghai is a hub for electronic fence companies. While the exact market share might vary, it is generally agreed that Shanghai accounts for 85% of the national electronic fence market. Although the accuracy of these figures may be debatable, they provide a snapshot of the current state of the domestic electronic fence industry. According to recent surveys, the Shanghai electronic fence does stand out uniquely.
"In the past, we relied on infrared radio systems for perimeter protection. In 2007, the Shanghai Public Security Bureau issued a notice requiring new residential complexes and other security projects to adopt electronic fences. As far as I know, the new communities around us, built since 2007, have all implemented electronic fences. These products have proven effective, especially in high-security applications where their deterrent effect is significant," explained the property manager of a community in Minhang District during a visit in June 2011.
Statistics show that out of 86 sampled communities, 18 built after 2007 were equipped with electronic fences. About 60% of pre-2007 communities also installed them, while those without were mostly built before 2000.
Nationwide, electronic fences have maintained an average annual growth rate of 20%. However, this growth is largely concentrated in Shanghai, Jiangsu, and Zhejiang provinces. According to Hong Tianyu, General Manager of Shanghai Laikemi Qiantong Electronic Technology Co., Ltd. (Laikemi), only three provinces—Shanghai, Jiangsu, and Zhejiang—have nearly completed the national electronic fence market.
The "Shanghai Phenomenon" was made possible by strong administrative support. The electronic fence took root in Shanghai and quickly adapted to local conditions. Yet, despite a decade of progress, it has struggled to expand nationwide. Faced with this challenge, Shanghai-based electronic fence companies are seeking solutions.
To make electronic fences a national success, the industry must focus on self-regulation, standard-setting, and increasing public awareness. Companies agree that the rapid growth of the Shanghai market was partly due to early policy incentives. In 2007, the Shanghai Municipal Public Security Bureau’s Technical Protection Office issued a notice promoting the use of electronic fence perimeter alarm systems. The notice mandated that new residential areas and security projects prioritize electronic fences over traditional infrared detectors, except in cases where supplementary infrared systems were necessary.
This policy played a crucial role in boosting the market for electronic fences in Shanghai. However, replicating this success nationwide remains a complex challenge. The industry must address issues of technological innovation, cost-effectiveness, and adaptability to different environments to ensure electronic fences become a nationwide solution.
In conclusion, while Shanghai's electronic fence industry has achieved remarkable success, breaking the "20-80 rule" requires more than just policy support. It demands collaboration, innovation, and a commitment to improving the technology and accessibility of electronic fences across the country.