Dear Readers
The lead story that we carry this month will give you an idea of what is going on in the advanced markets such as the United States of America where home security is big business and where the ‘Do-it-Yourself’ (DIY) culture is a norm and most people themselves carry out minor plumbing, electrical, carpentry and painting jobs in their homes, and this has been going on for decades, primarily because of the high cost associated with skilled labour. However, the situation in India is very different.
While DIY is an established phenomenon in the developed world, it is still in a nascent stage in India. However, India has a huge potential for DIY mainly due to its rapidly growing economy and surging demand for urban housing. A study by Professor Ganesh N. Prabhu at the Indian Institute of Management, Bangalore indicates that the younger households tend to be more active DIYers compared to those households which are in later stages of their life. Households which have recently moved to a new place also exhibit similar characteristics. Families with a skilled manual trade background are more amenable to the DIY concept. Similarly, families with more adults and those who own the home take up DIY more seriously.
However, the study has also shown that people with higher education and higher income levels are more likely to rely on outside help. This is perhaps one big reason that electronic home protection systems comprising of intrusion & fire detection and video surveillance as its primary components is unlikely to feature in the Indian DIY market for a long long time, as it has been observed that it is usually the well off and educated class which typically invests in automated home security systems, as they perceive the risks associated with affluence in a developing country.
Interestingly, after decades of market education and development efforts by global industry majors such as Tyco-ADT (now Johnson Controls), Honeywell and local companies such as Eureka Forbes in home security systems, it is only now that we are finally seeing some traction in the initiatives launched by companies like VProtect in Gurgaon that primarily offer bundled wireless electronic security and surveillance systems to high net worth households coupled with 24×7 central monitoring and response services. Wireless alarm systems aren’t hard-wired into your electrical system, which makes them easier to install, expand, move, upgrade, and change. With rising risk and cost of manned security consumers are beginning to realise the benefits of lower upfront costs coupled with reasonable recurring monthly payouts for electronically protected homes.
All in all, I foresee the residential security market to be the focus area of even large telecom players such as Reliance Jio in the very near future, as they continue rolling out additional products and services to their consumers. The increased marketing efforts will lead to a demand being created for home security systems in India.
Till we meet next month, stay safe and keep others safe.
G B Singh
Group Editor
Email: gbsingh@1stasset.org
Follow me on @EditorGB
Connect with me on Linkedin.com/in/gbsingh9
