Visiting Tyco Security Lu Jianwen

HC Network: Tyco Security and Fire Protection is among the top global companies in the security and fire protection industry. As a leader in this field, it has significant influence. What are your thoughts on being ranked as one of the top ten foreign security brands in 2005?

Lu Jianwen: I feel very honored. Before this ranking was conducted, we had a brand called AD (American Power), which entered the Chinese market earlier. Later, we adjusted our strategy based on the development of the local market. The real presence of Tyco in the Chinese security market began around 2001 and 2002. Having a single company with one brand recognized by the industry and rated among the top ten foreign security brands in China is truly an honor and a source of pride for us.

HC Network: What were Tyco Security's key developments in 2005 and the first half of this year?

Lu Jianwen: We have been implementing our strategic plan step by step. In 2005, we achieved excellent results. In May, you also attended our press conference where we announced a new business partner. We are setting up a new joint venture to bring China’s leading CMS to the international market. We offer a wide range of security and fire-fighting products, along with engineering services. Our experience from both international and domestic projects will be applied to the Chinese market, which is growing rapidly and highly valuable for any company. Tyco continues to support the growth of the Chinese market according to its own plans, aiming to provide better products, integrated experiences, and alarm services that meet the needs of local customers.

HC Network: Tyco is a well-known global brand. Could you share what unique security products you have introduced in the Chinese market over the past two years?

Lu Jianwen: Compared to major domestic brands, Tyco offers more diversified solutions. We have a complete line of security products, including CCTV monitoring, access control systems, and anti-theft alarms. Last year, we launched the world’s first multi-protocol, multi-format reader, integrating various card technologies into one device. This allows compatibility with different smart cards and proximity cards. These innovations are part of our ongoing digital product development, including networked video surveillance and policy management systems. As security systems grow in scale, managing access rights becomes increasingly important, which is why we developed these tools.

HC Network: These network management systems allow users to assign different levels of access, view specific videos, and control front-end cameras. Is that correct?

Lu Jianwen: Exactly. For smaller systems, authorization is simple, but for large-scale networks, the need for strict access control is much higher. Ensuring proper authorization and managing these processes requires advanced tools. We are continuously developing such solutions and also offer engineering services to provide comprehensive solutions.

HC Network: Tyco covers all aspects of security, yet now there's a greater focus on applying advanced technologies for overall solutions. How does the company view this shift?

Lu Jianwen: Customers today are more interested in complete solutions rather than individual product specifications. As monitoring systems become more standardized, the key differentiator lies in the solution itself.

HC Network: How does Tyco approach marketing? Do you work directly with end-users or through local agents?

Lu Jianwen: We focus on improving service quality and providing tailored solutions. We engage directly with end-users and collaborate closely with engineering companies and system integrators, moving away from a single-agent model toward a more diverse channel strategy. We do not currently have a national agency setup.

HC Network: Does Tyco have plans for local R&D and production in China?

Lu Jianwen: Yes, we already have factories in Shenyang and Shanghai. We are also considering establishing an R&D center in China, though no exact timeline has been set yet.

HC Network: With localized operations becoming a common strategy for foreign companies entering China, how does Tyco see this trend?

Lu Jianwen: It's definitely an inevitable trend. Tyco will adapt to the needs of the domestic market accordingly.

HC Network: What is the current ratio between security and fire protection sales?

Lu Jianwen: Both sectors are equally important. In China, they operate as separate entities under the same group. Currently, the sales ratio is roughly split evenly between the two areas.

HC Network: Are you also responsible for security services?

Lu Jianwen: Yes, we are.

HC Network: Many believe that the development of security services in China is driven by policy changes. What is your view?

Lu Jianwen: You're right. The main barriers to the growth of alarm services are policy restrictions and low customer demand. However, China has committed to opening the security services market by the end of 2006. As the role of public security evolves, we expect more opportunities in this area.

HC Network: How is your cooperation with Vision Company in Shanghai progressing?

Lu Jianwen: The collaboration is going smoothly. We are preparing according to state requirements.

HC Network: Is Shanghai the first city for your security service partnership?

Lu Jianwen: Yes, it's our first project in the country.

HC Network: Tyco has an electronic article surveillance system, a distinctive product. Can you explain it further?

Lu Jianwen: The EAS system is widely used in retail and special industries like libraries. It helps prevent theft and loss. Tyco leads this market globally, holding over 60% of the international market share. Many top retailers, such as Walmart and Hualian, use our system.

HC Network: How does this system differ from RFID technology?

Lu Jianwen: Unlike RFID, which uses chips to store information, EAS relies on acoustic magnetic technology. The tags don’t store data and are deactivated at checkout, preventing false alarms at exits.

HC Network: Thank you for sharing so much about Tyco Security today. It's been a pleasure speaking with you.