20% - Assa Abloy

The security market
10
By combining the
ASSA ABLOY logo with
the individual brand logos
we retain their existing
equity and add the global
power of the master brand
ASSA ABLOY, which we will
continue to build. There
will be some exceptions for
a small number of brands
that have special roles, such
as Yale which targets the
consumer and is already
well respected globally.
Distribution channels
In the security market today, manufacturers of security
products such as ASSA ABLOY reach their end-customers
mainly through a variety of distribution channels. Many of
ASSA ABLOY’s products are sold in small volumes to many
end-customers with very different needs. This has led to a
largely local and fragmented distribution of mechanical
and electromechanical security products.
Specification of security solutions
of growing importance
Bringing new and innovative solutions to market requires
working closely not only with distributors but also with
architects, security consultants and major end-users. This
collaboration stimulates demand from the distributors and
customers. Construction and lock wholesalers and locksmiths
have a key role in delivering the products specified
for various construction projects. ASSA ABLOY has developed
a close collaboration with architects and security
consultants to specify appropriate products and achieve a
well-functioning security solution. Many door and window
manufacturers install lock cases and fittings in their products
before delivering them to customers.
In contrast, electronic security products go from manufacturer
to end-user mainly through security installers and
special distributors. The products are also sold through
security integrators who often offer a complete solution for
installation of perimeter protection, access control and
computer security.
The role of distributors
One of the most critical parts of a well-functioning door
and security solution is the installation of the components.
ASSA ABLOY works closely with its distribution channels to
Aftermarket 1 , 67%
New construction, 33%
1 The aftermarket consists
of renovations, rebuilding,
extensions, replacements
and upgrades.
offer the end-customers the right products, a correct installation
and thereby a well-functioning security solution.
The distributors are also important in handling service and
support after installation.
The role of the distributor can vary between different
customer segments. On some markets in the commercial
segment, distributors can act as consultants, technicians
and project managers to create good security solutions.
They are well familiar with the customer’s needs and
ensure that the products meet local regulations.
As technology moves toward more complex security
solutions, the distributors need increasing skills levels.
On many markets specialized security distributors may be
locksmiths with expert knowledge of mechanical and electromechanical
security products. They buy directly from
the manufacturer or via wholesalers, providing advice,
products, installation and service. Some locksmiths now
have an increased focus on electronics, while IT integrators
are beginning to add physical security solutions to their
offer.
Customer groups
Major customers — These include airports, commercial
establishments and hospitals through which a large number
of people pass daily. ASSA ABLOY usually has primary
contact with the customer’s head of security, a person well
familiar with the security needs and who participates
actively in planning the security solutions. Lead times for
this kind of project are often long and based largely on
custom solutions. Distribution and installation are largely
handled by installers and locksmiths. ASSA ABLOY’s principal
end-users are industrial and institutional customers,
who account for 80 percent of sales, while private customers
account for 20 percent.
What drives demand? ASSA ABLOY’s total sales by region
Eftermarknad 1) , 0.67%
Nybyggnation, 0.33%
Europa, 48
Nordamerika 37
Australien och
Europe, 48 % Nya Zeeland 6
North America, 37% Asien 6
Australia and Central- och
New Zealand, Sydamerika 6% 2
Asia, 6%
Afrika 1
Central and
South America, 2%
Africa, 1%