20% - Assa Abloy

In the security market
today, manufacturers of
security products such as
ASSA ABLOY reach their
end-customers 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.
Small and medium-sized customers — This segment is
characterized by the customers’ need for professional
advice and installation. This need is primarily met by
specialized distributors and installers: for example, locksmiths.
ASSA ABLOY works actively to train distributors
and develop custom solutions for small and medium-
sized companies such as stores and offices.
Consumers – The majority of sales are replacements or
upgrades of existing security products. Private consumers
have a great need for advice and installation assistance.
ASSA ABLOY has developed a number of home security
concepts to meet consumers’ needs. Depending on the
geographical market, ASSA ABLOY also works with door
and window manufacturers or specialized distribution
channels such as home improvement stores and
locksmiths.
Heightened demand for electromechanical products
The heightened demand for electromechanical products
is one of the clearest trends in the security market.
ASSA ABLOY also sees greater technical standardization,
making it easier to integrate different components in the
security solution with each other. This development indicates
that manufacturers will be forced to specialize in a
specific product area to be able to maintain their competitive
edge. ASSA ABLOY’s products aim for open standards to
allow them to be easily connected to the customers’ other
security and maintenance systems.
Distribution channels for the security market
ASSA ABLOY
Integration of
security systems
Locksmiths and
security installers
Wholesalers – building and
lock suppliers
Retailers – DIY, building suppliers,
ironmongers, security shops
OEMs, door and window
manufacturers
The security market
11
Changing demand
Customers’ preferences for different security solutions
are becoming polarized, and there is a change in demand
patterns for security solutions at different levels. There is
increased demand for complete security solutions in the
higher segment, but also for good-quality products that
meet the basic security requirements.
Competition
Although some consolidation has taken place over the past
ten years, the security industry is still fragmented in the
global perspective. Some countries have one strong manufacturer
that holds a large share of the local market and
focuses on that, often with limited international activity.
Globally, ASSA ABLOY is the market leader, with its main
competitors five other major players who are active in parts
of ASSA ABLOY’s segment: Ingersoll-Rand, Black & Decker,
Dorma, Kaba and Stanley Works. Three of them are based
in the United States and two in Europe. All competitors are
strongest on their home markets and also have a presence
on some other markets, although none of them has an international
market coverage comparable with ASSA ABLOY’s.
The Asian market is still very fragmented; even the largest
manufacturers have quite modest market shares.
LARGE INSTITUTIONAL AND
COMMERCIAL CUSTOMERS
• Healthcare • Education • Retail
• Hospitality • Offices • Industrial
SMALL AND MEDIUM-SIZED
CUSTOMERS
• Offices • Shops
RESIDENTIAL CUSTOMERS
• Apartments • Houses