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Business

Japan's Secom to break into home security in China

Low-cost service to be delivered through partnership with Haier

Secom security personnel will be sent to a home when an intruder is detected.

TOKYO -- Secom intends to expand into the Chinese home security business in about two years by working with the Haier group.

The major Chinese electronics maker offers a smart-home service that allows customers to control temperature, lighting and other conditions in their homes from such internet-connected devices as smartphones. This service has been rolled out at a pace of about 60,000 to 70,000 households a year.

Secom's home security service will be offered as a function of the smart-home system, creating added value and helping Haier differentiate its service from the competition.

The two companies will co-develop compatible equipment, such as door and window sensors. The system will alert the Secom control center if it detects an intruder. The security company will respond by dispatching personnel from the nearest base.

The Japanese security giant already provides similar services to businesses in China, utilizing a network of some 120 bases it has established in 25 cities, including Beijing and Shanghai, since its entry into the country in 1992. The home security service will initially be offered near these localities. Secom is looking to sign up 10,000 to 20,000 households as clients in the first year.

Haier has introduced the smart-home system at hundreds of thousands of new condominiums and other residential properties so far. Existing clients will be encouraged to switch to new equipment supporting the security service. In addition, Haier showrooms across China will sell Secom security products.

In China, security guards are commonly posted at the entrances to residential communities, so services for individual homes are rare. The new service will likely cost the local-currency equivalent of a few thousand yen (1,000 yen equals roughly $8.75) a month -- about the same as in Japan. Prospective customers include people living in detached homes and luxury condos.

(Nikkei)

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