Travel curbs and foreign competition heighten the need for alternatives to face-to-face business communications
Chinese electronics companies are responding to increased demand by mainland manufacturers and financial services firms for advanced, internet-based video-conferencing systems to cut travel and boost productivity amid increasingly stringent air transport restrictions and growing foreign competition.
Huawei Technologies, China's largest telecommunications equipment maker, and multinational competitors such as Tandberg and Polycom are seeking to benefit as small and large mainland businesses consider alternatives to face-to-face communications with their customers, partners and suppliers worldwide, market experts said.
The shift took on added urgency after the discovery last week of a terrorist plot targeting international airlines from Britain, leading to swift implementation of new security measures at airports worldwide and increased delays and other inconveniences for travellers.
'We have seen an increased number of inquiries from financial services institutions and manufacturers because of the situation. They're asking us for recommendations,' said Tandberg Asia-Pacific president Benny Lee Wai Kheong, 'It is unfortunate that it takes these circumstances to see a spike in business, but our industry will see a flurry of activity covering all markets, not just China.'
Video-conferencing is part of a global US$4.5 billion, real-time collaboration market that includes audio and Web conferencing products and services, Wainhouse Research said. China is the second-largest market for video-conferencing equipment, after the United States, accounting for 15 per cent to 20 per cent of global sales and service revenues, according to the researcher.