Security service

Dangers like fire, theft, shoplifting and break-ins can mar the business in retail outlets. Four categories of security that retail premises should take care of are ‘security of personnel (consumers and staff)’, ‘security from fire hazards’, ‘secured way to handle cash’ and ‘security from sho-lifters and thieves’.  Adequate safety-measures must be taken up to avoid untoward and unwanted happenings. Keeping retail premises secured is but protecting profits. Today’s security product market offers equipments in many categories and vary from locks and alarms to CCTV, sensors, detectors and biometric systems. At present, India’s security market is worth around $500 million (approximately Rs 20 billion). It is growing at around 30 per cent annually. Despite the large number of manufacturers, the security product market of India imports many of the security merchandises. Advanced technology has enabled manufactures to devise and offer sophisticated and intelligent security equipments to counter any kind of crime and offence. If due care is taken and required   systems and equipments are installed, there is no security problem that does get solved out. Incorporating and implementing security systems must be done at the very outset of the business.

Why security?

Only shoplifting, common offence in retail outlets, accounts for substantial losses in the revenue of retailers. For a typical retail format in India, the loss due to this particular offence (shoplifting) is around 0.5 to one per cent of the profit. All retail premises are susceptible (if not vulnerable) to various other crimes and offences that include employee pilferage. Emergence of new types of offences has compelled to reassess security requirements for retail premises making the use of integrated and intelligent systems to catch on. Owing to increased crimes and offences in retail premises, retailers are today more concerned and sensitive in security matters.

Defining security needs

Different retail premises have varying degrees of security need. While a mall would require an integrated security system, an ordinary retail outlet’s needs could be fulfilled by the installation of basic equipments such as good locking system, fire extinguisher and alarm. Retailers need to define their security needs before they decide on the requirements and the installation process starts.  Prime factors that define security need for retail premises are location, locality and type or nature of crimes. Other factors will include business type, scale and size of outlet, footfalls, consumer behaviour and merchandise types. Despite varying needs, basic security arrangements are common to all retail outlets or premises. Mr Gurudas Parwani, Business Line Manager (Business Line – Retail), Gunnebo India Ltd, says, “ For small retailers, the minimum requirements are CCTV surveillance, fire extinguisher, safe for cash, electronic article surveillance (for fashion, health and lifestyle segment), burglar alarm and anti-theft systems (for mobile phones, cameras etc.).” 

Products and manufacturers

From world-class sophisticated security products and systems to common products, retailers do have today ample choices. Broad spectrum of security products available in the market include highly sophisticated and intelligent locking systems, access control systems, advanced surveillance system and fire monitors. Biometric equipments and systems make another range of security products. Roughly, security products can be classified into the following categories: surveillance systems, access control devices, alarms and sensors, fire detection and protection equipment and physical equipments.

Formerly Steelage Industry, Gunnebo Iindia Ltd is today well known and has emerged as a leading player in the security business. The company has manufacturing facilities at Chennai, Halol and Mumbai. Business Line Retail of the company offers integrated and comprehensive security solutions to organised retailers and malls. Main solutions offered are as below:

a) Electronic article surveillance systems: Branded as Gateway security and designed basically for retail segment, these systems enable preventing shoplifting of merchandise. These products come in various technologies like electromagnetic (EM), radiofrequency (RF), accustomagnetic (AM).

b) Anti-theft solutions for high shrinkage merchandise: This range of products comprises mainly alarm systems for display of high shrink goods like mobile phones, Ipods, DVD palyers, laptops etc. This range allows for flexibility to customers to touch and feel the product yet keep it secured from shop-lifters. Other ranges of products include  ‘electronic security systems’, ‘entrance control, perimeter protection system and secure storage systems (safes, enclosure and doors).

Other major companies include Zicom, Godrej & Boyce, Philips, Caddx Controls, Keltron and Bergen. Spurred by increasing need for security and protection in various premises like institutions, public places and retail outlets, many new manufacturers have come up in the past few years.

Market:

The category of security products that dominates the market is electronic based devices like electronic locks, detectors, and access control systems EAR systems. In Indian market, products that have best sales prospect include access control system, perimeter protection devices, surveillance devices, devices for open space and interior protection, audio and video surveillance and de-bugging devices, fire alarm and fire fighting equipment, safety equipment and radio communication systems. Commenting about  products that sell most, Mr Parwani says, “ At present, it is safes for cash, fire extinguishers, CCTV and electronic article surveillance systems are the products that are selling most."

Booming of the industry has had a corresponding rise in the demand for security products in India. Mr Parwani says, “ The market is growing very fast. Also, scaling-up of operations by retailers like Pantaloons, Reliance Retail and entry of foreign players (like Walmart and Spar) have marked the retail landscape. Another factor pushing the retail sector beyond our imagination is the bursting economy and demographics.   All this means a whole lot of opportunities fro the suppliers of security products.”

RFID

With security products for retail outlets always evolving, one of the latest technologies in use is RFID, which stands for Radio Frequency Identification. The technology has wide application and can be used in many areas of retail business. RFID has become a buzzword among Indian software companies and many of them are looking to tap this market. In India, attempts are being made to increase awareness about the benefits of RFID. Indian RFID market is rapidly growing indicating tremendous potential. India has around 12 million retail outlets out of which about nine lakh are in the organised sector. This sector, which is the potential user of RFID in retail segment, is expected to grow at least 40 per cent by 2008.

Future

Future belongs to technology. Mr Parwani says, “ The future will belong to the IP based solutions like IP based CCTV surveillance systems. This will enable retailers to have access to the information across the geographies seamlessly. This will also increase the level of integration between CCTV and front-end POS machines.”  Elaborating on, he adds, “The closed cash handling systems also can be seen in future thereby making the self check-outs an enjoyable experience for the consumers without even having cashier as a human interface. This system can reduce the cost of manpower, shrinkages, mismatch and cash management. Gunnebo is already implementing this solution in the Europe and Australia.”