Makers widen export reach

	The L1000 model from Anviz has a registration capacity of 300 fingerprints.

New strategies are aimed at tapping business opportunities in the Asia-Pacific region and the biometrics segment.

China suppliers of keyless entry locks are realigning their export and R&D priorities to capture a larger client base after experiencing relatively flat sales in 2009.

For one, companies are reducing their reliance on the EU and North America, which together absorb at least 70 percent of China’s outbound shipments in the line. Focusing on the two areas proved to be risky during the financial crisis, with the plunge in demand throwing revenue off the growth track.

Even with both economies shaping up for recovery, several manufacturers are now diversifying into the Asia-Pacific region to recoup losses faster.

On top of suppliers’ list of prospects are Japan, South Korea and Australia, all mature markets with high consumption rates. But some companies also plan to tap fast-rising demand in developing economies such as Singapore.

To cater to upscale residences, factories and offices in the Asia-Pacific, manufacturers are gearing R&D toward high-security fingerprint locks. They are concentrating on this type of biometrics as it is more stable and 10 times less costly than iris, face and voice scanners.

But most suppliers stepping in this direction are hanging on to their traditional card locks selection. This is because fingerprint readers are not yet considered viable for commercial applications given the limited number of users that can be enrolled in the system.

Deoule Stainless Steel Manufacturer Co. Ltd, for instance, will continue to focus production on card locks in the months ahead. In-house R&D work, however, will involve fingerprint models.

The maker currently sends one-fourth of its outbound shipments to Asia-Pacific economies. It hopes to increase this share to 30 percent by year-end.

Meanwhile, some enterprises are covering all their bases by releasing designs with both fingerprint and card access schemes.

Among these is the L100 model from Anviz Biometric Tech Co. Ltd. The unit has a water- and dust-resistant optical sensor and is compatible with Mifare or HID cards. For greater user convenience, the supplier’s L1000 model is designed with the fingerprint reader on the handle.

Anviz is also working on simple thread constructions specifically for the South Korea market.

With these efforts in place, companies are optimistic of 5 to 30 percent export growth for 2010.

Most card and fingerprint locks have two additional entry modes. One is via a numerical code, while the other involves a mechanical key for emergency situations.

Accounting for more than 60 percent of unit cost, the access technologies used not only determine prices but also dictate product performance.

As the industry’s manufacturing history spans just 10 to 15 years, no more than 20 percent of companies can develop and make readers, modules and chipsets in-house. The majority of enterprises, in fact, still import up to 70 percent of critical components.

For high-end models, top-brand providers in North America and Europe are the key sources.

Encrypted IC and RF cards are frequently purchased from Texas Instruments of the US and Germany-based Siemens. Many of the chipsets employed are by Philips in the Netherlands and Switzerland’s EM-Marin. With management software, lock manufacturers usually turn to the UK’s Micros Fidelio.

Components sourced from other locations are installed in midrange designs. These include South Korea-made identification modules for fingerprint locks.

Besides access systems, prices differ based on the construction and materials adopted. Low-end models are assembled from individual lock components. The body is made of zinc alloy and fitted with one latch.

Upscale counterparts have a single integrated design with as many as five latches.

Those for the midrange use aluminum alloy or cast steel, while versions targeting the high end come in brass.

Card locks: Most China-made card locks can be connected to hotel management and security systems. Models often come in an adjustable modular design, allowing suppliers to program the system based on customers’ specifications. They are normally bundled with the encoder and computer software. Prices fall below $100.

Sixty percent of the line uses magnetic stripe readers. Referred to as IC locks, units are fitted with a card insertion slot at the front panel. The required dynamic and static current is 180mA and 3μA. Designs fit 35 to 75mm-thick doors.

Contactless RF-based models account for the rest of output. Rated at 120mA and less than 15μA, these run on 125kHz or 13.56MHz. Working temperature ranges from 0 to 60 C, with relative humidity between 15 and 85 percent.

Versions for doors 32 to 70mm thick are offered.

Because of their more sophisticated and reliable access scheme, models under the second category are priced at least 40 percent higher.

Despite this, IC and RF locks share some similar specifications and features. For one, units are generally capable of recording 800 to more than 1,000 openings. Security mechanisms include a built-in alarm that emits a long beep whenever the door is not closed properly or any form of unauthorized entry is detected. A red LED flashes to indicate that the room is occupied.

Both RF and IC cards can also be configured to enable cashless POS purchases in hotel restaurants and shops.

Four AA alkaline batteries with a 12-month or longer service life are typically used. If the voltage drops to below 5V, an alarm is sounded to notify users that the unit will be shutting down.

Fingerprint locks: Fingerprint locks from China operate with a static and dynamic current of less than 20μA and 100 to 150mA. Most require that the fingertip be placed on the reader for 0.5 second. Data processing and verification are completed within 1 second.

The line has a false acceptance rate of 0.0001 percent or lower, while the false rejection probability is often less than 1 percent.

Keypad-fitted models allow individual fingerprint registration and deletion, eliminating the need to reset the entire database.

A sliding cover can be added to protect the reader against dust and water, although some designs are able to recognize even damp or dirty fingerprints.

Value-added features include a passage mode for high-traffic situations such as meetings. This option disables temporarily the fingerprint-verification process, granting access to all guests.

Audible alarms, which warn users that the door is not locked securely, are also popular.

Average prices in the segment exceed $120 per set. Some high-end releases even top $400.

There are more than 100 suppliers of keyless entry locks in China. Over 95 percent of them are locally owned, with the rest backed by outside financing.

Small companies, which generate below $2 million annually, represent half of the industry. Factories often occupy less than 5,000sqm, while the workforce does not exceed 100.

Forty percent of enterprises are midsize. With yearly sales reaching $20 million, such businesses carry out 70 percent of production processes in 5,000 to 20,000sqm plants. Employees number between 100 and 1,000.

Accounting for 10 percent of the supplier pool, larger operations post more than $20 million in annual revenue.