Market Requirements and Technological Changes in the Pin and Bus Connector Industry
At present, the full line of pin array and bus array connectors can be purchased from Chinese Mainland. Pin and motherboard to board connectors, as indispensable and important accessories in products and equipment, are increasingly being purchased in many product application fields. And compared to other key components, connector products have a wider range of choices and a larger local procurement space, so their industry entry barriers are not high.
At present, the entire market for row pins, row buses, and connectors is mainly facing competition from two aspects. The first is the threat of substitutes. Currently, the main substitute for connectors is terminal blocks, which are not a significant threat in the mid to high end market. However, in the mid to low end market, there is fierce competition. When buyers face cost pressure, they often replace connectors with relatively inexpensive terminal blocks. The second issue is that the profits of enterprises are squeezed by buyers and suppliers. The buyers of connectors are mainly manufacturers of products and equipment, with high market concentration and standardization. Their profitability is declining in the current market economy environment. Therefore, in the procurement process, they often use the current transparent information background to continuously lower prices, while arranging pins The main suppliers of the manufacturer of busbar connectors are raw material suppliers such as aluminum, copper, silver, gold, and engineering plastics, with a high concentration and standardization of the industry; The transaction volume of the buyer is very large; The degree of Product differentiation is very small, and the cost of converting the seller is relatively small; The possibility of forward integration is not high; The information of both parties is quite transparent; Overall, the bargaining power of the seller is relatively low, which results in a small profit margin for the enterprise.
Through in-depth investigation and analysis, the positioning and strategic expansion strategy of the row needle row mother market are formed, and the segmented market where the row needle row mother is located is determined. The total demand, market capacity, and prospects of the Chinese row needle row mother market are judged, and the target market is clarified. The user, purpose, product characteristics, price, user needs, and preferences of the target market are analyzed and matched with corresponding marketing strategies.
In this process, the company continues to grow and grow. In recent years, due to the rapid development of upstream industries such as pin, bus, and connector, the 3C industry, including computers, communication products, and consumer electronics, as well as data transmission business, has great potential for development in China. Another main development direction of connectors is LED display screen connectors. Currently, the LED display screen industry in China is developing rapidly, The demand for connectors is also correspondingly strong, but as a new field, Chinese manufacturers still have significant shortcomings in terms of technical strength and production experience.
Faced with the market and technological changes in pin, bus, and connector, Chinese manufacturers should gradually break away from homogeneous competition in mid to low end product types, actively track the cutting-edge technologies of pin, bus, and connector, learn new technologies and processes of connectors, continuously develop new products, and expand high-end product lines.
