China's pin and female connector industry has always had an advantage in the low-end market. Currently, Chinese pin and female connector manufacturers are entering the mid-range field and paying more attention to product quality. At the same time, they are still engaged in price wars with their Asian counterparts and often the winning side. At present, the full line of pin array and bus array connectors can be purchased from Chinese Mainland. Pin and motherboard connectors, as indispensable and important accessories in products and equipment, are increasingly being purchased in many product application fields. And compared with other key components, the selection range of connector products is wider, and its local procurement space is larger, so its industry entry barrier is not high. As a professional manufacturer of connectors such as pin headers, busbars, and circular holes, Wang Jianbo, General Manager of Shenzhen Jinling Electronics Co., Ltd. (JILN), has his own views on this. In his opinion, in the current economic situation, there are both threats and opportunities.
According to Wang Jianbo's analysis, the current market for pin headers, female connectors, and connectors is mainly facing competition in two aspects. The first is the threat of substitutes. Currently, the main substitute for connectors is terminal blocks, which do not pose a significant threat in the mid to high end market. However, they face fierce competition in the mid to low end market. When buyers face cost pressures, they often use relatively inexpensive terminal blocks to replace connectors. The second issue is that the profits of enterprises are squeezed by purchasers and suppliers. The purchasers 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. The main suppliers of pin and female connectors are raw material suppliers such as aluminum, copper, silver, gold, and engineering plastics, with high industry concentration and standardization; The buyer's transaction volume is very large; The degree of product differentiation is very small; The cost of converting sellers is relatively low; The possibility of forward integration is unlikely; Both parties' information is quite transparent; Overall, the bargaining power of the seller is relatively low, which results in a small profit margin for the enterprise.
Although the overall market is currently facing certain threats, Wang Jianbo believes that opportunities are greater than threats. At present, Jinling Electronics (JILN) mainly produces products such as needles, busbars, round holes, European sockets, and Jianniu. The company was established in Shenzhen in 2004 and has continuously adjusted its product positioning and market positioning according to market demand over the past decade of development. Through in-depth investigation and analysis, the market positioning and market strategy expansion strategy of the needle and mother production line are formed, and the segmented market where the needle and mother production line is located is determined. The overall demand, market capacity, and prospects of the Chinese needle and mother production line market are judged, and the target market is identified. The users, uses, product characteristics, prices, user needs, and preferences of the target market are clearly analyzed and matched with corresponding marketing strategies. During this process, the company continues to grow and expand.
In recent years, due to the rapid development of upstream industries such as pin headers, headers, and connectors, the 3C industry including computers, communication products, and consumer electronics, as well as data transmission business, have great potential for development in China. Another major development direction of connectors is LED display connectors. Currently, the LED display industry in China is developing rapidly, and the demand for connectors is also correspondingly strong. However, as a new field, Chinese manufacturers still have significant shortcomings in terms of technical strength and production experience.
In the face of market and technological changes in pin headers, female headers, and connectors, Chinese manufacturers should gradually break away from homogeneous competition in the mid to low end product types, actively track cutting-edge technologies in pin headers, female headers, and connectors, learn new technologies and processes in connectors, continuously develop new products, and expand high-end product lines.
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