The component market has always been turbulent, and new requirements and technical changes are constantly put forward for various series of products, including pin headers, female headers, and connectors. So what kind of requirements and technical changes have the market put forward for pin headers, female headers, and connectors? The following Dosin hardware and electronic engineers will come to popularize this knowledge.
At present, the entire pin header, female header and connector market is mainly faced with two aspects of competition, as follows:
The first is the threat of substitutes. Based on the current situation, the products with many substitute connectors are mainly terminal blocks. In the mid-to-high-end market, the threat is not very obvious, but in the mid-to-low-end market In the face of fierce competition, when buyers face cost pressure, they often replace connectors with relatively low-priced terminals.
The second is that the profits of enterprises are squeezed by buyers and suppliers. The buyers of connectors are mainly manufacturers of products and equipment. Their market concentration is high, the degree of standardization is high, and their profitability is in the current market economic environment. The profitability is declining, so in the procurement process, the current information is more transparent and the price is constantly lowered. The main suppliers of manufacturers of pin headers and female headers are aluminum, copper, silver, gold and engineering plastics. and other raw material suppliers, the industry concentration and standardization are relatively high.
To sum up, the buyer's transaction volume is very large; the degree of product differentiation is small; the cost of switching sellers is relatively small; the possibility of forward integration is not large; the information of both parties is quite transparent; The strength is relatively low, which results in a small profit margin for the enterprise.