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Connector suppliers are moving toward Asia

Author:Danny / time:2018-08-21 / The number of clicks:371

Undoubtedly, the US subprime mortgage crisis has brought unprecedented challenges to the operations of major industries. The financial turmoil directly affected a series of problems such as the growth of raw materials in the market, the increase in labor costs, and the slowdown of the US economy. As for the global connector market, sales in the North American market has seen a downward trend. The sales in the North American market in 2007 was only 9.898 billion US dollars, a decrease of 2.5 percentage points from the 2006 figure of 10.151 billion US dollars. This did not only occur in the European and American markets; the huge waves of the financial turmoil have affected the global economic system. Europe and Japan, which rank among the best in terms of connector sales, are also facing the current market downturn. But the good news is that the global connector industry has maintained an average sales growth rate of 7.2% due to the strong pull of consumer electronics and communication technologies in Asia and Europe. The fastest growing market for the Chinese market has even achieved a double-digit growth, ranking first in the world with a growth rate of 16.8%. This allows connector suppliersto see the light in the future.

 

Due to unlimited connector choices in China and India, the world's top quality connector suppliers have shifted their strategic focus to the Chinese connector market. Well-known connector suppliers like Premier Electronics, Radiall, and HARTING Group in Germany have invariably established service teams in China to establish a stronghold in the China market. Chong of Premier Electronics said that the first priority of Premier's internationalization strategy is to start to develop their business in China first. They also passed the newly-established "Resource Trusted Suppliers" (RECS) certification in China. Radial's Hartmann said that more and more of the company's products are now being developed in China. They continue to enhance their R&D and manufacturing capabilities in China and give more and more autonomy to Chinese factories. Philip F. W., Senior Vice President of the Global Connectivity and Networking Division of HARTING Group in Germany, not only pointed out that the Chinese market is an important development direction of the company, but also believes that maintaining development with the rest of the world is also extremely important. In general, “entering the Asian market and promoting the internationalization strategy with local languages” has become a strategic approach that coincides with today's connector suppliers.

 

Of course, different connector suppliers have different characteristics in the Chinese market, which avoids direct competition from each other. Radiall's preferred engineering applications are WiMax, LTE applications, automotive information technology and medical industry development for mobile infrastructure, light civil aircraft, as they can provide composite connectors to meet new connector technologies to expand the combination of fiber optic connectors. The HARTING Group of Germany focuses on transportation and energy. They provide products such as D-Sub, ICPN, Han and DIN 41612 to meet the needs of high-speed railway and wind power generation.

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