From The Blog
Author：Danny / time：2019-07-05 / The number of clicks：889
The connector manufacturing process can be divided into upstream, midstream, and downstream. Upstream refers to the production and preparation of connector materials. Midstream refers to the production and design processes of the connector. Downstream refers to the sale of connectors. These three stages are dependent on each other. The upstream price determines the production cost of the midstream while the midstream production cost directly affects sales. On the other hand, sales influences production quantities, which in turn impact midstream production. If we look at recent connector production status, understanding and predicting the production situation and developmental trends of connectors will be hugely beneficial for both manufacturers and distributors.
In recent years, the need for connector manufacturers has continued to increase. The darkness over the connector market has been swept away. To respond to downstream demands of the application market, domestic connector companies must adjust the developmental path of their products. Many companies with vision have been fighting to become a supplier of international corporations. At first, they would develop new connectors together as their main business venture, then they would compete against each other to become a component supplier for large corporations. This is the normal plan which is also the most practical and stable for a connector manufacturer.
However, we must admit that the market is currently showing a dominance of large suppliers. Large connector manufacturers have an easier time with development due to their rich resources and substantial market share. On the other hand, consumers trust these established brands so they possess a stable client base. These are things smaller startups only wish for. However, smaller companies remain hopeful because in the market for smaller companies, they can still earn client resources through their expertise, i.e., having a good service attitude, versatile delivery dates, and other advantages. They are still able to provide OEM work and enter branded supply chains as long as the company chooses the right market and breaks through specific markets. Currently, the connector industry still consists of small to medium-sized businesses, so it is still fair competition. Connector companies can use joint purchasing, strategic alliances, and other methods to maximize resources and increase each other’s competitiveness; thus, creating win-win situations wherein every side can benefit.
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