Price competition in the connector industry is becoming increasingly fierce. When will the vicious low-price competition stop?

With the continuous improvement of social intelligence, society has become more dependent on the performance of electronic technology and electronic components. Mastering more advanced electronic technology can grasp the priority of development.

Although China has the most complete industrial chain in the world, it can achieve almost 100% self-sufficiency in the field of electronic components. But at present, the connectors produced in my country are mainly low-end and medium-end products, with relatively low technical thresholds and fierce price competition. There are generally the following 5 factors that affect the price of connectors:

1. Raw materials

The quality of the material directly affects the basic price of the product. Generally, the price of domestic raw materials will be lower than imported materials. At the same time, depending on the application of the connector, it may need to have requirements such as corrosion resistance, temperature difference resistance, and durability. The price of raw materials used to meet these special needs will be higher.

2. Process standard

In the connector production process, the production efficiency of the workers, the processing and testing machinery and equipment, etc. all require the manufacturer to invest a certain amount of cost. This part of the cost will be added to factors such as production efficiency, production technology, production difficulty, etc., and affect the final shipment price.

3. Quality standards

Quality is the foundation of a manufacturer's survival, and the cost of strict control standards is also relatively large. For example: professional quality inspection personnel, quality inspection equipment, the loss cost of defective products / scrapped products, etc.

4. Packing method

Different packaging methods of products also have cost differences. For example, common inner packaging methods: bag packaging, roll packaging, tray packaging, tube packaging, etc., are different in packaging materials and labor costs.

5. Supply channels

There will be a certain cost difference between the distribution of goods by agents, online stores and direct supply from factories. For example, each level of tiered agents will increase the corresponding cost. Direct supply from the factory is the lowest-cost procurement method.

Nowadays, the competition in my country's electronic connector industry is becoming increasingly fierce, and the market has formed a certain scale, but the high-end connector series with higher technology and higher profits are still occupied by overseas brands. Rather than using domestic connector manufacturers in the red sea of ​​consumer-grade connectors, the low-price war that hurts both sides, it is better to start with research and development, establish technical barriers, and shift from price competition to quality competition, so that the industry will move towards healthy development.