1. Threat of new entrants   

Pin headers, headers , headers and headers, board-to-board connectors are important indispensable accessories in products and equipment, and they are purchased in many product applications The proportion has exceeded 8% of the total procurement cost. And compared with other key devices, connector products have a wider range of choices and greater local procurement space, so its industry entry barriers are not high. Entry barriers mainly exist in product differentiation advantages and economies of scale, but there are no special requirements in terms of sales channels, capital requirements, conversion costs, and cost advantages. However, the vitality of the connector market and the high growth potential of telecommunications in the railway, energy industry, and machinery industries are attracting more and more new entrants.   

2. Threat of alternatives   

The main replacement for connectors is terminal blocks. It is in the mid-to-high-end market that connectors are less threatened by alternatives. This is mainly because the connectors themselves have been developed from terminal blocks for the convenience and rapid error-free plugging of cables. In the low-end market, connectors are more threatened by alternatives. When buyers are pressured by costs, they will choose low-quality, low-quality terminals.   

3. Bargaining power of buyers   

The buyer of the connector is a product and equipment manufacturer, and the buyer's concentration is high: the product purchased by the buyer from this industry accounts for about 10% of its total cost; the standardization of the buyer's purchase from this industry is increasing: The profitability of buyers has a tendency to decrease; buyers have the ability to integrate backwards; the information of both parties is more transparent; so all this makes buyers' bargaining power increasingly high.