1. Threat of new entrants As an indispensable and important accessory in products and equipment, push-pull self-locking connectors account for more than 10% of the total procurement cost in many product application fields. And compared with other key components, push-pull self-locking link products have a wider selection range 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, while there are no special requirements in terms of sales channels, capital requirements, switching costs, cost advantages, etc. However, the vitality of the push-pull self-locking link market and its high growth potential in communications, railways, energy industry, machinery industry, etc. are attracting more and more new entrants.

2. Threat of substitutes

The main alternative to push-pull self-locking connectors are terminal blocks. In the mid-to-high-end market, push-pull self-locking connectors are not threatened by substitutes. This is mainly because the push-pull self-locking connector itself is developed from terminal blocks and is for convenient and fast error-free plugging and unplugging of cables. In the mid-to-low-end market, push-pull self-locking connectors are threatened by substitutes. When buyers are under cost pressure, they will choose average-quality, cheap terminal blocks.

3. Bargaining power of buyers

The buyer of push-pull self-locking linkers is a manufacturer of products and equipment. The concentration of buyers is high: the proportion of products purchased by buyers from this industry in its total cost is approximately 10%. The degree of standardization purchased by buyers from this industry is increasing: Buyers The profitability of enterprises has a tendency to decrease, the buyer has the ability to carry out backward integration, and the information of both parties is relatively transparent, so all of this makes the buyer's bargaining power higher and higher.

4. Bargaining power of suppliers. Suppliers of push-pull self-locking connectors are suppliers of aluminum, copper, silver, gold, etc.; suppliers of raw materials such as engineering plastics. The seller’s industry is highly concentrated and standardized, and the buyer’s transaction volume is very high. The degree of differentiation is very small, the cost of switching sellers is relatively small, forward integration is unlikely, the information of both parties is quite transparent, and the bargaining power of the seller is generally relatively low. can still maintain considerable profit margins.

5. The growth of push-pull self-locking link companies

The field of push-pull self-locking connectors is still mainly the stage of foreign companies. Domestic companies cannot compare with these multinational companies in terms of product technology level, application maturity, industry experience and service network. However, domestic companies are good at learning. . An important reason why we open the market is to learn from foreign advanced levels and gradually turn them into our own, developing more and more products, with a high starting point and less detours.