OEM goods refer to OEM factories. As a world factory, many factories in China are unknown to consumers, only OEM (original equipment manufacturer) and ODM (original design manufacturer).

Today, the large enterprises of these factories are paying more and more attention to the domestic market, and the sportswear factory among them is also preparing to enter the domestic market.

There are three reasons for this in the big environment:

1. The domestic sportswear and outdoor clothing market has started from scratch, which is a good opportunity for factories to enter;

2. The appreciation of RMB makes domestic enterprises less and less competitive in clothing export price;

3. Higher and higher domestic labor costs also make the export price of clothing uncompetitive (currently reflected in the shortage of migrant workers after the introduction of the policy of benefiting farmers and the strict requirements of the new labor law for business owners).

Extended data:

There are two ways for OEM factories to enter the domestic market: the first is to cultivate potential clothing brands or contact powerful domestic brands to process products for them; The second is to be your own clothing brand and directly face consumers. These two ways are also to seek a balance between short-term interests and long-term interests, mainly for long-term interests.

The first way is to do OEM for domestic brands. Of course, for factories, the orders of domestic potential clothing brands and powerful clothing brands may be far less than those of foreign countries. The director of a backpack factory said that the national sales volume of a well-known backpack in China is only half a month's output.

However, when the domestic market is prosperous in the future, the factory will grow with the brand, and foreign orders will decrease, hoping to make up for it from home. At the same time, if the factory wants to be its own brand, it can learn from the characteristics of domestic OEM brands. The mentality of the factory at this time is: carry down all the hardships of yesterday and exchange some happiness and happiness for tomorrow.

The second way to build your own brand is for the long-term benefit. The new brand means that consumers don't agree with it very much, the channels are immature and the sales ability is limited. Brand design, inventory, advertising, marketing, channels, sales and after-sales should be the responsibility of the factory itself, and if it can't be sold, it will be borne by itself.

Baidu encyclopedia -OEM factory