Generally, the profit margin of OEM orders is basically very good, at 10%-20%. We are a woven garment factory with about 1 100 people, and we are facing the same problem at present. ODM is the abbreviation of OriginalDesignManufacturer, that is, original design manufacturer. Under normal circumstances, enterprises have independent research and development capabilities, even formed products, and have intellectual property rights for independently developed products. ODM enterprises will design and produce a product according to the specifications of other brands, and the product will be sold by the other party after being labeled with the brand of the brand. After designing a product, ODM enterprises may be favored by other brand manufacturers in some cases, requiring the latter's brand name for production, or slightly modifying some designs for production.

Because ODM enterprises have independent research and development of products and intellectual property rights, they can actively propose product design and production to brand manufacturers, which is more independent, and the profit rate is generally about 10% higher than that of OEM, and the profitability has been significantly improved. Compared with OEM, ODM has the core competence of design or development and the intellectual property rights of self-developed products. All aspects of products produced by ODM are owned by ODM factory. For example, ODM factory only produces molded products for brand A, excluding technology and design. Therefore, if other brands such as brand B take a fancy to the same mold product as brand A, ODM manufacturers can still produce the same product for brand B and mark it as brand B. Of course, if a product brand takes a fancy to a product mold of ODM, it can buy out all the technical design property rights of this mold at one time to ensure that the same mold product of another brand will not appear in the market.