OEM, the original equipment manufacturer? The basic meaning of OEM is OEM cooperation, commonly known as "OEM". That is, brand manufacturers do not directly produce products, but use their own "key core technologies" to design and develop new products and control sales and sales "channels";
However, the production capacity is limited, and there are even no production lines and workshops. In order to increase output and sales, reduce the risk of entering new production lines, and even win market time, we entrust other manufacturers of similar products to produce through contract ordering, buy out the ordered products at low prices, and directly label our own brands and trademarks.
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Advantages of OEM
For well-known brand enterprises. This approach can be regarded as a strategy to maximize profits. The earliest OEM in the world came from the clothing industry. In order to reduce costs and improve product competitiveness, many famous clothing enterprises in developed countries gradually expand their production bases overseas, entrust local production and manufacture, and then sell them in their own names in the market.
Because it reduces the occupation of the production funds of the entrusted enterprises and reduces the risk of expanding the market. Compared with self-shop, merger, joint venture and merger, OEM has the least capital for brand enterprises. Improve the speed of new products of brand enterprises entering the market. "OEM" is a good choice to quickly occupy the market in the short term. It is a good choice to effectively reduce risks without losing the market.
Many world-class home appliance manufacturers have changed their business model from mass production to mass customization. Through OEM, we can not only quickly complete the global coverage of the brand, but also reduce the investment cost and risk.