OEM can reduce the investment in the brand's fixed assets such as factory buildings and equipment; You don't need a lot of money to own your own products; Focus on design, R&D and sales to avoid wasting time; We can give full play to our own advantages and hand over production-related technologies and work to professional enterprises, which can improve product quality and shorten production cycle.
Extended data:
OEM is a parasitic phenomenon, which has existed since the concept of private brand. It originated in developed countries. At first, it was a rule of the game for large enterprises with independent brands and market advantages to seek partners for joint production in order to reduce production costs and increase brand added value. In view of this, some brand enterprises slowly extend their horizons and tentacles to the backward areas of developing countries, especially those centered on manufacturing, in order to obtain the huge resources needed by processing places with market advantages, and actively seek agents-OEM processors, so that they can only be responsible for processing products, and then affix their own trademarks and sell them in their own names, thus expanding their brand influence.
And those who volunteer to do OEM work are generally unknown manufacturers and enterprises. Limited by the lack of technology and capital, they can't independently research and develop, and the market has no foothold, so they can't seize market share at all. So they had to lower their bodies and ask for orders from brand enterprises. In order to survive the order, they "married other girls" and produced for others. At the same time, in the case of limited orders, they are willing to sacrifice their own profits to reduce prices, leading to competition among OEMs.
Baidu encyclopedia -OEM