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 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.
This cooperative way of entrusting others to produce is OEM, and the manufacturer who undertakes this processing task is called OEM, and the products it produces are OEM products.
2.ODM (original design manufacturer) original design manufacturer.
The characteristics of OEM are: technology is outside, capital is outside, market is outside, and only production is included. ODM (original design manufacturer) means "original design manufacturer", which means that a company designs and produces a product according to the specifications of another company.
For example, a computer company, such as Hewlett-Packard, may make specific specifications for the laptops it wants to sell. They will define the product appearance requirements, such as screen size and technical requirements, input/output ports, keyboard forward tilt, computer bag shape and color, speaker position and so on.
They usually specify the main internal details of the product, such as the specifications of CPU or video controller. However, they do not design patterns, do not specify the types of switching transistors used in the power supply, and do not choose the frequency of the backlight converter. These are ODM's jobs.
ODM designs and produces notebook computers according to the specifications put forward by computer companies. Sometimes, ODM can also be produced according to existing samples. ODM often pays more attention to cooperation, but in the case of OEM, the buyer basically does not participate in the opinions on the specific specifications of the products.
Extended data:
First of all, the marriage between OEM and China manufacturing.
1. The manufacturing center was moved to China.
Any country must have at least one of two comparative advantages to become the world manufacturing center: technological advantage and cost advantage. There are two driving forces for international industrial transfer: one is market value orientation and market law; Second, the interests of national groups are concerned. Historically, the world manufacturing base has been transferred five times.
In 2002, due to economic reform, huge market and low labor costs, OEM became popular in China, and China surpassed the United States for the first time to become the country attracting the most foreign direct investment in the world.
2. Mandatory OEM
With the further acceleration of economic globalization, OEM demanders may choose OEM contractors in a wider range, especially to countries and regions with low labor costs. Many domestic enterprises, whether active or passive, will rely on OEM to survive. It is an indisputable fact that China is becoming a manufacturing base for some products.
Although the profits of OEM suppliers are relatively low, and most of the profits are taken away by brand enterprises, companies that make a living from manufacturing will definitely exist, and countries and regions that are good at manufacturing will definitely exist.
Facing the accelerated change of business environment, OEM is very popular in China. In Zhejiang alone, 90% of small household appliances in Ningbo are OEM, about 95% of clothes in Pinghu, 90% of lamps in Cixi and 80% of toys are OEM.
Products made in Zhejiang account for 50% of the global toy market, 70% of the lighter market and 50% of the tie market. Undoubtedly, OEM has brought excellent opportunities for the start and development of China's economy.
At present, China's manufacturing industry has formed a considerable scale, ranking fourth in the world. China has become a major home appliance manufacturing base in the world, and the output of many home appliances ranks among the top in the world.
Second, OBM.
OBM (original brand manufacturer) is a popular term in recent years. It means that manufacturers create their own product brands and produce and sell products under their own brands. Some people think that the acquisition of existing brands and the acquisition of brands through franchising can also be regarded as part of OBM.
Baidu encyclopedia -OEM
Baidu encyclopedia -ODM