1、 What does OEM mean (OEM, labeling)

The full name of OEM is Original Equipment Manufacturer, which refers to the entrusted manufacturer producing according to specific conditions according to the requirements and authorization of the original factory. All design drawings are manufactured and processed completely according to the design of upstream manufacturers, which is simply OEM. At present, major brand hardware manufacturers have OEM manufacturers, which means that products are not produced by the original brand manufacturer, but are produced in cooperation with a certain processing factory. The products are labeled with their own product brand, and compared to selling products based on brand value, OEM products are generally found in low-end products of first tier brands.

OEM can also be understood as OEM and OEM, which have been popular in developed countries such as Europe and America. It is a game rule for international companies to find their own comparative advantages, which can reduce production costs and increase brand added value. In recent years, there has been a widespread outsourcing of computer hardware for major first tier and even second tier brands, with only the vast majority of mid to high-end products being kept confidential and produced by brand merchants themselves. However, most of the first tier brand manufacturers have strict quality control over their products, so the OEM manufacturers selected by first tier brands are mostly second or third tier manufacturers with certain strength. This does not necessarily mean that OEM OEM OEM products are poor, but can only be said to have some differences from the original products, so everyone is more enthusiastic about the original products.

ODM (Original Design Manufacturer), literally translated as "Original Design Manufacturer". ODM refers to a manufacturer designing and producing products based on the specifications and requirements of another manufacturer, and requiring them to be accompanied by the latter's brand name for sale. Among them, manufacturers who undertake design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.

2、 The OEM manufacturer's design solutions are supplied in a buyout or non buyout manner:

1. Buyout method: The brand owner buys out the design of a certain model of product from an ODM manufacturer, or the brand owner separately requests the ODM manufacturer to design product solutions for themselves.

2. Non buyout method: The brand owner does not buy out the design of a certain model of ODM manufacturer's product. ODM manufacturers can sell the design of the same model of product to other brands simultaneously without buying out. When these two or more brands share a design, the main difference between the two brands' products lies in their appearance.

3、 The difference between OEM and ODM

1. Different cooperation methods

When it comes to OEM, it's actually easy for experts to connect with ODM, which is another concept with many similar meanings. ODM (Original Design Manufacturer) is a product design and development activity that meets the needs of buyers through efficient product development speed and competitive manufacturing efficiency. If the technical ability is sufficient, the design ability can be improved, and then the ability to start accepting projects and handling design and development related affairs can be started. The most obvious difference between OEM and ODM is that OEM is manufactured by the original factory, while ODM is designed by the original factory. One is commissioned manufacturing, and the other is commissioned design, which is also the difference between the two.

In the industrial society, OEM and ODM are common practices. Due to considerations such as manufacturing costs, transportation convenience, and saving development time, well-known brand enterprises are generally willing to seek OEM or ODM from other manufacturers. When looking for other companies for OEM or ODM, well-known brand companies also have to bear a lot of responsibility. After all, the top brand of the product is one's own brand. If the quality of the product is poor, at least some customers may come to complain, and at worst, they may have to go to court. Therefore, brand enterprises will definitely implement strict quality control during the entrusted processing period. But after the OEM is completed, the quality cannot be guaranteed. Therefore, when some merchants tell you that the manufacturer of a product is an OEM or ODM product of a major brand, they must never believe that its quality is equivalent to that brand. What you can believe is that this manufacturer has a certain level of production capacity.

2. Copyright ownership varies.

OEM products are actually produced by processing enterprises outside of the brand according to the brand's requirements and published under the brand's trademark and name. The design and other technical property rights belong to the brand. And ODM's products, in addition to external trademarks and names belonging to the brand, belong to the design property of the commissioned manufacturer.

Generally speaking, OEM can be referred to as: OEM or OEM production, using someone else's technology and brand, and the factory is only responsible for production. ODM can be referred to as: OEM, which refers to the factory's products being branded by others.

4、 What are the advantages of OEM+ODM?

Currently, most small and medium-sized enterprises face technological backwardness, lack of funds, and insufficient production capacity. The development capacity of high-end technology products is still weak, making it difficult to develop branded products to participate in market competition.

With the increasing concentration of the consumer electronics industry and the deepening of industry division, companies with weaker technological strength and smaller scale choose to entrust product research and development to ODM service providers with more professional advantages for design, research and production. Collaborating with professional ODM service providers can help small and medium-sized enterprises shorten their product research and development cycles, improve product quality, reduce product costs, etc., which is beneficial for enterprises to seize market share and seek greater development space.

Establishing long-term stable and positive cooperative relationships with professional ODM service providers is beneficial for small and medium-sized enterprises to continuously innovate in their core brand competitiveness, adapt to the rapid changes in consumer demand, and maintain the brand's competitive advantage in the market.