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Home > Technical Support > OEM/ODM OEM/ODM

Glossary 1: OEM is Original Equipment Manufacture ( OEM ) acronym, which refers to a " foundry " approach, in the sense that producers do not directly produce products, but use their control of the " critical core technology ", responsible for the design and development, control of sales " channel " , the specific processing tasks to the way other companies do . This approach was developed in the electronics industry only after a large number of worldwide gradually generated a universal phenomenon, Microsoft , IBM and other major international companies have adopted this approach.

Glossary 2: OEM Original Equipment Manufacturer is the English abbreviation , literally , should be translated , said the original equipment manufacturer , means a manufacturer according to another vendor 's requirements for the production of products and product parts, also known as OEM or authorized OEM. appoint representatives to processing, but also on behalf of subcontract machining . domestic habits called collaborative production , three to process
OEM can bring you what
OEM customers means that the market , OEM customers , the more your product 's market share is higher.
Some experts believe , OEM industrial division of global economic integration is increasingly refined product of it for the companies to increase their own resources in innovative aspects of the configuration , to minimize investment in fixed assets .
In China, when a manufacturer to extend their brand when the road is before it has three : either their practice ; or merge with some relevant companies ; either output management , output brands do OEM , so-called " virtual business . " in practice , most companies tend to adopt the third approach.
Enterprises in mastering core technology products and established a mature marketing network , you can not directly invest in production, but on behalf of other companies through to production methods to accomplish its task of production so that only pay for material cost and processing fees, without having to bear the equipment , self factories and production management risk , but also change at any time based on market demand and flexible orders , whereby the finished product can promote the formation of new businesses operating advantages , develop and strengthen the enterprise internal expansion force , improve operational capacity and management level, thus to a higher level of capital operation . example: Wuxi little Swan
Most of the small and medium manufacturing enterprises due to no capital market operation mechanism and financial support , the majority can not get a lot of money into marketing and advertising , resulting in the original good quality products in the market place is difficult , therefore, through OEM partners would allow small businesses to large enterprises with branding, marketing network and increase production and expand sales and gain greater economic benefits , and also through the introduction of well-known brands of the production process and improve their production management level. example: Skyworth Group , Galanz
Stand in this position, we can re-examine the OEM to the Chinese home appliance industry opportunities on the one hand , it can make existing domestic production lines and labor resources fully up and running , to meet the needs of enterprise short-term interests ; On the other hand , companies may through OEM, outwardly learning experience , learning technology, learning management, forging their own brand to gain time in order to support the long-term interests of the enterprise at the same time , domestic enterprises through the use of OEM , can accelerate the restructuring of brand resources the domestic appliance enterprises should make this mode of production through the OEM factory fully up and running , improve internal management , product quality, training workers, the quality of China's accession to WTO, the international home appliance enterprises will constitute a serious threat to domestic brands , although this transition period may be longer, domestic appliances business technology industry and trade integration of this business model will continue for some time , but this is an inevitable trend.

It is worth mentioning that, in the international market , there is an OEM model that strong competitors with strong opponents among OEM. Abroad, a well-known household electrical appliance enterprises can simultaneously dozen companies do OEM, the other party may be equally well-known household electrical appliance enterprises . one brand to another brand for yourself please brandable , must have been like to enter , but not fully grasp the field, while the other will necessarily have an advantage in the field of business, in fact, a brandable kind of speculative process. when such strong opponents OEM between the time you come to me , there is a common broaden the market , the bigger the market. such OEM is another realm. example : IBM to Dell provides OEM production Toshiba willing to do the second the first to leave little Swan

ODM is how it goes ? It turned out that a manufacturer to design a product, in some cases, may be some other brand manufacturers of fancy coupled with the latter's brand name required for production , or slightly modified some of the design ( such as key position ) to produce. The greatest advantage is that other manufacturers to reduce their development time . Some people habitually saying that these products are OEM, should actually be called ODM (Original Design Manufacturer, original design manufacturers ) . For example, some Japanese brand laptop is actually manufactured by the Taiwanese OEM manufacturers . Later, as long as the Taiwan notebook manufacturers to modify some design details or accessories will be able to own brand name for mass production. Because they are for these Japanese brands for the ODM and not OEM. Of course, we can say that they are from the same production line produced.