What are OEM and ODM? What do you need to know when looking for mobile phone charger OEM manufacturers from China?
In the following article, I will tell you the differences and benefits of OEM and ODM. How to find a reliable manufacturer of OEM/ODM mobile phone accessories.
What‘s OEM?
OEM stands for original equipment manufacturer.
In most cases, original equipment manufacturers buy parts from other manufacturers or suppliers and use them to assemble finished products. Original equipment manufacturers also produce parts and subassemblies, which are resold to other companies, which assemble them into their own finished products.
Brand producers do not directly produce products, but use their “key core technology” to be responsible for designing and developing new products, and controlling sales and sales “channels.”
Its production capacity is limited, and it does not even have a production line or workshop. In order to increase production and sales, to reduce the risk of launching a new production line, and even to win market time, it entrusts other similar product manufacturers to produce through contract orders, and the products are ordered at low prices. Buy out, and directly paste your own brand trademark.
This kind of cooperation method of entrusting others to produce is called OEM, and the manufacturer that undertakes this processing task is called OEM manufacturer, and the products it produces are OEM products.
What‘s ODM?
OEM stands for Original Design Manufacturer.
After a manufacturer designs a product, in some cases it may be favored by manufacturers of other brands, requiring the latter’s brand name to be used for production, or slightly modifying some designs (such as button positions) To produce. The biggest advantage of this is that other manufacturers reduce their own development time. Some people also habitually call these products OEM, but in fact they should be called ODM (Original Design Manufacturer)
Why look for OEM/ODM manufacturers in China?
1. China’s manufacturing powerhouse has strong production capacity and large manufacturing output, which is also one of the main driving forces of China’s economic growth. Mobile phone accessories such as chargers, data cables, and headsets are mainly produced by Chinese companies and exported to international companies in various countries, and the demand has been increasing.
2. Because China has always produced high-quality products at affordable prices, and the production of source materials has greatly improved Reduced production costs.
If you are considering sourcing products from China and need to develop your own brand, you must first find a suitable manufacturer that can produce products for you, and label your brand, or find a reliable Chinese manufacturer to produce your own If you want a product or design it for you, you may need to consider cooperating with OEM or ODM.
Well-known brand companies are generally willing to find other manufacturers OEM or ODM. When looking for other companies for OEM or ODM, well-known brand companies also have to bear a lot of responsibilities. After all, the product is of its own brand. If the quality of the product is not good, you will receive complaints from customers. Therefore, strict quality control, reliable OEM manufacturers and sufficient production capacity are very important.
OEM Benefits?
1. Contribute to the integration of brand resources
One of the factors in choosing OEM OEM processing is that the organic integration of brand resources can disperse the pressure on brand products, focus on doing what you are good at, and meet the division of labor and cooperation. Maybe some brand companies do not have strong production capacity. In order to ensure the quality of the products, some OEM OEM factories must be selected for product production in order to achieve the integrated utilization of resources.
2. It can reduce the production risk of the enterprise
Because the original corporate brand has a lot of work, the investment cost is relatively large, the profit margin is very low, and it is difficult to obtain easy profits. Therefore, in order to be able to develop the enterprise’s risk and reduce the cost, some oem OEM processing is selected to help produce the product. . There are manufacturers that specialize in research and development of products, which improves the efficiency of product production and saves energy and money. It can be said that the enterprise concentrates on the production and sales links to show the company’s capabilities..
3. In order to increase the benefits of the brand
According to different situations, brand owners entrust the production of products to a third party for production to lay a good foundation for their future development, make good use of the technological innovation advantages of OEM OEM processing, and reasonably look for manufacturers that can meet production standards. In order not to affect the subsequent quality problems of the product, the contract manufacturer must have sufficient advantages and complete supply to help achieve brand benefits.
How to choose an OEM phone accessories manufacturer in china?
1. Factory production equipment
2. Qualifications
3. Product development capabilities
4. Have strong control over the market direction
5. Supply Ability 6. Service attitude
The factory’s R&D capabilities, quality control management level, whether there is strict raw material supply chain management, the rigor of the production process, etc., are very important to ensure the stability of product quality. The simplest judgment is whether this factory has cooperation with some domestic and international brands. Because international brands have strict product supply chain management, they will inspect and inspect factories repeatedly before cooperation.
Finally, we must examine the soft power of the factory, such as filing services, testing services, design capabilities, delivery cycle, cost-effectiveness, warehousing capabilities, shipping capabilities, and whether the later production capacity can keep up. In short, choosing a good partner is very important. Choosing a good partner will be easy, allowing you to devote yourself to product sales, channel team building, and brand operation.
Simply, OEM means original equipment manufacturer, ODM means original design manufacturer.
When you fully understand the meaning of OEM and ODM, its benefits and the working methods of Chinese manufacturers, you will be able to find suitable OEM and ODM Chinese mobile phone accessories manufacturers for your business.
