OEM and ODM generally exist in the procurement industry, but we found that many buyers and even some foreign sourcing agents do not understand the meaning of “OEM & ODM ” in the mouths of Chinese suppliers.
OEM and ODM are a concept you must understand when purchasing from China. Ego-fun provide original equipment manufacturing (OEM) and original design manufacturing (ODM) products.
What is ODM China?
An ODM company or firm is responsible for designing and building a product as other company’s specifications.
Since the product is developed from 0, ODM needs to invest a lot of money.
And if the product cannot be sold well after development, the loss will be even greater. All efforts will be in vain.
But the product is designed and developed you, everything is control by yourself and you hold the copy right of the product.
What is OEM China?
An OEM company is responsible for designing and building a product according to their own specifications, and then selling the product to another company or firm, which is responsible for its distribution.
The advantage is that buyers can use their own brands and channels to open markets that are difficult or impossible for original production designers to enter.
The disadvantage is that besides the appearance and some localization settings, the functions, key parameters and even shortcomings of the original product cannot be changed.
The most important thing is that this product may be sold by many sellers, and the market competition will be very fierce.
What is the difference between OEM ODM and OBM?
ODM stands for Original Design Manufacturing, and OEM refers to Original Equipment Manufacturing.
Both OEM and ODM are cooperation models between buyers and manufacturers in product design and manufacturing.
The main difference between the two is:
1. Different ways of cooperation
The OEM cooperation method is that manufacturers use their key core technologies to design and develop new products and control sales channels.
Buyers can make some modifications on the product, such as custom LOGO, color, material, etc.
The ODM cooperation method is as follows:
Buyers provide product ideas and entrust manufacturers to provide all services from research and development, design to production, and post-maintenance.
2. Different copyright ownership
The external trademarks and names of OEM products belong to the brand. The design property rights belong to the commissioned manufacturer.
ODM products are actually produced by the manufacturer in accordance with the buyer’s requirements and released under the brand’s trademark and name. Technical property rights such as design belong to the brand.