Due to the development of local industrial clusters, competition has also become larger and larger, and OEM/ODM/OBM has provided a development direction for many others. Maybe for some people, I don't know much about OEM/ODM/OBM. Today, GELAN Xiaobian tells everyone about OEM, ODM, and OBM.
OEM (Original Equipment Manufactuce). It is driven by the social division of labor and specialized interests. Its basic meaning is: the original unit (brand unit) entrusts the contract for product development and manufacturing, and uses the original unit trademark, the original unit sells or operates the cooperative operation mode of production. . OEM can be referred to as “OEM production” or “OEM production”. This business model has been operating internationally for many years. In order to increase the allocation of their own resources in terms of innovation capability, enterprises should reduce their investment in fixed assets as much as possible. Enterprises do not directly carry out production, and the production tasks of products are completed by letting other enterprises produce on their behalf. In this way, it is only necessary to pay the material cost and processing fee, without having to bear the burden of equipment depreciation and self-built factories, and can flexibly place orders on demand according to market changes. This will promote the formation of new business advantages in the finished product business, foster and expand the company's inherent expansion, improve operational capabilities and management levels, thereby creating conditions and accumulating experience for higher-level capital operations.
What is ODM?
ODM (Original Design Manufactuce). It can provide customers with all services from product development, design and manufacturing to post-maintenance. Customers only need to propose the function, performance and even the concept of the product to the ODM service provider. The ODM service provider can change the product from the idea. reality. Some manufacturers design products, they will be seen by other companies, require the company's own brand name to produce, sell, or make some small design changes for production, and sell under their own brand . The biggest benefit of doing this is that the latter reduces their own development time. It is customary to call the former the ODM of the latter.
What is OBM?
OBM (Orignal Brand Manufactuce). The foundry factory operates its own brand, or the manufacturer creates its own product brand, and produces and sells products with its own brand. Because the foundry does OBM with a sound marketing network to support, the cost of channel construction is very high, and the energy spent is much higher than that of OEM and ODM, and often conflicts with its own OEM and ODM customers. Usually to ensure the interests of large customers, the foundry rarely does a big deal to do OBM. There is a view that the acquisition of existing brands and the acquisition of brands by franchising can also be regarded as a part of OBM.
Zhejiang GeLan Electric Co., Ltd.