Differences between OBM,ODM and OEM in processing field
OBM(Orignal Brand Manufactuce). That is, the foundries operate their own brands. Because the foundries need a perfect marketing network to support OBM, the cost of channel construction is very high, and the energy spent is far higher than that spent on OEM and ODM, and they often conflict with their own OEM and ODM customers. Usually, in order to ensure the interests of major customers, foundries rarely do OBM with great fanfare.
ODM(Original Design Manufactuce). It can provide customers with all services from product research and development, design and manufacture to post-maintenance. Customers only need to propose the function and performance of products to ODM service providers, and even only need to provide product ideas. ODM service providers can turn products from ideas into reality.
After some manufacturers design products, they will be liked by other enterprises, and they are required to match their own brand names to produce and sell, or make some minor design changes to produce and sell with their own brands. The biggest advantage of this is that the latter has reduced its own research and development time. Used to call the former ODM of the latter.
The basic meaning of OEM(Origin Entrusted Manufacture) is the production cooperation under fixed brand. That is, brand producers do not directly produce products, but use their own “key core technologies” to design and develop new products and control the “channels” of sales. However, their production capacity is limited, and even there are no production lines and factories. In order to increase the output and sales volume, reduce the risk of X new product production lines, and even win market time, they entrust other manufacturers of similar products to produce them through contract ordering, and buy out the ordered products at a low price and directly affix their own brand trademarks.
This cooperative mode of entrusting others to produce is OEM, and the manufacturer undertaking this processing task is called OEM, and the products it produces are OEM products. OEM is characterized by technology, capital, market and only production.
The biggest difference between OEM and ODM:
OEM products are tailor-made for brand manufacturers. After production, they can only use the brand name, and they can never be produced with the producer’s own name.
ODM depends on whether the brand enterprise has bought out the copyright of the product. If not, the manufacturer has the right to organize its own production as long as there is no design identification of the enterprise company.