What does OEM mean? (what's the difference between OEM ODM OBM)

1. What is OEM?

OEM, the original equipment manufacturer, means that one manufacturer produces products and product accessories according to the requirements of another manufacturer, also known as OEM or OEM.

Its basic meaning is that brand producers do not directly produce products, but use their own key core technologies to design and develop new products and control sales channels. The manufacturer who undertakes the processing task is called OEM, and their products are called OEM products.

Simply put, the intellectual property of a product lies in the brand manufacturer, among which the manufacturer only plays the role of processing, manufacturing and production.

2. What is ODM?

ODM, the original design manufacturer, is a manufacturer who designs and produces products according to the specifications and requirements of another manufacturer. The entrusted party has the design ability and technical level, and produces products according to the authorized contract.

Usually, after a product is designed by a manufacturer, it may be favored by other enterprises in some cases, requiring to match the brand name of the latter for production, or slightly modifying the design for production. Among them, the manufacturers who undertake the design and manufacturing business are called ODM manufacturers, and their products are ODM products. The intellectual property of the product belongs to the manufacturer.

3. What is OBM?

The development direction of ODM is OBM, which is another concept, original brand manufacturer, original brand manufacturer. In other words, the foundry operates its own brand, or the manufacturer creates its own product brand to produce and sell products with its own brand.

Because OEM needs a perfect marketing network to support OBM, the cost of channel construction is very high, and the energy spent is much higher than that of OEM and ODM, and it often conflicts with its own OEM and ODM customers. Usually, in order to ensure the interests of big customers, foundries rarely do OBM in a big way.

In the actual production process, although the boundary between ODM and OEM is increasingly blurred, one thing will always be the watershed between them. ODM retains intellectual property rights and provides them to many customers. You can also launch your own brand products, which undoubtedly brings competitive threats to customers. Although OEMs sometimes retain possession of intellectual property when providing ODM services, they always try to avoid competition with customers. For example, OEMs generally promise not to launch their own brand products.

From the above introduction, we can roughly understand the meaning and relationship of OEM, ODM and even OBM. It can also be analyzed that the relationship between product quality and brand in the market is not so close, and it may be produced by OEM or ODM. This may also be a factor that causes the original manufacturing of products to become attractive to consumers.

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