OEM refers to the production of products and accessories by one manufacturer according to the requirements of another manufacturer. Also called OEM or authorized OEM. It can represent outsourcing or subcontracting. Commonly known as generation processing. Also known as OEM or ODM.
Specifically, OEM (original equipment manufacturer), ODM (original design manufacturer) and OBM (original brand manufacturer), also known as OEM and OEM, were first popular in developed countries such as Europe and America. It is the rules of the game for large international companies to find their respective comparative advantages, which can reduce production costs and increase brand added value.
OEM development history
OEM is the only way under the trend of socialized production and cooperation, and it is also one of the effective ways to rationalize resources. In Europe, as early as the 1960s, trade associations with OEM nature were established, and OEM production and trade accounted for more than 14% of the total industrial output value in Europe from 65438 to 0998.
With the further acceleration of economic globalization, OEM production has shifted to countries and regions with low processing and manufacturing costs. In Asia, Japan is the first country to adopt OEM, and the take-off of the four little dragons in Asia is closely related to OEM.