OEM is the mainstream mode of production in many industries, also known as OEM or authorized OEM, and it is the production that OEM manufacturers process under the entrustment of brands. The production mode of OEM has advantages and disadvantages;
1.Benefits of OEM
The advantages of OEM mainly lie in reducing costs, allowing enterprises to devote more energy to development channels and terminals, thus improving the competitiveness of products, reducing brand production funds and reducing the risk of market expansion; Compared with paving the way, merger, joint venture and merger, entrusting oem manufacturers to do OEM production not only saves money, but also has lower risk.
2, the disadvantages of OEM.
OEM also has some disadvantages, mainly because OEM companies usually produce products of multiple brands, which leads to serious product homogeneity in the market. Moreover, the OEM mode has a certain lag. If it is the original factory production, the technology of upstream manufacturers can be applied to the products quickly, and the upgrading is faster, but the OEM is not so fast. Another point is that there are few good OEMs and high requirements for customers. If you choose a poor OEM or change OEMs frequently, it will undoubtedly hit the brand's reputation.
Second, what are the requirements for OEM?
OEM is a common production mode, but the real OEM mode is very strict, which has certain requirements for both the client and the OEM. The basic conditions of oem include:
1, client
The entrusting party is required to have excellent technical output ability, excellent brand image, extensive market network, strong product development ability and technical control ability.
2. Equipment manufacturer
The manufacturer is the main engine factory, which requires the main engine factory to have surplus and excellent manufacturing capacity and sincere willingness to cooperate. In addition, the OEM is required to have strong control over the market direction.