OEM is characterized by: technology outside, capital outside, outside the market, only production within.
Nouns Explained 1: OEM is Original Equipment Manufacture (Original Equipment Manufacturer) abbreviation, it refers to a "OEM" mode of production, which means that the producer does not directly produce the product, but the use of their own mastery of the "key core technology", responsible for the design and development, control of the sales "channel", the specific processing tasks The specific processing tasks are handed over to other enterprises to do the way. This way is in the electronics industry after a large number of development in the world gradually generated a common phenomenon, Microsoft, IBM and other major international enterprises are used in this way.
Nouns Explained 2: OEM is an abbreviation of the English Original Equipment Manufacturer, in accordance with the literal meaning of the word, should be translated into Original Equipment Manufacturer, refers to a manufacturer in accordance with the requirements of the other manufacturer, for the production of products and product accessories, also known as the production of customized production or authorization of the production of labeling. That is, on behalf of outsourced processing, but also on behalf of subcontract processing. Domestic customary called collaborative production, three to processing
OEM can bring you what
OEM customers means the market, OEM customers, the more your product market share is higher.
Some experts believe that OEM is the product of the global economic integration of the industrial division of labor is becoming more and more refined. It can be for enterprises to increase its resources in the allocation of innovative capacity, as far as possible to reduce the investment in fixed assets.
Currently in China, when a manufacturer to extend their own brand, in front of the road there are three: either to engage in their own; either merge some of the relevant enterprises; or output management, output brand, do customized production, for the so-called "virtual business". In practice, most enterprises tend to use the third approach.
Enterprises in the mastery of the product core technology and the establishment of a mature marketing network, can no longer invest directly in production, but by letting other enterprises to produce on behalf of the way to complete the production of its products. In this way, only need to pay the cost of materials and processing fees, without having to bear the depreciation of equipment, self-built factories and production management risks, but also at any time according to the market changes in the flexibility of on-demand orders. This can promote the finished product business to form a new business advantage, cultivate and grow the enterprise's internal expansion, improve the management ability and management level, so as to move to a higher level of capital operation
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