OEM is a common phenomenon in China, which can be understood as the general trend of separation of production and marketing in the international division of labor environment. But relatively speaking, although the main engine factory can avoid many distractions in sales and concentrate on the production under orders, it can't share the brand value.
Extended data:
Advantages of OEM:
"In the eyes of most consumers, these luxury brands are produced overseas and have labels of origin. But in fact, many luxury brands have chosen to move their production plants to China. " Ouyang Kun, executive publisher of the Chinese version of Global Luxury Report, revealed that it is inevitable for China to make international luxury goods due to the pressure of cost and transportation.
According to Beijing Business Today, an authorized manufacturer of luxury goods, who asked not to be named or named, said that the production of luxury goods "moved to China mainly because of the low production cost in China".
The source said that as far as he knows, workers in overseas garment factories earn about $20 an hour and have fixed working hours; The wages of workers in China are very low, the labor cost is only 1/20 of that in Italy, and they can often work overtime. The cooperation with domestic authorized manufacturers also saves the huge investment in fixed assets that luxury goods manufacturers need when expanding the production scale of their products.
Baidu encyclopedia -OEM