OEM means that the manufacturer of the brand does not directly produce products, but is responsible for the design and development of new products, controls sales channels, and entrusts other manufacturers of similar products to perform specific processing through contract orders. Task.

Clothing labeling means that the brand or trademark of the clothing belongs to another person. After the other party authorizes it, it only helps it to process and produce, but the trademark owner and other rights and interests still belong to the other party. OEM production is very common in our country, especially in the clothing, shoes and hats and other industries and the clothing industry is the most typical.

OEM can reduce investment in fixed assets such as brand factories and equipment; you can have your own products without much capital; you can focus on design, R&D, and sales to avoid wasting time; you can give full play to your own advantages and By handing over production-related technologies and work to professional companies, product quality can be improved. quantity and shorten the production cycle.

Extended information:

OEM is a parasitic phenomenon that has existed since the concept of private label was born. It originated in developed countries. First of all, large companies with independent brands and market advantages seek partners to jointly produce, thereby reducing production costs and improving the game rules for brand value-added.

In view of this, some brand companies have slowly extended their sights and tentacles to backward areas in developing countries, especially backward areas centered on manufacturing.

With their market advantages, they have obtained the huge resources needed in the processing field, and are actively looking for agents and OEMs, so that they are only responsible for processing products, affixing them after completion, and selling themselves under their own trademarks. trademark to expand their brand influence.

Those who voluntarily produce OEMs are usually unknown manufacturers and enterprises. They are restricted by insufficient technology and funds and cannot conduct independent research and development. There is no place to gain market share in the market and they can only Only by lowering your value and ordering from brand-name companies can you survive, and "make wedding dresses for others" clothes for people to produce.

At the same time, with limited orders, they compete head-on and bloody at the expense of their respective profits and prices, resulting in competition among original equipment manufacturers.

Encyclopedia-OEM