The word OEM comes from OEM (original equipment manufacturer), which means original equipment manufacturer in English. In China, it is usually called OEM, OEM, commissioned production, commissioned processing, brand manufacturing and production outsourcing from different angles. Although the appellation is different, its essence refers to that enterprises with superior brands entrust other enterprises to process and produce in order to reduce costs, shorten transportation distance and seize the market. And provide these production enterprises with product design parameters and technical equipment support that meet the requirements of product quality, specifications and models, and the products produced are sold under the trademark of the entrusting party.

OEM is a phenomenon with the refinement of social division of labor, which actually represents an idea of division of labor and refinement of competition. Its characteristic lies in realizing the separation of brand and production, making producers more focused on production and liberating brand holders from tedious production affairs. And pay attention to technology, service and brand promotion. Therefore, the operation mechanism of OEM mode is a supply chain management production mode based on mass customization under a special principal-agent framework. The basic meaning is OEM, commonly known as "OEM". Specifically, the products of this enterprise have a market and sales channels, but the production capacity is limited. In order to increase the output and sales volume, reduce the risk of new production lines and win market time, we entrust other manufacturers of similar products to produce through contract ordering, buy out the ordered products at low prices and directly label our own brands and trademarks. This kind of cooperation mode of entrusting others to produce is OEM. Generally speaking, others provide brands, you produce them, and then post their brands to sell. For example, in the past, most electronics companies in Taiwan Province Province (ASUS started out like this) were OEM for European and American brands, such as IBM, Hewlett-Packard, etc., all of which were OEM in Taiwan Province Province, while China's clothing industry was OEM for world-renowned brands, so OEM cosmetics were L 'Oreal, Lancome and other cosmetics produced by China.