OEM is called fixed-point production, commonly known as OEM (production). The basic meaning is that brand producers are not directly producing products, but are responsible for designing and developing new products and controlling sales channels by using key core technologies they have mastered.

OEM entrusts other manufacturers of similar products to produce the specific processing tasks through contract ordering, and then buys out the ordered products at low prices and directly labels their own brands and trademarks. This cooperative way of entrusting others to produce is called OEM for short. The manufacturer who undertakes the processing task is called OEM, and the products it produces are called OEM products. Fixed-point production belongs to the "OEM production" mode in processing trade, and it is the export of labor services with commodities as the carrier in international trade.

for both buyers and sellers, OEM mode enjoys the overall competitive advantage of products, and it also has one of the most distinctive advantages, that is, the flexibility for both buyers and sellers to enter and leave the market. As long as either party finds a more profitable way, it can terminate the contract at any time. From this perspective, the OEM market is highly efficient.