OEM factory refers to processing factory.

OEM processing, that is: original equipment manufacturer? The basic meaning of OEM (Original Equipment Manufacture) is OEM production cooperation, commonly known as "OEM". That is, brand producers do not directly produce products, but use the "key core technologies" they have mastered to design and develop new products, and control sales and sales "channels";

However, the production capacity is limited, and even There are no production lines or factories. In order to increase output and sales, reduce the risk of launching new production lines, and even gain market time, other similar product manufacturers are entrusted to produce through contract ordering. The ordered products are bought out at a low price and directly affixed. own brand trademark.

Extended information:

OEM advantages

For companies with well-known brands. This approach can be regarded as the pursuit of profit maximization strategy. The world's earliest OEM originated from the clothing industry. In order to reduce costs and improve the competitiveness of their products, many well-known clothing companies in developed countries have gradually expanded their product production bases overseas, entrusting local production and manufacturing, and then selling them in the market under their own names.

Because it reduces the occupation of production funds by entrusted enterprises, it reduces the risk of market expansion. Compared with setting up your own business, merging, joint ventures, and mergers, OEM commissioned processing takes up the least amount of funds for brand companies. Improve the speed at which brand companies enter the market with new products. "OEM" is a good choice to quickly occupy the market in the short term. It is a good choice to effectively reduce risks without losing the market.

Many world-class home appliance manufacturers have transformed their business models from mass production to mass customization. Through OEM, we can not only quickly complete the global coverage of our corporate brand, but also reduce investment costs and investment risks.