1. What does oem mean

1. OEM (Original Equipment Manufacturer) means "original equipment manufacturer" in Chinese, and its basic meaning is OEM. OEM products are tailor-made for brand manufacturers. After production, they can only use the brand name, and they can never be produced with the producer's own name.

2. OEM products are characterized by technology, capital, market and only production. Therefore, OEM products may not be the same quality as the original products.

3. OEM (original equipment manufacturer) refers to the manufacturer's production according to the requirements and authorization of the sample manufacturer and the specific conditions of the manufacturer. All design drawings are manufactured and processed in full accordance with the design of the sample manufacturer.

4. OEM production, also known as fixed-point production, commonly known as OEM (production), basically means 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.

5. Original equipment manufacturers entrust other manufacturers of similar products to produce specific processing tasks through contract ordering. After that, the ordered products will be bought out at a low price and directly labeled with their own brand 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. It can be seen that 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.

2. Specific instructions for OEM

1. OEM is the abbreviation of English Original Equipment Manufacturer, which literally should be translated into original equipment manufacturer. It means that one manufacturer produces products and product accessories for another manufacturer according to its requirements, also known as OEM or authorized OEM. It can represent outsourcing processing or subcontracting processing. Domestic customs are called cooperative production and three-way processing, commonly known as processing trade. First popular in developed countries such as Europe and America, it is a game rule for international companies to find their comparative advantages, which can reduce production costs and increase brand added value. This mode of production is quite popular in the domestic household appliance industry, such as TCL's licensing of washing machines in Suzhou Samsung and Changhong's licensing of washing machines in Ningbo Disheng.

2. specifically, OEM (original equipment manufacturer) means original equipment manufacturer, ODM(Original Design Manufacturer) means original design manufacturer, and OBM(Original Brand Manufacturer) means original brand manufacturer. Party A takes a fancy to the production capacity of Party B, and lets Party B produce the products designed by Party A, using Party A's trademark. For party b, this is called OEM；; Party A's technology and design are favored by Party B, and Party B introduces production and labels it as Party B.. For party a, this is called ODM；; A creates its own brand A, and B produces and sells products with brand A.. For a, it is called OBM.

3. ODM commissioned by the original factory is to meet the needs of buyers through efficient product development speed and competitive manufacturing efficiency in product design and development activities. After the technical ability is sufficient, the design ability will be improved, and then the case can be accepted and the related affairs of design and development can be handled.

4. Brand producers do not directly produce products, but use their own "key core technologies" to design and develop new products and control the "channels" of sales. However, the production capacity is limited, and even there are no production lines and factories. In order to increase production and sales, to reduce the risk of entering a new production line, and even to win market time, they entrust other similar product manufacturers to produce by contract ordering, and the ordered products are bought out at low prices and directly labeled with their own.

3. Advantages of OEM development

1. Adapting to the development of science and technology

The rapid development of science and technology has shortened the product life cycle. The competitive strategy of enterprises is changing from a production mode focusing on expanding production scale and reducing production costs to a market operation mode focusing on the application of new technologies and rapidly introducing new products. According to IDG data, in the 195s and 196s, the average life cycle of electronic products was 1-12 years, but in the 199s, it dropped to 6-18 months.

2. Brand development

The economic competition is increasingly spread around the world, and brands and channels are increasingly playing an important role in the final value of actual goods. The annotation of the original manufacturer's bid in OEM mode just shows the importance of this point.

3. development of information management

with the development of science and technology, computer integrated production system (CIMS) has been widely used in the production process, and quality has gradually become a controllable factor in the production process, which enables OEMs to provide material guarantee for products produced by consumers. This is one of the reasons why OEM is popular in the information industry with a high degree of production automation, and it is also one of the reasons why multinational enterprises such as IBM and HP, which only have more than 1 thousand employees, promote tens of billions of dollars in sales. Putting limited resources into channel construction also provides a fundamental guarantee for enterprises to improve market response speed.

4. Customer solutions

In the information economy era, the division of labor among industries is becoming more and more detailed, new products are emerging one after another, and the high-tech content is gradually improving. It is impossible for final consumers to judge their applicability based on the technological content of products, because what they need is all-round service based on solutions. In a sense, modern enterprise competition is to assess the ability of enterprises to find consumer needs and provide them with comprehensive solutions, and the importance of a single product is gradually decreasing. The real problem is how to meet the increasingly complex and personalized consumer demand.

5. Establishing competitive advantage

The development of modern economy has changed people's views on simple competition, and competition and cooperation have become the two major driving forces for the development of modern enterprises. In the products with their own advantages, using competitors' OEM products makes their advantages more prominent, and at the same time, competitors have new development space, and competition has become cooperation. At the same time, with the rapid development of science and technology, it is difficult for an enterprise to master all the patented technologies of a product at one time, and the integrity of intellectual property rights can be guaranteed by providing products to each other by OEM.