OEM, also known as OEM and OEM, was first popular in developed countries such as Europe and America. It is a game rule for large international companies to find their comparative advantages, which can reduce production costs and increase brand added value. In recent years, this mode of production is quite popular in the domestic household appliance industry, such as TCL's brand-name production of washing machines in Suzhou Samsung and Changhong's brand-name production of washing machines in Ningbo Disheng. Specifically, OEM (original equipment manufacturer) means original equipment manufacturer, ODM(Orignal Design Manufactuce) means original design manufacturer, and OBM(Orignal Brand Manufactuce) means original brand manufacturer. Party A takes a fancy to Party B's products, lets Party B produce them and uses Party A's trademark. For Party A, this is called OEM；. Party A brings its own technology and design for Party B to process, which is called ODM；; For Party B, it is only responsible for producing and processing other people's products and then affixing other people's trademarks. This is called OBM. OEM production, that is, OEM production, also known as fixed-point production, commonly known as OEM, basically means that brand producers do not directly produce products, but use their own key core technologies to design and develop new products and control sales channels. The specific processing tasks are entrusted to other manufacturers of similar products 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. Our company processes and produces toys by OEM. For example, some trading companies receive some orders from abroad to produce toys or develop new toys. This trading company does not have a complete set of equipment to produce toys, so it will find a manufacturer like us to process and produce toys. We are entrusted by the trading company to produce toys on behalf of each other according to each other's samples or design drawings, and use each other's resources to complete the project orders, so that we can achieve a win-win situation. Challenges faced by OEM enterprises As a part of social division of labor and an important link in the whole product chain, the realization of product profits cannot be separated from production. Theoretically, social division of labor is a mechanism in which all entities in the industrial chain cooperate with each other to achieve "* * *". However, due to the overcapacity in China's daily chemical industry, the supply and demand of daily chemical products are unbalanced, and the supply exceeds the demand. In reality, there is a buyer's market, and the product brand owners occupy an advantageous position in the product chain by virtue of owning the market and having the recognition of consumers. On the contrary, local OEM enterprises, because of fierce peer competition and the lack of unique core competitiveness, are so-called "rare things are precious". In the case that the production capacity greatly exceeds the demand, OEM enterprises seem to be insignificant, squeezed by upstream and downstream enterprises in the industrial chain, and faced with the threat of shrinking profit margins and survival. Because of this, many enterprises have created their own product brands and tried to distinguish them from their competitors. With China's entry into WTO, the economic field will be further opened, and the OEM enterprises in daily chemical industry will also face good opportunities for their own development, but also great challenges. On the one hand, with the development of economy and the growth of population, the market demand for daily necessities will increase greatly, which provides the fundamental market demand for the development of OEM enterprises; At the same time, driven by multinational daily chemical enterprises to reduce costs and facilitate access to the China market, large retail owners and distributors with good sales networks have also used local OEM enterprises to produce related products, which provide a good opportunity for the development of OEM enterprises. On the other hand, as mentioned above, OEM enterprises in China's daily chemical industry have the shortcomings of small scale, low technical level and low level of specialized production, mainly focusing on the processing of incoming materials and relying too much on the advantage of low labor cost. At the same time, many new market entrants, including large multinational OEM enterprises, have intensified market competition, which has caused great challenges to OEM enterprises. We can't help but think about how to seize opportunities and meet challenges for many OEM enterprises in the local daily chemical industry. I hope this explanation will help you. Introduction OEM is the abbreviation of English Original Equipment Manufacturer. Literally, it should be translated as original equipment manufacturer, which means that one manufacturer produces products and product accessories for another manufacturer according to its requirements. It is also called OEM or authorized OEM. It can represent outsourcing processing or subcontracting processing. Domestic customs are called cooperative production and three-way processing.