Perhaps you have also had this idea: Make your own product or brand. Some people just think about it, while some people take action but find that there are many difficulties ahead and they don’t know how to solve it. Today I will quote a relatively simple question on Zhihu to talk about what OEM is and some of the processes I have experienced on the road to OEM.

As the title says, there is no company, no trademark, and bottle stickers are printed and sold in small shops. Are there any legal risks? The answer is obvious: yes.

First of all, this kind of behavior is not considered OEM. Strictly speaking, it is unlicensed production. Not only will the products and illegal gains be confiscated, but also fines will be imposed.

Secondly, let’s talk about OEM. Let’s talk about the lowest-cost approach to this problem first. You don’t need to register a company. You can also be a self-employed business owner, but you need a business license and a circulation license, and then find an “enterprise with a food production license” to entrust processing. But there are trademark risks. The specific practices and processes of OEM are very complicated in the actual promotion process. Next, we will take a customer who has made a deal as an example to introduce the entire process from consultation to deal. If you have any questions, you can send a private message or leave a message. Detailed explanations on relevant aspects will be added in the future. .

1. Conditions required for OEM processing

First of all, a regular OEM processing company provides services to TOB (unless it is just pure processing), so It is aimed at enterprises or organizations with formal qualifications such as business licenses and circulation permits. If you do not have licenses and permits, you need to take care of yourself, but we can give corresponding guidance and suggestions. For customers, it is also necessary to review the qualifications of manufacturers, because there are too many "small workshops" now. If you want the quality of your products to be guaranteed, reviewing the qualifications is the first step. If possible, it is best to do it on the spot. inspection.

Secondly, there is consultation about OEM/processing products, including product types, product dosage forms, etc. This generally requires clear product requirements. For example, if you plan to make ginseng products, then the next step will be Explore what dosage forms can be made, including ginseng preserves, ginseng powder, ginseng peptides, ginseng drinks, ready-to-eat ginseng, ginseng wine, ginseng tea or ginseng granules, etc.

After both parties clarify the basic information about the product, they will enter a stage that many people have stepped on: packaging materials.

2. Customized audit of packaging materials

In terms of packaging, there are product packaging, inner packaging and outer packaging, including bottles, boxes, aluminum foil, etc., which involve specifications and sizes. They vary in size and material quality. Why is it easy to get into trouble? Because I have seen too many packaging materials scrapped, and too many products scrapped due to improper packaging materials. These are direct losses for the company.

Why is there such a loss? List two common reasons

1. The outer packaging is too small and the inner packaging cannot fit. This is because the size is not determined properly. There may be many reasons for this. The common ones are inner packaging and outer packaging. If they are not made by the same manufacturer, and there is a deviation between the reported size and the actual finished product size, then this batch of packaging materials will be completely scrapped. It's like when you go shopping for shoes, sometimes you buy a size 39, which is just right, and sometimes you can buy a size 38. The size of your feet has not changed, but the size has changed due to different styles of shoes.

2. The product uses inappropriate packaging materials. For example, if probiotics are sold in the South, the issue of humidity must be considered. If the moisture permeability and material issues of the packaging materials are not taken into account, then one or two Months later, this batch of products will also be completely scrapped due to agglomeration.

When it comes to packaging materials, our approach is: service. First of all, because OEM processing is only for product production and does not have the ability to produce packaging materials, the service is "three-party docking". Through the cases we have served and our understanding of packaging material suppliers, we provide packaging material suggestions to corporate customers. , confirm step by step: what product → what packaging material to use → what are the dimensions of the packaging material → finalization → review of printed design documents → plate making.

This is the end of the packaging material link. The prices of the packaging materials in the middle are all transparent, no price difference is made, and the service is free.

3. Preparation of formulas on demand

When it comes to products, we must talk about formulas. The formulas can be those of corporate customers, or they can be developed according to their needs or fine-tuned within reasonable and legal limits. .

I won’t go into details here, but it is worth mentioning that we have cooperative laboratories and pilot workshops in technology research and development, which are the so-called R&D teams and small batch production capabilities. (To put it bluntly, there are channels for R&D and production of products for small orders. If you want to try entrepreneurship, you know)

4. Pre-production sample confirmation

Someone once jokingly said that the product Like a precious son of mine, I have spent a lot of effort on it, hoping that it will live well... After all, if it is good, so am I...

It is estimated that I have spent at least half of the time to complete the above steps. After months, I finally waited to see what my "baby son" looked like. If there was no problem, it would be his.

5. Confirmation of the contract terms between both parties

The two parties further confirmed the contract terms and finally signed the contract. After all, we are both reasonable and legal formal (business) enterprises.

6. Pay advance payment to purchase raw materials/prepare production

The customer pays the advance payment and starts purchasing according to the type, quality, and quantity of raw materials agreed in the contract, and enters production preparation.

7. Production/Loss/Coordinated Delivery

After all raw materials and ingredients arrive at the factory, actual production begins. When the final order is completed, two issues will be involved:

1. Loss: No one can determine how many raw materials can produce how many products. It can only be a rough estimate, and the settlement will be based on the final number of products actually produced.

2. Cooperate with delivery: the customer comes to pick it up or the customer specifies the logistics, and the manufacturer cooperates to ship the goods. This is the last step of the entire order process.

There may be some things here that are not detailed, but in these years of working in the OEM industry, we have experienced success and experienced many problems. Let us write down our hard-earned experience. I just want to express one core point: We are a group of professional people who are dedicated to doing this and serve every customer well. Helping customers reduce operating costs, operating risks, and increase income is the core issue that TOB companies need to solve.

Finally, here is a question on Zhihu: Most people say that OEM and OEM are the same thing. What is the difference between OEM and OEM?

Answer: OEM is not necessarily OEM, but OEM must be OEM.

You taste it, you taste it carefully. I can't taste myself.