The basic meaning of OEM (Original Equipment Manufacture) is OEM production cooperation, commonly known as "OEM".

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 they do not even have production lines or factories. In order to increase In order to reduce the risk of launching new production lines and even gain market time, we entrust other manufacturers of similar products to produce them through contract ordering. The ordered products are bought out at a low price and directly affixed with our own brand trademark. This cooperation method of entrusting others to produce is called OEM. The manufacturer that undertakes this processing task is called an OEM manufacturer, and the products it produces are OEM products. Similar ODM (Original Design Manufacturer) original design manufacturer.

The characteristics of OEM are: technology is outside, capital is outside, the market is outside, only production is inside.

Term explanation 1: OEM is the abbreviation of Original Equipment Manufacture. It refers to a method of "Original Equipment Manufacturer", which means that the producer does not directly produce products, but uses The "key core technologies" that are mastered by oneself are responsible for the design, development and control of sales "channels", and the specific processing tasks are handed over to other companies. This method is a common phenomenon that gradually emerged around the world after the electronics industry developed in large quantities. Major international companies such as Microsoft and IBM all adopt this method.

Term explanation 2: OEM is the abbreviation of Original Equipment Manufacturer in English. According to the literal meaning, it should be translated as original equipment manufacturer. It refers to a manufacturer that produces products and product accessories for another manufacturer according to the requirements of another manufacturer. It is also called OEM production or authorized OEM production. It can represent outsourcing processing or subcontract processing. Domestic custom is called collaborative production, and Sanlai processing

OEM can bring you What

OEM customers mean the market. The more OEM customers there are, the higher the market share of your products.

Some experts believe that OEM is the industrial division of labor in global economic integration. Products that are increasingly refined. It can help enterprises increase the allocation of their resources in innovation capabilities and minimize investment in fixed assets.

Currently in China, when a manufacturer wants to extend When building its own brand, there are three paths before it: either start it yourself; or merge some related companies; or export management, export the brand, do customized production, and carry out so-called "virtual management". In actual operation, most of them Most companies tend to adopt the third approach.

After a company has mastered the core technology of the product and established a mature marketing network, it can no longer directly invest in production, but instead let other companies do the production for it. To complete the production tasks of its products. In this way, you only need to pay the material cost and processing fee, without having to bear the risks of equipment depreciation, self-built factories and production management. You can also flexibly place orders on demand according to market changes at any time. From this It can promote the formation of new operating advantages in the finished product business, cultivate and strengthen the internal expansion power of the enterprise, improve the operating capabilities and management level, and thus move towards a higher level of capital operation.

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