OEM is the original equipment manufacturer (OEM), which refers to a kind of "OEM production". It means that producers do not directly produce products. They use the "key core technologies" they have mastered to design and develop and control the sales channels, and the specific processing tasks are done by other companies. This method is a common phenomenon in the world after the rapid development of electronic industry, and it has been adopted by big international enterprises such as Microsoft and IBM.
OEM is the abbreviation of original equipment manufacturer in English. Literally translated as original equipment manufacturer, it means that one manufacturer produces products and accessories for another manufacturer according to the requirements of another manufacturer. It is also called production or licensing. It can be handled on behalf of foreign committees or subcontracts. The domestic custom is called cooperative production, and the three processes
OEM customers refer to the market. The more OEM customers, the higher the market share of products.
some experts believe that OEM is the product of increasingly detailed industrial division of labor in global economic integration. Increase the allocation of enterprise's own resources to innovation ability, and reduce investment in fixed assets as much as possible.
In China, when a manufacturer wants to expand its brand, it has three choices: to produce or sell. Or buy some related companies. In practice, most enterprises tend to adopt the third method.
Reference: OEM- Baidu Encyclopedia.