If you have a trademark, you can find a manufacturer to produce and sell it yourself.
In order to reduce costs, shorten transportation distances, and seize the market, companies with advantageous brands entrust other companies to perform processing and production. It also provides product design parameters and technical equipment support to these manufacturing companies to meet the requirements for product quality, specifications and models, and produces products that are sold under the client's trademark.
OEM is a phenomenon that arises with the refinement of social division of labor. It actually represents the idea of ??division of labor and refined competition. Its biggest feature is that it realizes the separation of brand and production. This allows producers to focus more on production and brand owners to be freed from tedious production matters. And focus on technology, service and brand promotion.
Benefits of OEM production:
1. Reduce investment in fixed assets such as factories and equipment;
2. You don’t need a lot of capital to have your own products;
3. Concentrate on design, R&D, and sales to avoid wasting time;
4. You can give full play to your own advantages and hand over production-related technologies and work to professional companies , can improve product quality and shorten production cycle.
Reference for the above content? Baidu Encyclopedia-OEM