What's the difference between OEM and ODM?

by:XJ BEAUTY     2020-06-16
You know cosmetics OEM? What's the difference between OEM and ODM? Line face small make up was from the technical content, profit distribution, development prospect of these three aspects to illustrate the ODM. ODM, namely 'original design manufacturer', refers to a manufacturer to design a product, in some cases may be some other enterprises, with the brand name for production, or modify a little bit about the design to production. This allows other firms to reduce their development time. Undertake design and manufacture of manufacturers, known as ODM cosmetics manufacturer of the business, its production of products is the ODM products. processing and OEM, ODM is in the production process a new branded has its own technology. Enterprise of the techniques used in the production process is with some or all of the intellectual property rights of its own technology, using its own technology to produce a product as long as on the product performance to achieve the foreign standards, can be 'branded'. We call this way of OEM referred to as the 'new'. Although this new stick a card is a form of contract manufacturing or processing, but compared to OEM, there is essential difference between, mainly displays in three aspects: 1. Technology content is different. Traditional OEM use basic it is foreign technology, almost no its own technology, and new OEM has at least partially had its own technology. 2. Profit distribution patterns are different. Traditional OEM just rely on cheap labor to earn low process cost, and 'new branded' because in its own technology and changed the way profit split and proportion, earning margins contained in the value of science and technology. 3. The future prospects for development are different. Traditional OEM is a learning process, and its prospects for development depends largely on the enterprise can obtain effective technical accumulation, through the learning process and timely transformation of the mode of production and timely 'upgrade' technical level; 'New branded' has entered the stage of the technological innovation, the next stage of its development will be to create their own brands. Brand output: is based on the original OEM/ODM to adapt to the new market competition environment on the basis of a new and effective mode, provide enterprises with embodies the cosmetics manufacturer brand registration, market research, brand, product research and development, production, packaging, design, supply chain management, marketing, marketing management, and enterprise operation management services, including a complete set of operation system, also can be summarized as the output of the brand 'core competencies'
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