What do OEM and ODM models mean

First of all, the two modes of OEM and ODM are simply the two different cooperation modes between the brand and the third party, that is, the difference between OEM and OEM.

The biggest differences are:

1. Different ways of cooperation. OEM (Original Equipment Manufacture), literally translated as “Original Equipment Manufacturer”. OEM is the design and development of new products and control of sales channels by brand producers using the key core technology they have mastered. The entrusted manufacturer only manufactures in accordance with the technical information and requirements of the brand. ODM (Original Design Manufacturer), literally translated as “Original Design Manufacturer”. ODM means that a manufacturer designs and produces products according to another manufacturer’s specifications and requirements, and requires the latter’s brand name to be sold. Among them, manufacturers that undertake design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.

  1. The copyright ownership is different. OEM products are actually produced by processing companies other than the brand party in accordance with the requirements of the brand party and released under the brand’s trademark and name. Technical property rights such as design belong to the brand. For ODM products, in addition to the external trademark and name belonging to the brand, the design property rights belong to the entrusted manufacturer. In layman’s terms, OEM can be called: OEM or OEM, using other people’s technology and brand, the factory is only responsible for production. ODM can be called: OEM, that is, factory products, affixed to other people’s brands.

For example, the cooperative relationship between Foxconn and Apple (APPLE) is a typical OEM model. Apple is responsible for the design and development of electronic products such as mobile phones and tablets. Then provide the circuit drawings, shell mold drawings and software and other materials, and Foxconn will be responsible for proofing. The sample will be returned to Apple to check whether it meets the design expectations. If it meets the requirements, Foxconn will carry out mass production. In the final product sales, Apple determines the specific time to market, sales price and sales area.

In addition to the above two production modes, there is another production mode that is self-developed, self-produced and self-sold, that is, mastering the production mode of the entire industry chain. Taking my company as an example, BOD adopts this self-developed, self-produced and self-sold production model. The main advantages of this production model that masters the entire upstream and downstream industrial chain are: stable supply, stable quality control, independent pricing, high gross profit margin, independent intellectual property rights and core patents, and at the same time, it is conducive to independent enterprise planning.

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