ODM Versus OEM
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Author : Lucy
Update time : 2021-06-25 14:57:37
What is the difference between odm and oem?
We are a China factory with 28 years rich experience in the production of rhinestone jewelry, women and girl jewelry ,social and wedding jewelry, party and dance jewelry and fashion jewelry. Our factory has got some certification from SEDEX and WCA, so we are a reliable and trusted odm oem jewelry manufacturers and partner china, which provides OEM and ODM jewelry service.
Today we would like to explain odm oem meaning and difference in order for everyone to know the difference between odm and oem more clearly.
Original Design Manufacturing
ODM stands for Original Design and Manufacturing and is also called "Private Label". This is when the buyers selects an existing product design from the manufacturer catalogue, update some minor changes and sells it under its own brand name. Possible changes include parts such as packaging or product size, color, and branding, as well as some limited adjustments to components or functions.
The advantage of ODM is that it eliminates the need for buyers to invest millions of dollars in research and development to create new products, because the factory provides many designs for buyers to choose from to reduce research and development costs. For example, for our jewelry, we will provide a large number of designs for buyers to choose according to market trends, market seasons, and seasonal changes. Then our customers will greatly reduce product development time and costs, and buyers can focus more on marketing strategies.
The disadvantage of ODM is that it is difficult to distinguish your product from competitors' products manufactured according to the same design. Although ODM requires less start-up capital, price competition is often more intense, resulting in smaller profit margins. For example, customers who want to buy ODM jewelry are more likely to choose based on price rather than quality. To truly distinguish your ODM products from other products on the market, while still maintaining a competitive price, it may require both factories and customers to require a lot of creativity.
Original Equipment Manufacturing
OEM stands for original equipment manufacturing, which refers to a product that is completely designed by a company and then licensed to a manufacturer. For example, the Apple iPhone was invented and designed by Apple and then licensed to Foxconn for production. Therefore, the iPhone enjoys a higher level of product differentiation because its design is only applicable to Apple and its authorized manufacturers.
The main advantage of OEM is that the designer retains full creative control over the design. ODM products are limited to predetermined designs, while OEM products can be manufactured according to any specifications. The only limitation is the designer's imagination (and budget).
The disadvantage of OEM manufacturing is that it requires more resources, which is more requirements for buyers. They need to have a very strong design team, and the company's finances to support designers in research and development within a few years to create unique products. Because of this, OEM designers must protect their designs as intellectual property, so as not to be copied and sold by another company at a lower price. For our OEM jewelry manufacturing services, we will sign confidentiality agreements with customers.
For ODM and OEM jewelry service, when importers, distributor, wholesalers, and chain stores who have or are seeking to develop their own business,ODM is currently the more common way. If you are a brand and Amazon store, then OEM is a better choice.
Anyway, we will provide different suggestions and services according to your different needs, welcome to inquiry! www.paradisefashionfactory.com
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