Introduction to OEM

1, what is OEM?

OEM is also called OEM. OEM is the abbreviation of English Original Equipment Manufacturer. According to the literal meaning, it is translated into the original equipment manufacturer. OEM refers to a manufacturer who produces products and accessories for another manufacturer according to the requirements of another manufacturer. OEM is also called OEM or authorized OEM. Specifically, the products of this enterprise have market channels, but the production capacity is limited, even the production lines and factories are not available. In order to increase output and sales, or to reduce the risk of new production lines, or to win market time, other similar products manufacturers are entrusted to produce by contract order, and the products ordered are low. OEM is a cooperative way of entrusting others to produce goods, which is to buy out the price and affix its own brand trademark directly.


2, is it troublesome to do OEM operation?

For the entrusted manufacturer, as long as it designs and produces according to the entrusted manufacturer, or modifies the existing products slightly or does not make any changes, only changes the trademark and reprints the packing box, it will be successful and complete the export or domestic sales operation.


3, where are the advantages of OEM OEM?

Because there is no need to worry about marketing, energy can be focused on production, so entrusted enterprises can create economic benefits through the advantages of mass production and small profits and more sales. In this way, one party only needs to pay the cost of materials and processing fees, not to bear the burden of depreciation of fixed assets and self-built factories, and can place orders flexibly on demand at any time according to market changes. OEM is a cooperation based on division of labor. It can make the similar enterprises complement each other, and effectively utilize the existing capacity. OEM is of great significance to entrusted enterprises. Expanding their own industry with their own funds will not only face the problem of relatively insufficient funds, but also increase the market risk of developing new products and affect the speed of new products entering the market. The adoption of OEM can effectively avoid these problems. It can rebuild its own brand, invite investment in the whole country and sell in the whole country just like manufacturers, without regional restrictions like agents. Packaging boxes can also be designed according to your requirements and willingness to meet the needs of the market, and all the contents on the boxes are your own.