As a manufacturer, you may see two abbreviations used frequently when referring to potential business models. OEM and ODM, there's a lot of discussion right now around, and whether one is better than the other. This article aims to explain the differences and advantages between the two types of manufacturers. Choose different services according to your own needs.

The full name of OEM is Original Equipment Manufacturer, which can be understood as OEM production, which means that the products are not produced by the original brand manufacturer, but are produced in cooperation with a processing factory, and the products are branded with their own products. This can reduce production costs and increase brand added value.

ODM (Original Design Manufacturer) . ODM means that a manufacturer designs and produces products according to the specifications and requirements of another manufacturer, and requires them to be sold under the latter's brand name. Among them, manufacturers that undertake design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.

The main difference between OEM and ODM is the way of cooperation. When it comes to OEM, it is easy to think of ODM. The most obvious difference between OEM and ODM is that OEM is commissioned by the original factory to manufacture, while ODM is commissioned by the original factory to design. One is commissioned manufacturing and the other is commissioned design. This is also the biggest difference between the two. The biggest difference between the products produced by the two is that the product copyrights are different. OEM products are actually produced by processing companies other than the brand owner according to the brand owner's requirements and released under the brand owner'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 owner, the design property rights belong to the entrusted manufacturer.

Generally speaking, OEM using other people's technology and brand, the factory is only responsible for production. ODM, that is, the factory's products are branded by others.

Cooperating with professional ODM service providers can help small and medium-sized enterprises shorten product development cycles, improve product quality, reduce product costs, etc.

The main advantage of OEM is that the customer retains complete control over the design. When using OEM, there are almost no intellectual property restrictions. Another benefit of using OEM is the flexibility of product design compared to ODM. OEM can manufacture products to any specification, while ODM products are limited to predetermined designs.

Many Chinese suppliers settled in enterprise-china provide ODM and OEM. Welcome to click on enterprise-china for detailed consultation.