What is OEM? What is the difference between OEM and ODM?

What is OEM?

OEM stands for Original Equipment Manufacturer, which means that the manufacturer produces according to the original manufacturer's needs and authorization under specific conditions. All design drawings are manufactured and processed completely according to the design of the upstream manufacturer, which is simply OEM.

Currently, all major hardware brands have OEM manufacturers, which means that the products are not produced by the original brand manufacturers, but are produced in cooperation with a processing factory. The products are labeled with their own product brands. Compared with selling products based on brand value, OEM products are currently commonly found in mid- and low-end products of first-line brands.

OEM can also be understood as OEM production and private label production. It was first popular in developed countries such as Europe and the United States. It is a set of rules for large international companies to find their respective comparative advantages. It can reduce production costs and increase brand added value.

What are the differences between OEM and ODM?

When it comes to OEM, it is easy for experts to associate it with ODM. These two concepts have many similar meanings. ODM (Original Design Manufacturer) meets the needs of buyers through efficient product development speed and competitive manufacturing efficiency in product design and development activities. After the technical ability is sufficient, the design ability will be improved, and then it will be possible to start taking on projects and handle related matters of design and development. The most obvious difference between OEM and ODM is that OEM is original factory commissioned manufacturing, while ODM is original factory commissioned design. One is commissioned manufacturing, and the other is commissioned design, which is also the biggest difference between the two.

This is all the knowledge about OEM in this issue. If you want to get more information about OEM, please pay attention and we will continue to answer your questions.