Manufacturing
MANUFACTURING IN CHINA HAS A VAST STANDARD
For readers who have or are looking to start their own FBA (Fulfillment By Amazon) business, ODM is by far the more common path. Most of us don’t have R&D departments working around the clock for us. And, if you do have a winning OEM idea, private label selling is a great way to generate the start-up capital and experience you’ll need to get it off the ground. Let us help you with this.
OEM | OWNED EQUIPMENT MANUFACTURING
OEM, refers to products that are fully designed by one company and then licensed out to a manufacturer to produce. The Apple iPhone, for example, was invented and designed by Apple, and then licensed out to Foxconn to produce. As a result, the iPhone enjoys a higher level of product differentiation because its design is only available to Apple and its licensed manufacturer.
ODM | OWNED DESIGN MANUFACURING
ODM, is not to be confused with “private labeling.” This is where an importer selects an already-existing product design from a factory catalog, makes a few small changes and sells it under their own brand name. Changes can include things like packaging or product bundles, colors and branding, and some limited adjustments to components or functionality. The factories design some or all of the product themselves before manufacturing them for customers.
OBM | OWNED BRAND MANUFACURING
The term OBM stands for Original Brand Manufacturer. It takes care of the entire production procedures, from design, engineer, manufacture, supply chain to marketing. OBM fully owns the brand and products. OBM is the option for the manufacturer who wants to produce sophisticated products. The continuously increasing importance attended to products with a brand signet on it led to the application of brands to otherwise anonymous products. Sharing of production between an anonymous producing company or manufacturer and selling through a brand owner without specific interest to produce the product by itself does not add any real value for the customer.