Views: 1 Author: Site Editor Publish Time: 2022-08-18 Origin: Site
OEM (original equipment manufacturer) and ODM (original design manufacturer) are two licensing strategies used in the fashion industry. They both involve one company granting another manufacturer the right to reproduce a product using its name, but there are significant differences between these two business models. OEMs make products for only one customer, while ODMs make products for multiple customers.
OEM represents a single contracted brand producing a complete finished product. This model allows the brand to focus on sales and marketing without wasting time or money on saleable products.
The brand specifies the design, fabric, color, cost, and finishing and then works with its contractor to ensure compliance with all legal requirements, such as safety standards and copyright regulations.
The final step in the process is to ask the contractor to prove their competence by sending samples of their work. After approval, the
OEMs mass produce products and ship them directly to the brand's warehouse.
ODM manufactures finished products for multiple customers with no design or product feature limitations other than compliance with safety regulations. It provides a "blank slate" where the customer controls every design detail, including fabric selection, color, hardware finishes, etc. Unlike OEMs which produce a batch of the same product for a brand, ODM only produces a small number of different products for each customer.
Investing in an ODM manufacturer means you have more freedom to create new designs and styles. However, with OEM, everything is handled by the supplier. So, if you want to make changes or try something new, choose an ODM factory for the job.
ODMs do not need a complicated sewing process because they usually sew a sample before mass production. Also, this step should be done manually during the OEM process, making it more time-consuming.
You will complete the product design before manufacturing, so no additional costs are incurred.
ODM lead times are usually shorter than OEMs because they only produce one sample before mass production, which means you can deliver your items faster even if it takes a while for all samples to be approved.
Your brand name or logo will not appear on products made through the ODM process, so this may prevent you from expanding your business.
Your responsibility for the finished product begins after they are delivered, which means you will not receive prior revenue from the ODM manufacturer for selling these items. In addition, you should not expect any reimbursement for expenses you have already paid to the supplier.
It is more difficult to determine if an ODM supplier is reliable than contacting an OEM manufacturer who has been around longer and has some references already. This is especially important for new ODMs, as they are still developing their business.
You cannot be 100% sure that the product manufactured through the ODM process will meet all your requirements, specifications, and preferences (colors, sewing styles, etc.)
Because everything in the OEM process happens under one company's roof, you can quickly resolve any issues or make changes before production begins.
You have complete control over the manufacturing process from A to Z, so you don't have to worry about additional costs or problems that may arise during production.
The design and logo will be copyrighted, which means they can't be used by anyone else, which can help your business expand.
OEM manufacturers often offer a limited selection of product colors and materials, which is one of the main reasons you should do thorough research before deciding to work with them. This may prevent you from expanding your business later or finding another supplier for a different product.
I hope the above knowledge will help you decide better whether to go with OEM or ODM. Whether you choose OEM or ODM processing, another more important decision to be addressed first is to pick a reliable bra manufacturer. Waiting is the leading custom bra manufacturer in China. If you are looking for a reliable bra manufacturer, welcome to leave a message or contact us directly.
