Who among us hasn’t dreamed at least once of setting up our own manufacturing business? But what should you do if it’s not possible to organize production in Russia? As we know, it’s possible to manufacture products for sale not only within your own country. At International Commodity Fair 2019, you will meet representatives of Chinese companies working under the ODM and OEM principles.
What’s the difference?
ODM (Original Design Manufacturer) refers to contract manufacturing of specific products with unique designs or special features. In other words, you do the development, while the necessary preparations for production as well as the manufacturing itself are carried out by a Chinese contractor.
OEM (Original Equipment Manufacturer) means contract manufacturing of products that already exist, under your own brand. In short, it’s about copying existing products in China.
Features of ODM
What’s the difference?
ODM (Original Design Manufacturer) refers to contract manufacturing of specific products with unique designs or special features. In other words, you do the development, while the necessary preparations for production as well as the manufacturing itself are carried out by a Chinese contractor.
OEM (Original Equipment Manufacturer) means contract manufacturing of products that already exist, under your own brand. In short, it’s about copying existing products in China.
Features of ODM
An indisputable advantage is your unique design, which gives you a competitive edge in the market.
However, in order for your design solutions to be realized exactly as you envisioned them, constant oversight of the production process is necessary. ODM production also requires either your own team in China or a reliable agent—preferably someone from your own country so that you “speak the same language.”
Finally, ODM production requires much more time than OEM. Pattern development, fittings, the approval of all order details—all of this takes time.
Thus, ODM production is a cooperation option for those who already have some experience in manufacturing.
Features of OEM With the OEM approach, the factory already has models available, so starting production does not take much time. Moreover, you do not need to spend resources on design and implementing new models into production.
However, such products won’t be unique, and you are lucky if the factory sells the same models to different countries. Most often, the manufacturer is focused on a particular country—in this case, you can’t avoid competition.
However, in order for your design solutions to be realized exactly as you envisioned them, constant oversight of the production process is necessary. ODM production also requires either your own team in China or a reliable agent—preferably someone from your own country so that you “speak the same language.”
Finally, ODM production requires much more time than OEM. Pattern development, fittings, the approval of all order details—all of this takes time.
Thus, ODM production is a cooperation option for those who already have some experience in manufacturing.
Features of OEM With the OEM approach, the factory already has models available, so starting production does not take much time. Moreover, you do not need to spend resources on design and implementing new models into production.
However, such products won’t be unique, and you are lucky if the factory sells the same models to different countries. Most often, the manufacturer is focused on a particular country—in this case, you can’t avoid competition.