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What is the difference between OEM and ODM processing?

2023-10-18

What is the difference between OEM and ODM processing?

There are three differences between OEM processing and ODM processing:

1. The overview of the two is different:

1. Overview of OEM processing: OEM is the abbreviation of Original Equipment Manufacturer in English. Brand production or authorized OEM production.

2. Overview of ODM processing: ODM is the abbreviation of Original Design Manufacturer in English, and the literal translation is "Original Design Manufacturer". ODM means that after a certain manufacturer designs a certain product, it may be favored by other companies in some cases, and they are required to produce it with the latter's brand name, or slightly modify the design for production. Second, the two methods are different:

1. OEM processing method:

(1) Customers bring their own brand and provide packaging materials, and the rest are provided by the brand (such as formula, product processing, etc.).

(2) Customers bring their own brands, packaging materials and product formulas, and the brand side provides raw materials and product processing.

(3) The brand side provides customers with one-stop services from brand registration to product processing.

(4) The brand side directly sells the formula of high-quality products, and charges a processing fee for each production.

(5) The brand side directly provides agency or wholesale of existing brand products.

2. ODM processing method:

(1) Buyout method: The brand owner buys out the design of a certain type of product that is ready-made by the ODM manufacturer, or the brand owner independently asks the ODM manufacturer to design a product plan for itself.

(2) Non-buyout method: The brand owner does not buy out the design of a certain model product of the ODM manufacturer, and the ODM manufacturer can sell the design of the same model product to other brands at the same time in a non-buyout method. When these two or more brands share a design, the difference between the products of the two brands is mainly in the appearance.

3. The product providers of the two are different:

1. Product provider for OEM processing: OEM design is provided by the brand.

2. Product provider for ODM processing: ODM is a product independently designed by the manufacturer.

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