Nowadays, many brands will be confronted with the crisis of being eliminated from the whole market for various reasons. How to keep competitiveness in society with a constantly updated information explosion is a problem that every enterprise has to think about.
Some OEM/ODM manufacturing enterprises have emerged. Meanwhile, in recent years, water bottle manufacturers have constantly improved to become excellent, with a strong processing capacity and rich product development experiences, OEM/ODM service capabilities. Besides, this kind of OEM/ODM production mode can make the enterprise capital turnover more efficient, bear less risk, make resource allocation more reasonable, and give full play to industry advantages.
ODM stands for Original Design Manufacturer, and the ODM model refers to a manufacturer who designs and manufactures products according to the specifications and requirements of the brand operator. The manufacturer who undertakes the design and manufacturing business is called an ODM manufacturer, and the products it manufactured are our ODM products.
For the entrusting party, ODM can save a lot of R&D time by handing over part of the conception and design work to the entrusted party, or by selecting the desired products among those designed by other popular brands to be sold under their own brands. For the entrusted party, being responsible for the important aspect of product development in a niche industry can yield higher profits than OEMs who simply perform manufacturing and assembly.
ODM manufacturers generally have core technology and rich experience in production management and can provide customers with all services from product development, design, and manufacturing to after-sale maintenance. Customers only need to ask ODM suppliers about product functions and performance. ODM manufacturers can also carry out completely independent product development, and design, and go to the market with self-designed products to seek orders from brand operators and use the buyer’s brand to ship, so the dependence on brand operators is low.
When a water bottle manufacturer designed a product, in some cases, another company may notice it and request to produce it with the latter’s brand name or modify the original design slightly and then go online to produce it. Among them, manufacturers who undertake design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.
The product solution designed by the ODM vendor can be provided to the brand owner with or without a buyout.
Buy-out method: The brand owner buys out the design of a certain model of the ODM manufacturer’s ready-made products, or the brand owner separately asks the ODM manufacturer to design the product solution for itself.
Non-buyout: The brand owner does not buy out the design of a certain model of the ODM, and the ODM can sell the design of the same model to other brands at the same time in a non-buyout way. When these two or more brands share a design, the difference between the two brands’ products is mainly in appearance.OEM
OEM stands for Original Equipment Manufacturer, i.e. OEM production. Under the OEM model, the brand owner does not manufacture the product directly but is responsible for designing and developing new products using the key core technology it possesses, controlling the sales channels, and outsourcing the task of production to OEM manufacturers by contract orders.
The value chain activities of ODM manufacturers include product design, manufacturing, and assembly, and can work with brand operators to agree on product specifications and work together on product design or improvement, while OEM manufacturers only carry out the final manufacturing and assembly process, generally following the specifications specified by customers to produce.
In the context of the increasing speed of product iteration, OEM manufacturers to form technical accumulation, enhance innovation capabilities, and complete the transformation to ODM production is the way to survive and thrive in the fierce market competition.
In order to increase production and sales, to win market time, through the contract ordering to entrust other similar products manufacturer’s production, the products ordered to buy out at a low price and then directly affixed to their own brand trademarks. This kind of commissioned production cooperation is OEM, and the manufacturer who undertakes this processing task is called an OEM manufacturer, whose products are OEM products.
Insulated water bottle OEM vs. ODM
(1) ODM has received a product design proposed by the entrusted party, regardless of who completes the overall design, and the entrusted party is not allowed to provide third parties with products using the design.
(2) OEM products are tailor-made for the brand manufacturer. The production can only use the brand name, and absolutely can not be crowned with the producer’s own name and then production. It is the brand producer that does not directly produce the product, entrusted to other manufacturers of similar products.
(1) ODM depends on whether the brand company has bought out the copyright of the product. If not, the manufacturer has the right to organize its own production, as long as there is no corporate company design identification.
(2) OEM is done from design to production by the producing party itself, and the labeling party buys away after the product is formed. Whether the producer can produce the same product for a third party depends on whether the labeling party buys out the design.
The core of the difference between OEM and ODM lies in who enjoys the intellectual property rights of the product. If the client enjoys the intellectual property rights of the product, it is OEM; and if the overall design is carried out by the producer, it is ODM, commonly known as “OEM”.
In an industrial society, OEM and ODM can be commonplace. For reasons of manufacturing cost, transportation convenience, and saving development time, well-known brands are generally willing to find other OEM or ODM manufacturers. When looking for such manufacturing suppliers, well-known brands also have to bear a lot of responsibility. After all, the product is crowned by its own brand, if the product quality is not good, fewer customers will be looking for complaints.
Therefore, brand companies will certainly carry out strict quality control during the commission processing. But after the end of OEM, the quality is not guaranteed. Therefore, when a businessman tells you that the manufacturer of a product is an OEM or ODM product of a major brand, never believe that its quality is equal to that brand. The only thing you can believe is that this manufacturer has a certain production capacity.
What are the advantages of choosing OEM/ODM processing mode?
Production on a large scale, effective cost reduction
No matter in which industry, especially in manufacturing processing, we need to pay attention to quantification and scale, because manufacturing enterprises in the upstream of the industrial chain, and raw materials, packaging, and other enterprises are bundled together. Production and manufacturing have a number of requirements. Today, many OEM / ODM companies have their own R & D team and technical core to scale up production.
For example, Everich And Tomic Housewares Co., Ltd. has a professional mechanized production, equipped with a sound product quality control system, which has the advantage of providing one-stop OEM/ODM services for enterprises, avoiding the quality problems of multiple productions, as well as reducing the cost of manufacturing products. At the same time, the smaller the unit cost of production will be, so the factory can have stronger bargaining power, which can be raw materials and packaging material prices to the lowest. Then the brand can get the product at a lower price and increase its own profits so that the enterprise assets can be effectively used.
Focus on product research and development to improve company competitiveness
OEM/ODM enterprise pays much attention to product research and development. The company’s professional R & D team will be based on the different seasons, products, and market demand to understand the current hot ingredient raw materials, what is the form of packaging materials, and other aspects to create some new featured products, to create hot products, to expand their product line. These are conducive to the brand dealing with changes in market demand conditions that lead to product stagnation, maintaining their own enterprise characteristics, and helping brands to increase their competitiveness.
Rich management experience to improve the enterprises’ efficiency
Everich water bottle manufacturer has accumulated rich experience in product development, planning, and cost control through cooperation with different brands in the industry, which is a good opportunity for some new enterprises or small and medium-sized enterprises to discuss with us incorporation, which can enrich their own management experience and have more reference when making decisions to improve their own efficiency. Cooperating with OEM/ODM companies is mutually beneficial cooperation for either party. It may be a new choice for brand owners in a society where renewal is so fast.
Supported by a talented design team, Everichhydro will bring your creative ideas into reality to enrich the product catalog and benefit your business. After analyzing product planning and understanding the actual needs of local customers, our design team formulate product positioning and design standards and formed a “water bottle map” based on the customer segmentation model. We have established an enforceable standard process system and design requirements system to support your wholesale project implementation. Meanwhile, we focus on functional implementation. Finding new breakthrough points in the current custom drinkware products to achieve more needs.