What are the differences between OEM, ODM and OBM?

Although OEM, ODM and OBM look very similar, their meanings are completely different.Foreign trade factories are at different stages, and their profits vary greatly.So today Ueeshop is here to talk to you in detail, what do these three mean, and what are the differences between them?

OEM OEM is the abbreviation of Original Equipment Manufacturer, that is, original equipment manufacturer.OEM is actually authorized OEM production, which means that the factory produces products according to the requirements of other manufacturers.The factory itself does not have product property rights.The development of OEM factories is mostly determined by the development of upstream factories. If the other party's demand is large, the factory's orders will be more. If the other party's demand is small, the factory's orders will also decrease sharply.At the same time, since it is only OEM production, the profit is relatively slim.In the early days, domestic labor costs were low, and the profits from this part were relatively considerable. However, as domestic labor costs continue to increase, 

OBM OBM is the abbreviation of Original Brand Manufacturer, that is, the original brand manufacturer.OBM factory has its own brand, develops new products by itself, produces products by itself, and sells products by itself.OBM factories have a very high degree of autonomy. Whether there are many orders depends entirely on whether the products developed by the OBM factory meet the needs of the public, whether the sales strategy is appropriate, etc.After the OBM factory becomes larger, it can also find OEM factories to produce on its behalf, which is upstream of the OEM factories.For now, most OEM factories are facing the pressure of low profits and high costs, so they are transforming into OBM factories.Only by having its own products and brands can a factory go a long way, otherwise it will continue to be controlled by others.

ODM ODM is the abbreviation of Original Design Manufacturer. ODM means that the factory designs its own products and is favored by manufacturers of other brands.According to the needs of the other party, the product is slightly modified and finally sold under the name of the other party's brand.The profit of an ODM factory will be higher than that of an OEM factory, but slightly lower than that of an OBM factory.But the risks are also lower and the autonomy is higher.