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What is OEM?
OEM is an abbreviation for “Original Equipment Manufacturing” and refers to a system whereby a manufacturer manufactures another company’s products.
The advantage for the client is that they can expect a certain number of sales because they can produce similar products to those already well-known. A stable sales volume will increase the company’s brand recognition and secure long-term users.
What is ODM?
ODM stands for “Original Design Manufacturing,” and as the “Design” indicates, it refers to planning, developing, and designing products, in addition to manufacturing products of the customer’s brand.
In other words, the client does not develop or research the product but leaves it to the ODM manufacturer.
The difference between OEM production and ODM production is whether or not “planning, development, and design” are also outsourced to the partner along with production.
The advantage for the client side is that they can focus on building and selling their own brands, reducing the time and costs spent on planning, development, design, and manufacturing. In addition to reducing capital investment and manufacturing costs, product development can also be commissioned, allowing companies without expert knowledge or technical capabilities to enter new businesses.