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OEM vs ODM manufacturing: What’s the difference?

ODM vs OEM manufacturing: What’s the difference?

Over the years, the OEM and ODM business models have evolved. These solutions focus on providing a service that meets the needs of each customer, with several technical and visual customization options.

So before you look for a manufacturer, it is important for you to clear the difference between OME manufacturing and ODM manufacturing. Understanding the two terms and their difference is important when planning to import goods from other country.

In this artical, we will help you to figure out the two special terms.

What is OEM manufacturing?

OEM representing “Original Equipment Manufacturing”. OEM manufacturing refers to a manufacturer creates and manufactures products according to the your deisgn and specifications. OEM factory has minimal input into any part of a brand’s or design’s production process, focusing only manufacturing processes.

The manufacturer only need to simply follows the instructions given by you ordering a production.

What is ODM manufacturing?

ODM refers to “Original Design Manufacturing” and ODM manufacturing refers to a manufacturer has the capabilities to design and develop, then manufactures and sell products themselves. You can choose manufacturer’s existing design and make negligible alterations to the goods or differentiate yourself from the pack by designing a unique packaging. Then selling the products under your brand.

The difference between OEM and ODM

For OEM manufacturing service, you may need a lot of time to come up with a product design and arrange a custom production line. But for ODM solution, you can save time in the setting up period. But for OEM, you retains total creative control over your own design. Whereas ODM products are restricted to a predetermined design.

However, The advantage of ODM is that you do not need to invest millions of dollars into research and development in order to create a new product from scratch. And by eliminating or vastly reducing the expense of product development, you can focus more on marketing strategies.

Points to Note When choosing OEM and ODM, you should consider the following things:

  1. Do you have ability to creat your won deisgn?
  2. Is it easier for you to produce a product to a design brief, rather than invest time and money into developing a product yourself?
  3. Do you have legal documents in place to protect your team and assets?

When you choosing OEM manufacturing, you have to guard your designs as intellectual property, lest it be copied and sold by another company for a lower price. Amazon, private label websites E-commerce business or customization service business model are more suitable for OEM service, because you can create your own brand and stand out among many designs.

When you choosing ODM manufacturing, it can be more difficult to differentiate your product from competitors’ products that are manufactured according to the same design. Although ODM requires less start-up capital, price competition tends to be steeper.

Greentime is a professional socks supplier in China. We do not only manufacture socks but we also design different kinds of patterns. So we support any kind of customization, OEM, ODM, LOGO print, Packeage design,etc,.

We have our own design team which come out 10-20 new designs per season. So if you are still worried about the unique design for your socks or you are looking for a manufacturer to manufacture your socks, we are your best choice!

We already support hundreds of customers start their socks business whatever for wholesalers, E-commerce executives and retailers.

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