Noun explanation 1: OEM is an abbreviation of Original Equipment Manufacture, which refers to a "foundry production" mode, its meaning is that producers are not directly producing products, but using their own master "key core Technology, responsible for designing and development, controlling sales "channels", and specific processing tasks handed over to other companies to do. This approach is a common phenomenon that is gradually generated in the world after a lot of development, and the main major companies such as Microsoft, IBM, etc. are used in this way.
Noun explanation 2: OEM is the abbreviation of English Original Equipment Manufacture, according to literally, it should be translated into original equipment manufacturer, refers to a manufacturer according to another manufacturer, and is also known for its production of products and product accessories, also known as a fixed-card production or Authorized OPT production. You can represent the processing of the foreign commission, or represent the processing contract processing. Domestic habits are called collaboration production, three to process
What can OEM bring you?
OEM customers mean the market, the more OEM customers, the higher the market share of your product.
Some experts believe that OEM is a product that is increasingly refined in the division of labor of the global economic integration industry. It can increase its own resources in innovative capabilities to enterprises, and reduce the investment in fixed assets as much as possible.
At home, when a manufacturer has to extends his brand, there are three ways to play in front of them: either do it; either mergers and some related companies; either output management, output brand, set a custom production, so-called " Virtual operation. "In practice, most companies tend to adopt third practices.
Enterprises have to carry out production tasks in the production of product core technologies and establish a mature marketing network, but to complete their product production tasks by allowing other enterprises to produce. This way, only payment material costs and Processing, without having to bear the risk of equipment depreciation, self-constructing factory and production management, but also ready to place a flexible on-demand of market changes. This can promote the formation business to form new business advantages, cultivate and strengthen the inner expansion of the company. Force, improve business capabilities and management levels, thereby going to higher levels of capital operations. Example: Wuxi Little Swan
Most of the small and medium-sized manufacturing companies have no support for the market operation mechanism and financial support, most of them cannot obtain large amounts of funds to invest marketing and advertising, resulting in a very good product to have a place in the market. Therefore, cooperation through OEM You can make small businesses to increase production volume, expand sales and win greater economic benefits by marketing networks, and can also improve their production and manufacturing management level by introducing well-known brands. Example: Skyworth Group, Galanz
Standing on this position, we can re-examine the opportunity to bring the OEM to China's home technology. On the one hand, it can make the domestic existing production line and labor resources to meet the needs of the short-term interests of the enterprise; on the other hand, the company may Through OEM, learn experience, learning technology, learning management, to forge your brand to fight for time, to support the long-term interests of enterprises. At the same time, through the use of OEMs, domestic enterprises can accelerate brand resources. Domestic home appliance enterprises should make the factory fully operate, improve the quality of internal management, product quality, and exercise workers. After China's accession to WTO, international home appliance companies will pose a big threat to domestic brands, although This transition period may be relatively long, and the business model of domestic home appliance companies will continue for a while, but this is an inevitable trend.
It is worth mentioning that in the international market, there is an OEM mode, that is, the OEM between strong hands and strong hands. In foreign countries, a well-known home appliance company can do OEM for more than a dozen companies, the other party may be the same well-known Home appliances. A brand, please have a brand for its own brand, must be the area you want to enter, but there is no fully grasped field, and the other party must be an advantageous enterprise in this field. The design is actually one. The process of marking the road. When such OEM came to me between the strong hands, there was a joint development of the market and made a big market. Such OEM belongs to another realm. Example: IBM provides OEM production for Dell Toshiba is the second first place to leave the little swan
