Exploring The Survival Of OEM Enterprises

As we all know, OEM refers to a manufacturer's production of products and accessories according to the requirements of another manufacturer, also known as licensed production or authorization of OEM production.

It can be processed on behalf of the outsourcing Commission, or on behalf of the subcontract processing.

It is commonly called substitute processing.

Also known as OEM or ODM.

Specifically, OEM (OrignalEquipmentManufactuce), namely the original equipment manufacturer, ODM (OOrignalDesignManufactuce), namely the original design manufacturer, OBM (OrignalBrandManufactuce), that is, the original brand manufacturer OEM, also known as licensed production and OEM production, is first popular in developed countries such as Europe and the United States. It is a game rule for international big companies to find their own comparative advantages, which can reduce production costs and increase the added value of brands.

In recent years, this mode of production has become more popular in the domestic appliance industry, such as TCL's production of washing machines in Suzhou Samsung, and Changhong's production of washing machines in Ningbo Di Sheng Ding.

OBM (OrignalBrandManufactuce), the original brand manufacturer.

The A side looks at the B side's product, lets the B party produce, uses the A party trademark, to A side, this is called OEM; the A side brings the technology and the design, lets B side processing, this is called ODM; for the B side, is only responsible for processing and processing others' products, then paste others' trademark, this is called OBM.

In this regard, in fact, the design power of the OEM manufacturers is relatively weak, lagging behind in R & D; secondly, on the production capacity, due to the lack of proper assessment of their capacity, some of them are unable to meet; and there is stock. Due to insufficient experience in the evaluation of market consumption ability, excessive stock in the first half of the year has resulted in excessive inventory pressure in the second half of the year, which has brought great challenges to the capital chain of enterprises, and if it can not be solved in time, the consequences will be hard to imagine.

In the face of the above situation, the OEM enterprises need to strengthen their R & D strength. First, we need to introduce professional design talents, expand R & D and design teams, improve design and research capabilities, increase investment in research and development, and communicate with domestic professional underwear consultants, hoping to integrate with their resources. Secondly, we need to increase production capacity, accurately estimate the industry, do not blindly accept orders, and do well in market research, assess market demand, reduce inventory, and ensure the smooth flow of capital chain.

In the face of the oneness of OEM, enterprises can choose to go: "OEM + private brand", with brand as the main factor and OEM as subsidiary, brand should be the focus of future development of enterprises.

But at present, there are three problems in the process of establishing private brand: the first is capital; the two is the experience of brand operation in the market; the three is research and development capability.

At present, there are still quite a few companies that hang around the OEM and its own brands. The editor thinks that only by changing the way of thinking and finding their own advantages, will it be the ultimate way out to pform their brand?

As far as possible integrate industry resources, complementary advantages, play their respective professional strengths to join forces to jointly expand the cake.

In any case, after 09 years of financial crisis, enterprises have become wiser and the market has begun to revive. However, it has resulted in insufficient employment and recruitment difficulties. In the whole industry, there are many orders and insufficient employment. Enterprises need to strengthen management and improve efficiency.