OEM is OEM. What is it about?

OEM, commonly known as OEM, is a special phenomenon in the domestic mobile phone industry and a way for enterprises without mobile phone production qualification to enter the market. The phenomenon of OEM in domestic mobile phone market has existed for many years. That is to say, some enterprises have neither the research and development technology nor the production capacity of mobile phone products, but only buy a large number of mobile phone sets from foreign or other domestic mobile phone manufacturers at one time and then sell them under their own brands. This method was common in the early years of the rise of domestic mobile phones, but with the accumulation of their own funds and technology, some mainstream manufacturers have rarely adopted this way of importing the whole machine. However, there are still some small brands in China that adopt this method in whole or in part.

Scene reproduction 1:

MISS ZHOU bought a mobile phone of China Electronics in Humen Mobile Phone City last year, but it failed to turn it off automatically this year. It was repaired three times, but it was never repaired. Later, she went to the mobile phone industry association to verify the authenticity of the network access license, but found that the information of the network access license was true, but it did not meet the appearance standards published on the website, and it was obviously a mobile phone illegally produced with someone else's "birth certificate". MISS ZHOU went to the store to ask for a return according to the tips of the mobile phone industry association, but the manager refused to return the goods, claiming that although it was a labeling machine, it was not a parallel product.

City Mobile Phone Industry Association called the store manager on February 28th, pointing out to the store manager that this is the so-called "labeling machine" in the industry, which is a kind of "parallel machine". Zhi Li pointed out in particular that "parallel imports" include not only mobile phones without network access licenses, but also labeling machines, counterfeit machines and refurbished machines. "We have also consulted the relevant authorities of the Ministry of Information Industry, and the answer is yes. However, some people confidently said that such a labeling machine does not belong to parallel planes and does not belong to' black mobile phones'! " Finally, through the coordination of the Municipal Mobile Phone Industry Association, the mobile phone store agreed to give MISS ZHOU a refund.

Secret trick 1:

As the fifth largest mobile phone consumption city in China, Dongguan sells about 654.38+10,000 mobile phones every month. The huge mobile phone consumption market has also left a relatively larger market space for "black mobile phones". "In the past two years, the deception of' black mobile phones' has become more subtle, which is highlighted by illegally produced labeling machines, commonly known as' five-code machines'. This kind of mobile phone can find the corresponding serial number on the website of the Ministry of Information Industry, but you will find that these mobile phones are different from those approved by the Ministry of Information Industry. " Zhi Li, secretary-general of the Municipal Mobile Phone Industry Association, told this reporter, "So when buying a mobile phone, we should not only check the serial number of the mobile phone, but also check whether the model and style of the mobile phone are consistent with the pictures published on the website."

It is reported that the "black mobile phone" also gave birth to another industry, which is the so-called license brokerage company. These companies have mobile phone licenses from the Ministry of Information Industry, which means market access. They declared a certain model to the Ministry of Information Industry and obtained network access license and 3C certifications, but only produced a few prototypes for inspection and filing, and then resold this "birth certificate" to other companies or used it to find a foundry for profit. In order to maximize profits, they copied the serial code of mobile phones and used the same serial code on different mobile phones. When hundreds of mobile phones use a serial code, which is commonly known as the "five-code machine", the profit is considerable.

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The small household appliances industry is developing steadily, consumers are enthusiastic about the demand for small household appliances, and the market prospect is very optimistic. However, judging from the sampling results published by local industrial and commercial and quality inspection departments, its quality is still not satisfactory. In an interview with reporters, experts said that it is understandable that many home appliance enterprises have adopted the form of OEM when entering the field of small household appliances, but some enterprises have neglected the management of OEM products, which has led some well-known brands to escape the bad luck of being blacklisted. In fact, it is no secret that OEM is used in the home appliance industry. Some well-known enterprises, especially those focusing on household appliances, transfer the production process of some products, especially small household appliances, to some enterprises specializing in the production of certain products in coastal areas or other regions. Insiders revealed to reporters that OEM is not a bad thing, because some small enterprises in Zhejiang and Guangdong are engaged in the production of small household appliances all the year round, and their production technology is relatively mature, and they are more professional than these OEMs in individual varieties. In this way, the entrusted enterprise can reduce the production cost while ensuring the product quality, and at the same time can concentrate on the original household appliances, which is in line with the overall strategy of the enterprise. As an OEM, it is certainly fun to reap profits, but it is not uncommon that the quality of OEM products is not up to standard or OEM management is poor, thus affecting the OEM brand image. In the last two years, Nikon, Minolta and Kodak frequently recalled digital cameras, which exposed the disadvantages of OEM. The camera production of the three companies all adopts the form of partial OEM. Because some software, hardware and supporting components are designed and manufactured by other companies, the matching and compatibility between components are not necessarily good, which leads to the unreasonable control of product quality. Scam 2

Lu Kaimin, Deputy Secretary-General of China Antibacterial Association, told reporters that OEM is actually a very popular mode of production in the world, but international enterprises have a set of strict standards when choosing OEM manufacturers, because once the products are labeled with their own brands, once there are quality problems, the brand image will be seriously affected. At the same time, the entrusting enterprise will also formulate very severe punishment measures. Once the products are found to be unqualified, they will demand high compensation. However, some domestic enterprises simply pursue brand expansion and reduce costs, and the quality management of brand products is not strict enough. In addition, the reporter learned that disorderly OEM production also affected the after-sales service of products. At present, some home appliance brands do not produce their own products at all, and all accessories and molds are purchased and produced by other manufacturers themselves. If there is no clear stipulation in the contract, the manufacturer will not purchase more accessories, and even the molds produced will not be left behind, so that in after-sales maintenance, the accessories will be in short supply, or even there are no accessories at all. Li Yafei, a lawyer of Beijing Yida Law Firm, told reporters that the United States, Japan and other countries have made it clear in their product quality laws that the OEM is responsible for the products, which is conducive to protecting the rights and interests of the victims and the trial of product liability cases. The concept of producer in China's product quality law includes OEM (nominal manufacturer) and actual manufacturer, and the manufacturer's product liability is solved by the contract between OEM and actual manufacturer. However, at present, OEM contracts between domestic enterprises in China are generally very general, the contract structure is too simple and the contract content is too broad. Compared with foreign OEM and licensing agreements, China's OEM system needs to be further improved. Skill analysis:

OEM is called OEM in Chinese, but there are several ways to paste it.

OEM exists between two parties, namely the brand licensor and the licensee. According to whether the brand is leased or not, OEM can be divided into brand leasing and non-brand leasing. In the former way, the brand authorized manufacturer uses the brand, and the manufacturer runs the whole process of design, procurement, manufacturing and sales. The manufacturer only needs to pay a certain brand rental fee to the brand according to the contract. In the latter way, the brand just outsources the product manufacturing to the manufacturer. Brand owners are responsible for R&D, design and sales of products. The so-called "smile curve" focuses on both ends, and the manufacturing links with low added value in the middle are reserved for those factories with low production costs and large manufacturing scale.

In the former way, brand users are dominant, and they have all-round facilities and capabilities in factories, sales networks and even R&D and design. The only bottleneck is that the brand is not strong enough, and it is necessary to rent a strong brand to expand sales. Of course, the brand licensor will require the product quality and image to meet the requirements. If strong brand capital is involved, brand users may join the strong brand family, and the OEM mode will transition backwards. Many joint ventures of PepsiCo in China are like this. In the latter way, manufacturers usually have the advantages of personnel cost and economies of scale in production, but their ability is relatively limited to the production field, and their competitive advantage is embodied in the manufacturing industry. A typical example is that Shanghai Dafeng Computer produces notebooks of many foreign brands on behalf of others, and Shenzhen Foxconn manufactures Apple ipod, multi-brand mobile phones, digital cameras and other products on behalf of others, so that large manufacturers have abundant capital and technical strength, advanced production equipment and standardized management. Because many brands of products are produced and a large number of low-paid workers are used, the product cost is lower than the products produced by the brands themselves, and the quality may be higher and the cost performance is higher. In this case, the famous brand naturally got on the bridge with the famous OEM professional households.

No matter what kind of OEM, how close the cooperation between the two parties is, product quality and brand reputation should be maintained. Brand owners have strict control over core raw materials, design, production technology, sales channels, brand promotion and other links, and management is paramount. Intangible resources mobilize tangible power.

Generally speaking, the large-scale appearance of OEM in all parts of the world and China is the inevitable trend of socialized mass production development under the market economy. If it is not so cost-effective to produce your own products, why not give them to "professional households"?

Although OEM is very popular, it also brings a series of problems:

1. Social responsibility and social morality. European consumers are now hesitant about Apple's ipod, because there are media reports that it is the product of a sweatshop in China. Shouldn't Apple take some social responsibility for this? Can manufacturing costs be saved without considering social responsibility? The problem has actually shifted.

2. The problem of brand value. The products produced by the same factory, the same workers, the same production equipment, even the same raw materials and components are marked with different brands, but the prices in the market are quite different, which is not only confusing, but also confusing. Where is the famous brand? Is it just that special symbol and the vanity it brings? If the difference between brand-name products and non-brand-name products is only a symbol in the future, then I think the so-called brand value will fall in price in the future.

3. Trade secrets. Your products, mine and his products are all produced in the factory. Who can guarantee that confidential information such as raw materials, parts, appearance and styles will not be leaked?

4. "parallel imports" are rampant. Parallel imports usually refer to smuggled products, but at present many domestic parallel imports are produced by domestic factories. Take the mobile phone as an example. Before 2005, parallel imports of mobile phones flooded, and domestic mobile phones were almost "submerged" by these "famous brand" parallel imports. OEM parallel imports disturb the market order and have a very bad influence on the industry.

Consumer guide:

In this chaotic parallel market, in a market lacking government supervision, there are many showstopper businesses except some honest businesses. For example, in order to maximize profits, they pick up refurbished machines to assemble machines and sell brand-new parallel imports. Therefore, people should be careful when buying parallel mobile phones.