References 1:
What does OEM mean?
OEM, also known as OEM and OEM, was first popular in developed countries such as Europe and America. It is the rules of the game for large international companies to find their respective comparative advantages, which can reduce production costs and increase brand added value. In recent years, this mode of production is quite popular in domestic household appliances industry, such as TCL producing famous brands of washing machines in Suzhou Samsung and Changhong producing famous brands of washing machines in Ningbo Sheng Di. Specifically, OEM refers to the original equipment manufacturer, ODM refers to the original design manufacturer, and OBM refers to the original brand manufacturer. Party A takes a fancy to Party B's products and lets Party B produce and use Party A's trademark. For Party A, this is called OEM; . Party A brings its own technology and design to Party B for processing, which is called ODM；; For Party B, it is only responsible for producing and processing other people's products, and then affixing other people's trademarks. This is called OBM.
Reference 2:
What does OEM mean?
OEM is the abbreviation of English Original Equipment Manufacturer, which means original equipment manufacturer.
Reference 3:
What does OEM mean?
Noun explanation 1:OEM is the abbreviation of Original Equipment manufacturing, which refers to a mode of "OEM", that is, producers do not directly produce products, but use their own "key core technologies" to design, develop and control sales channels, and entrust specific processing tasks to other enterprises. This method is a common phenomenon that has gradually emerged in the world after the development of the electronic industry, and it has been adopted by big international enterprises such as Microsoft and IBM.
Noun explanation 2:OEM is the abbreviation of English original equipment manufacturer. Literally, it should be translated as original equipment manufacturer, which means that one manufacturer produces products and product accessories for another manufacturer according to its requirements, also known as OEM or authorized OEM. It can represent outsourcing or subcontracting. The domestic custom is called cooperative production, and the third is processing with supplied materials.
What can OEM bring you (good screen name)
OEM customers are the market. The more OEM customers, the higher the market share of your products.
Some experts believe that OEM is the product of the increasingly detailed division of labor in the global economic integration. It can increase the allocation of innovative potential resources for enterprises and reduce the investment in fixed assets as much as possible. At present, in China, a manufacturer wants to extend his brand, and there are three ways before him: either to promote himself; Either merge some related enterprises; Either export business, export brands, engage in brand-name production, and carry out so-called "virtual management." In practice, most enterprises tend to adopt the third method.
After mastering the core technology of products and establishing a mature marketing network, enterprises can no longer directly put into production, but complete the production task of their own products by letting other enterprises produce on their behalf. In this way, you only need to pay for materials and processing fees, and there is no risk of equipment depreciation, self-built factories and production management. You can also place orders flexibly according to market changes at any time. This can promote the finished goods business to form new business advantages, cultivate and expand the internal expansion of enterprises, improve business potential and management level, and thus move towards a higher level of capital operation.
Origin and development of OEM
OEM is the only way under the trend of socialized mass production and cooperation, and it is also one of the effective ways to rationalize resources and the result of socialized mass production. In Europe, the OEM Trade Association was established as early as the 1960s. 198 OEM production and trade reached 350 billion euros, accounting for more than 14% of the total industrial output value in Europe. OEM production has become an important part of modern industrial production. With the further acceleration of economic globalization, OEM demanders may choose OEM suppliers in a wider range, and their personality is to transfer to countries and regions with low processing and manufacturing costs.
In Asia, in order to quickly occupy the market and reduce production costs, Japanese enterprises first adopted the form of international OEM production and trade. The soaring of "Four Little Dragons in Asia" is also closely related to OEM. Among them, Taiwan Province Province has already become the world's largest PC OEM base, and India has also become the world's largest computer software exporter through OEM. Who is omnipotent in IT industry from technology to components to functional modules of software? Pfeiffer, president of Compaq, said: "Make money in the most direct way!" And publicly said to save the burden of those so-called assets (factory buildings, equipment, office buildings, etc.). Some people even say: OEM has made the whole IT industry! The annual sales revenue of Nike in the United States is as high as $2 billion, but there is no production factory. It only focuses on research, design and marketing, and all products are OEM, which has become a successful model of OEM in the world.
Reasons for the rapid development of OEM in international trade
OEM is widely used in manufacturing industry, especially in the rapidly developing information industry. For example, according to the statistics of IDC(InternationalDigitalGroup), more than 95% of the hard disks used by PC manufacturers around the world are brought by Seagate, Quantum and Western Digital in the form of OEM. The reason why it can be widely used is that it meets the needs of the new competitive situation brought about by the rapid development of global science and technology since the 1990s. With its flexible and effective operation mode, OEM has adapted to the development of this new situation and has been widely adopted.
OEM meets the needs of the rapid development of science and technology.
The rapid development of science and technology has led to the shortening of product life cycle. The competition mode of enterprises is changing from the production mode focusing on expanding production scale and reducing production cost to the market operation mode focusing on the application of new technologies and the rapid introduction of new products. According to IDC data, in 1950s and 1960s, the average life cycle of electronic products was 10- 12 years, but in 1990s, this value dropped to 6- 18 months. In the era of electronic information, in order to win competition, business operators sometimes increase huge investment in new product research and development. In order to turn the research results into commodities and occupy the market as soon as possible, many large enterprises do not produce key parts themselves, but contract out auxiliary parts by OEM, so that other enterprises can produce them, which can not only ensure that the production cycle is shortened, but also use the surplus funds saved by production equipment for research and development. It enables enterprises to maintain a virtuous circle in the reaction speed from time to time, and enterprises can adjust the production scale in time according to the changes in the market situation, thus it is possible to maintain a flexible production mechanism that adapts to the market development trend. On the other hand, the shortening of product life cycle will inevitably increase the mental loss of enterprises' investment in production equipment. In order to reduce the opportunity cost, making full use of external resources is a strategy of "borrowing arrows from grass boats". (Group announcement)
OEM adapts to the development needs of world-class brands.
Economic competition is more and more spread all over the world, and brands and channels are playing an increasingly important role in the final value of actual goods. The annotation of the original manufacturer's bid under OEM mode just illustrates the importance of this point.
In the economic competition, people are more and more aware of the importance of brand. It is precisely because only by establishing a good image among consumers can we win the support of more marketing channel partners and let our products penetrate into more habitual consumer groups by working together with Qi Xin, a channel partner. For this reason, many multinational companies with good business performance have been paying attention to the construction of brand image and marketing channels. Therefore, making full use of OEM to push mature products or products that other enterprises have production advantages to their own marketing channels and win a wider range of consumers by using their own advantages in value-added services can also be called "borrowing chickens to lay eggs".
OEM adapts to the development of global information management system.
With the development of science and technology, Computer Integrated Production System (CIMS) has been widely used in the production process, and quality has gradually become a controllable factor in the production process, which has brought material guarantee for the main machinery factory to bring consumers products with corresponding quality suitable for consumption needs. This is one of the reasons why OEM is popular in the information industry with a high degree of production automation, and it is also one of the reasons why multinational companies such as IBM and HP, which have only hundreds of thousands of employees, promote sales of tens of billions of dollars. Putting limited resources into channel construction has also brought fundamental guarantee for enterprises to improve market response speed.
OEM adapts to bring complete solutions to customers.
In the era of information economy, the division of labor is becoming more and more detailed, new products are emerging one after another, and the high-tech content is gradually improving. It is impossible for final consumers to determine the applicability of products according to their technological content, precisely because they need all-round services based on solutions. In a sense, modern enterprise competition is to evaluate the potential of enterprises, discover consumer demand and bring them a comprehensive closing plan. The importance of a single product is gradually decreasing. The real problem is how to meet the increasingly complex and personalized consumer demand.
OEM puts forward a good way: on the basis of its own proprietary technology, the enterprise integrates into other products produced by OEM, bringing customers solutions suitable for their own needs, which not only promotes the development of the enterprise's own technology, strengthens the influence of its own brand, but also enables customers to obtain more comprehensive, timely and thoughtful services from comprehensive solutions. On the other hand, OEM enterprises have also developed under the impetus of enterprises, which fully embodies the principle of rational allocation of resources. In addition, OEM can allocate limited internal resources more effectively, minimize management levels and improve management efficiency.
OEM has adapted to the need of establishing new competitive advantages.
The development of modern economy has changed people's views on simple competition, and competition and cooperation have become the two major driving forces for the development of modern enterprises. In the products with their own advantages, the use of competitors' OEM products makes their advantages more prominent, and at the same time, competitors have new development space, and competition has become cooperation. At the same time, on the day when science and technology tell development, it is difficult for an enterprise to master all patented technologies of products at one time, and bring products to each other through OEM, which can ensure the integrity of intellectual property rights. So as to avoid the waste of resources caused by disputes or repeated development, promote the market influence of a certain technology, make it a new industry standard or a group alliance standard, and make disorderly competition relatively orderly. & lt (change yourself)