Why do thermometers need OEMs?

The so-called "foundry" actually involves two parties in a kind of cooperation, one is the client and the other is the OEM. And "foundry" has two modes, one is OEM and the other is ODM. Many thermometer brands have chosen OEM, so what is OEM? Considering that ordinary netizens may not be familiar with these two concepts, we will use the examples of "doing" and "selling" cake business around us to explain.

Why do thermometers need OEMs

What is OEM? Why do thermometers need OEMs?

Suppose you sell cakes yourself, and the cakes you sell are produced by yourself and have registered a patented brand name. When you first sold cakes, because you are still a novice in this industry, even if your cakes are delicious, your cake’s reputation is not big enough, so the sales are average, so rely on the manufacturing capacity of your store. You can manufacture as much as you can sell. But because your cakes are really delicious, and gradually become more famous in the industry, more and more people buy your cakes to eat, so the sales volume has increased sharply. Since the production capacity of your store is temporarily fixed at only that large, it is impossible to complete a large number of production tasks that suddenly increase, so what should you do? You can ask a colleague who makes cakes for help at this time. At this time, you need to explain to them clearly what you want these cakes, let your colleagues do it for yourself according to their requirements, and finally put your own brand on them, and then give them a certain amount of compensation. This is actually a form of OEM.

Why do thermometers need OEMs-2

There is another situation, we all know that cakes need packaging, so although you can produce cakes in your own store, but you will not make packaging, then you can design it yourself or find packaging directly Manufacturers can design, and then produce the packaging image that belongs to your own brand. You can also directly use the inherent packaging styles of those manufacturers and directly paste your own brand. You no longer need to design or call it to redesign. This is another form of OEM.

In a nutshell, the so-called OEM means that company A is entrusted to produce products for other companies, and does not use company A’s own brand, nor is it responsible for the sales of these products. It is only for the processing and production of the entrusted company, or is completely designed and manufactured by the entrusted company. Process requires production.

What is ODM?

It doesn’t matter if you haven’t been in the cake business before or if you are in the cake business. In other words, it doesn’t matter whether you have the ability to manufacture cakes independently. The cake business (regardless of whether it has its own brand), has designed and manufactured a cake style that is very satisfactory to you, you want to buy the production patent of this product with it, and then put your own brand name on the market Go up and sell. So you can go to discuss with him, ask him if he can put this product on your brand, and then how much do you pay to him to reach an agreement. Good products may often be liked by many people, so there may be another person B who likes this cake like you, so he also goes to the store to discuss cooperation like you, then B will have the same as you later This product may also be sold under B's own brand at the same time. But if this happens, it will create a certain degree of strong competition for your interests, and because this cake is very easy to sell in the market, you don’t want others to sell this cake at the same time to compete with you, but want to own it alone. What should I do with this product? There is a way, that is, you have to pay more to buy the production patents of this cake, and ask it to no longer produce this cake for other people, but only produce it for you. But the premise is that you must be able to provide enough funds to make it willing to produce only for you. This is ODM.

There is another situation, even if it is a well-known cake brand, although it can design and manufacture cakes on its own, someone D can also design and manufacture some cakes that make it very satisfied, so it can go to D to discuss It is necessary to buy out the design and manufacture of this cake, and then sell it under its own brand name. D is not allowed to sell this cake to others or sell it under D’s own name.

In a nutshell, ODM means that company A designs and manufactures several projectors by itself, and then one or several models of them are favored by other companies, so other companies will negotiate with company A and ask company A Purchase a certain amount or buy out the production of this product completely. After the transaction, other companies have the right to make some modifications to the product. Company A needs to make certain improvements to these products according to the requirements of the entrusting company, but it also does not use the brand of Company A. , Company A is also not responsible for product sales.