CM factory refers to the contract manufacturing factory.
Brief introduction of contract manufacturing factory: contract manufacturing refers to a form of cooperation in which an enterprise signs a contract with a foreign manufacturer, and the manufacturer produces products and the enterprise is responsible for product sales. Contract manufacturing can enable enterprises to enter the international market as soon as possible with minimum risk.
It is beneficial for enterprises to establish cooperative partnerships with foreign manufacturers or purchase all their property rights in the future. Using contract manufacturing, enterprises transfer all or part of their production work and responsibilities to the other party of the contract, so as to concentrate on marketing, which is an effective way to expand the international market. The advantage of this model lies in that enterprises that implement contract manufacturing can not only export intangible assets such as technology or trademarks, but also export production factors such as labor services and management, as well as part of capital.