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 called OEM or authorized OEM. It can represent outsourcing or subcontracting. It used to be called cooperative production in China.
What can OEM bring you?
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. We can increase the allocation of our own resources in terms of innovation ability 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 do it himself; Either merge some related enterprises; Either export business, export brands, engage in brand-name production, and carry out the 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, they only need to pay the cost of materials and processing fees, without taking the risks of equipment depreciation, self-built factories and production management, and they 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, and improve the management ability and management level of enterprises.
Most small and medium-sized manufacturing enterprises are unable to invest a lot of money in marketing and advertising promotion due to the lack of capital market operation mechanism and financial support, and it is difficult for good quality products to occupy a place in the market. Therefore, through OEM cooperation, small enterprises can use the brand effect and marketing network of large enterprises to increase output, expand sales and win greater economic benefits, and can also improve their manufacturing management level by introducing production processes of well-known brands. Example: Skyworth Group, Galanz.
From this standpoint, we can re-examine the opportunities that OEM brings to China's home appliance industry. On the one hand, it can fully operate the existing domestic production lines and labor resources to meet the needs of short-term interests of enterprises; On the other hand, enterprises can learn experience, technology and management from abroad through OEM, so as to gain time for building their own brands and support their long-term interests. At the same time, domestic enterprises can speed up the reorganization of brand resources through OEM. Domestic home appliance enterprises should make their factories run in an all-round way through OEM, improve their internal management level, product quality and exercise the quality of workers. After China's entry into WTO, international home appliance enterprises will pose a great threat to domestic brands. Although this transition period may be longer and the business model of technology, industry and trade integration of domestic household appliance enterprises will continue for some time, it is an inevitable trend.
Now people are unkind and don't ask the best questions.
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