At present, more than 500 kinds of China air purifier brand on the market, but only a handful of brands have their own production workshop. The vast majority of brands, including most international brands are using OEM production mode. So, what is the OEM? Why air purifier brand love produced by OEM?
OEM is English Original Equipment Manufacturer acronym, meaning “OEM”, namely OEM. From the method of operation, OEM production is composed of the principal and the production side, the client holds patented product design and production, production is commissioned by the party responsible. After production, commissioned we buy all products, and then to OEM sales. This production is known as the OEM production, in the production of OEM, the entrusted party is a production of OEM manufacturers.
OEM production is a common mode of production. Chinese the beginning of reform and opening up, the design level is backward, many domestic factories in order to accept the entrustment of foreign brands, according to the design requirements of foreign brands and the production of goods, all goods produced by foreign brands buyout and the unified arrangement of sales channels, this is typical of the production of OEM. We are familiar with the technology company Apple iPhone mobile phone, the main Foxconn commissioned production, while the iPad tablet computer is mainly composed of master production.
The prevalence of OEM and the development of modern industry and globalization has a close relationship. Because of the social division of labor further refined product development, further specialization, many brands have accumulated technology and strong R & D capabilities, but its production workshop does not necessarily have to meet the market demand and production capacity. In addition, due to the globalization of industrial transfer to lower the cost of the developing countries, and knowledge intensive research, the design can only stay in the developed countries and regions. In order to further reduce the cost, many brands focus on product development, design, production and delivery to the OEM manufacturers in developing countries, in order to maintain their competitive advantage.