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ODM & OEM
ODM & OEM
23 September 2022
Launch New Products with ODM or OEM 
by Edith

It is always important for buyers to offer their consumers new and trendy products. There are, however, many challenges associated with product development.  

In order to produce a product, you need to conduct research, conceptualize designs, do sampling, pay for molds, make countless revisions and so on. The process can be very time-consuming and expensive at the same time.  

Luckily, there is a strategy to provide convenient and fast options to buyers.  

It is through ODM and OEM.  

ODM vs OEM  

You might have heard of these terms before. And probably most of the products you see now are a result of ODM or OEM developments.  

Now what are these terms and what’s the difference between the two?  

ODM – Original Design Manufacturing  

Let’s start with ODM or Original Design Manufacturing. ODM is also referred to as “private labelling”.  It is when a manufacturer develops a product and offers this product to buyers to sell as their own.  

Buyers can then make a few small changes such as product colors and graphics, packaging, and branding.  But the overall design and functionality will stay as is.  

ODM

Normally manufacturers offering ODM have an array of already existing product designs that they developed over time. Buyers can easily select from these items, make a few small changes, and then finally have a ready-to-sell item.  

ODM is the easiest and fastest way buyers can offer new products to consumers.  

Benefits of ODM:  

  1. Save Time  

Since the product has already been developed by the manufacturer, you no longer have to go through the long process of research, development, sampling, and so on.  

You can just use existing product shape without making new molds and provide graphic designs that can make the product look new and unique. 

  1. Save Cost  

Again, since the product is already existing therefore you dodged the high costs of development such as designing, sampling, or creating a mold for unique-shaped items.  

You only need to think of the minimal costs that come from sampling based on the style or branding design that you want. 

  1. Convenience  

Last but not least, ODM can help you launch new product concepts in the easiest way and cost-effective way.  

You don’t have to go through all the processes of creating products from scratch.  

All you need to do is find the perfect ODM manufacturer with many good product concepts that you can select from. 

OEM – Original Equipment Manufacturing  

OEM or Original Equipment Manufacturer on the other hand refers to selecting existing products from the manufacturer and customizing the overall form by adding or changing some product functions.  

It can also be that buyers have their own brand idea and ask the manufacturer to create this specific product. 

OEM

With OEM, you can have more control over designing and customizing, to create your very own unique product.  

Though OEM can take longer compared to ODM, buyers on the other hand can have the freedom to add, remove, or customize parts based on their requirements.  

They can also change some materials to make appearance look better or to help achieve a specific budget.  

Which is better to do? ODM or OEM? 

Now you ask, which strategy should you do to sell new and unique items for consumers? 

The answer actually depends on you! 

If you want to offer new items in a fast, convenient, and cost-effective way, then the best option is to do ODM. 

However, if you want to create unique products, have total control over product design and specifications, then you probably want OEM. 

In the end, what matters most is for you to give your consumers products that will give higher sales in return. Also, you need to find the right supplier who can help you with your ODM or OEM service needs.