Relative to the buyer, the supply side is in a relatively passive position, however, the use of OEM is still profitable.
1 enter the international market and participate in international competition
Domestic home appliances and other industries increasingly fierce competition, the market tends to saturation, some domestic manufacturers in order to develop the market, and to do OEM for foreign brands. Enhance the global awareness of the enterprise.
2 scale production and reduce costs
There is a general economic effect in modern production, that is, the trend of the unit cost decline with the expansion of the scale of output.. This may come from the deepening of the specialization of the division of labor, fixed costs of apportionment. If the enterprise itself exists in the situation of overcapacity, the effect of the cost will be more obvious.. Participation in OEM supply, means the expansion of the output scale, not only increases the product's market, but also reduces the cost.

ODM and OEM, the main difference is that the latter is by the entrusting party puts forward the design scheme of products -- regardless of the overall design is completed by who -- and the entrusted party shall not be provided by third parties using the design of the products; while the former from design to production by producers themselves, in product molding OEM side bought. The production of whether you can produce the same product as the third party, depends on whether the design of OEM buyout. OEM products for brand manufacturers tailor-made, production can only use the brand name, absolutely not crown on the name of the producers themselves then produce. While ODM is to look at the brand enterprises have not bought the copyright. If there is no, the manufacturer has the right to organize the production, as long as the design of the Enterprise Inc can not be identified. Plainly, OEM and ODM different point lies in the core of product exactly who is entitled to intellectual property rights, if it is entitled to the entrusting party intellectual property rights, that is the OEM is commonly known as the "OEM"; and if it is the producer of the overall design, that is the ODM, commonly known as "OEM".