What Are OEM, ODM And OBM?

Three common models of manufacturing: OEM, ODM and OBM
In the manufacturing field, companies commonly use three models to produce goods. The most common models are OEM, ODM and OBM. So what exactly are these three modes and what are their differences? After understanding these, you can better choose the appropriate mode for your product.

OEM is the abbreviation of Original Equipment Manufacture, which means that a factory produces products and product accessories for a brand according to its requirements. The brand does not directly produce products, but uses the key core technologies it has mastered to design and develop new products and control sales channels.
To put it simply, the brand in the OEM owns the intellectual property and core technology of the product. In order to save costs, it entrusts another party to process and produce it. The manufacturer only plays a role in processing, manufacturing and production. Apple is one Great example.

ODM is the abbreviation of Original Design Manufacture. It means that after a manufacturer designs a certain product, it is favored by other companies and requires the latter's brand name to be manufactured, or the design is slightly modified to be produced. The manufacturer responsible for design and manufacturing is called ODM, and the products produced are ODM products. The intellectual property rights of ODM products are owned by the ODM manufacturer. Many computer manufacturers are ODM factories, which is why the appearance of many computers of different brands is extremely similar except for the brand.

OBM is the abbreviation of Original Brand Manufacture. It requires enterprises to register their own trademarks to develop markets, create their own brands while giving full play to their design and manufacturing advantages, be responsible for the design, development, production, and sales of products, and master core technologies. All product intellectual property rights are The company owns it. OBM is a very challenging model for manufacturers. Innovation capabilities, manufacturing capabilities, and sales capabilities are all big problems. The capital and manpower required to invest are very large, which is very difficult for some small manufacturers. It is also difficult for some big brands to save costs. But this is a model that can ensure product quality, product pricing and after-sales service. Tesla adopts this model, and it is also this model that makes Tesla almost the only one that has not experienced supply chain interruptions during the global epidemic. Automobile manufacturers.

That's it in a nutshell：

OBM: A design, A production, A brand, A sales = factory designs, produces and sells itself (Tesla)
ODM: Design by B, production by B, brand A, sales by A == commonly known as "OEM", which means products from a joint factory and someone else's brand (ASRocK)
OEM: A design, B production, A brand, A sales == OEM, generation production, other people's technology and brand, the factory only produces (Apple)

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