Benefits of OEM processing
For companies with well-known brands. This approach is a maximization strategy. The earliest OEM in the world in pursuit of profit comes from the apparel industry. In order to reduce costs and improve product competitiveness, many well-known apparel companies in developed countries have gradually expanded their production bases overseas, commissioned local manufacturers to manufacture them, and sold them on the market under their own names. Because it reduces the occupation of production capital of the entrusted enterprise, it reduces the risk of expanding the market. Compared with self-promotion, mergers, joint ventures, and mergers, OEM commissioned processing takes the least amount of money for brand enterprises. Increase the speed with which brand companies enter the market with new products. "OEM" is a good choice to quickly occupy the market in the short term. It is a good choice to effectively reduce risks without losing the market.
Many world-class home appliance manufacturers have transformed their business model from mass production to mass customization. Through OEM, you can quickly complete the global coverage of the company's brand, but also reduce investment costs and investment risks.