OEM and ODM difference

OEM (original equipment manufacturer)

The original manufacturer of a component or subcomponent. A company that sells products under its own label.

ODM (original design manufacturer)

A company that manufactures a product that is finally offered for sale by another company.

The major distinction among OEM and ODM is that the first is designed by the customer to design the product, regardless of who has finished the overall design, and the customer will not provide the product with the design to a third party. The latter is completed by the manufacturer from design to production, after the product is molded, the label will buy it. Whether the manufacturer can produce the same products for third parties depends on whether the label buys the design scheme.

OEM products are manufactured for brand manufacturers, and only the brand name can be used after production, which can not be done by the name of the manufacturer. The ODM depends on whether the brand company acquires the copyright of the product. Otherwise, manufacturers have the right to organize their own production, as long as there is none corporate design. In short, difference between OEM and ODM, the core is the product that enjoys intellectual property rights, when customers enjoy the product of intellectual property rights, it is OEM, also known as the “contract”; If it is the general design of the manufacturer, it is the ODM, commonly known as “sticker”.