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Home » What You Need to Know About ODM in China?
POSTED ON June 19, 2021
In the previous post, we talked about OEM in China. Here, we will talk about another form of outsourced manufacturing known as Original Design Manufacturing or ODM.
ODM has a broader service scope compared to OEM. The sole responsibility of OEM is manufacturing new product as per the design and specifications provided by the client, ODMs also provide product development services. In some cases, they even provide full product lifecycle services. The actual scope of services may vary depending on the capabilities of the ODM.
With Chinese factories becoming more technically competent and efficient, foreign buyers prefer to enter into arrangements wherein the manufacturer does part or all of the design work. When manufacturing new product. the most common arrangement is the one in which the buyer provides the basic design concept and specifications and the commercial design work is undertaken by the manufacturer. So, the buyer just provides some basic drawings and specification sheet, and the manufacturer takes care of the rest.
It is a good idea to go for ODM when you have a great concept or product idea in mind but you do not have the technical capabilities or an in-house team to do the commercial design part. When you go to an ODM with a new product idea, they will help you create design and specifications based on your product idea. Sometimes, the ODM may have their own product line similar to yours and can simply customize their existing product as per your requirements. They will not only design and manufacture new product for you, but will also brand it with your name. So, to anyone else it would look like that you have manufactured the product yourself.
In fact, it is very common for importers to select an already-existing product design from a factory catalog, makesome small changes to it and sells it under their own brand name. Mostly, they make changes to colors, packaging, branding or small changes to functionality or components.
As with OEM, the advantages of ODM far outweigh the disadvantages. All you need is a reliable Chinese manufacturer who can bring your product idea to life. However, there are things that you need to be careful about when choosing the ODM approach for manufacturing new product.
The success of ODM products depends on how good your manufacturer is and how good a job he can do creating a unique product for you. It is best to hire services of a competent and professional Chinese sourcing agent, who can help you get the perfect product for your needs.