An OEM (Original Equipment Manufacturer) is a company that manufactures products which are to be purchased by a second company and retailed under the brand of that second company.
This allows the purchaser to concentrate on their core strengths of sales, marketing and sometimes concept design and the OEM manufacturer to complement those strengths by bring their own expertise to the table. It’s also a great way for companies that want branded products to avoid major investment in plant and additional workforce, including expensive engineers and project managers.
This is a very common arrangement, particularly in the consumer digital electronics market place. As an example, there are only four remaining hard-drive manufacturers (and if current merger plans are approved, there may be only three or even two) but many different hard-drive brands on the market, and that doesn’t include all the incidences of a hard-drive being included as part of another device and sold under yet another brand name.
When would I need an OEM Manufacturer?
There are a many reasons for engaging the services of an OEM manufacturing company but some of the more common ones are:
SZCEIT are experts at helping companies outsource their OEM manufacturing in China, getting the right results every time to give you freedom to manage your core business and the certainty of quality products at the right price every time.