Tiếng Việt
한국어The two phrases OEM and ODM are both very familiar terms in the industrial manufacturing industry, including cosmetics production. OEM stands for Original Equipment Manufacturing, while ODM stands for Original Design Manufacturing. The two concepts are quite similar, so listeners are sometimes confused. Let’s differentiate these two concepts with Koviepartners.
OEM is often used to refer to cosmetic companies and cosmetic factories that perform cosmetic manufacturing work according to pre-set designs and specifications and sell products to other companies for distribution. In other words, the OEM company will produce “on behalf” of another company. The product is marketed under the brand of the company ordering the product.
ODM is a concept that refers to cosmetic companies and cosmetic factories responsible for designing and building products as required. In recent years, the number of ODM companies is increasing sharply worldwide. An ODM company often has many different partners, taking on a large part in the production process.
The advantage of OEM is that it helps partners receive products without having to build a new factory. Thereby, production costs can be reduced. However, these companies will have access to research results that customers are holding, so the issue of choosing a reliable manufacturer always needs to be top priority. Chinese and Korean manufacturing companies also often start from OEM first.
On the contrary, with ODM, you don’t have to worry much about technology theft. But products are made according to partners’ specifications, so sometimes it will cause difficulties when you start production. To avoid this, it’s best to always set a certain limit on the design.
At Koviepartners, with our Ferderma cosmetics factory in Korea achieving full ASEAN GMP certification, we always ensure quality in production stages and legal procedures for customers. Refer the ordering process on our website: http://koviepartnersvn.com/oem-odm/