Navigating the world of manufacturing in China involves understanding key terms such as OEM, ODM, and OBM. Before choosing the right manufacturer and sourcing agent, it’s essential to grasp these concepts, particularly in the context of the garment industry. This article aims to shed light on the differences between OEM, ODM, and OBM and highlight the role of TTgarment as a prominent OEM garment provider in Vietnam.
Definition: OEM stands for Original Equipment Manufacturer. In this arrangement, manufacturers provide the manpower and equipment to develop a product based on components and parts designed by another company.
Example: A clothing brand seeking a factory to mass-produce their designs. The factory, as an OEM services provider, manufactures the clothing according to the provided specifications.
Definition: ODM, or Original Design Manufacturer, refers to a company capable of independently developing, designing, manufacturing, and selling products. These products can be sold individually by retailers.
Example: An ODM manufacturer for school bags creating unique designs that are rebranded by different companies.
Definition: OBM, or Original Brand Manufacturer, involves a company taking full control of the entire production process, including designing, engineering, research and development, supply chain, marketing, and sales.
Example: Motorola serves as a real-life example of an OBM production service, handling all aspects of production from design to marketing.
In summary, the distinctions between OEM, ODM, and OBM lie in the degree of control and involvement a company seeks in the manufacturing process. For those considering garment manufacturing in Vietnam, TTgarment emerges as a reliable OEM garment provider, offering a comprehensive range of services to meet your specific needs.