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OEM, ODM & OBM in Chinese Audio Industry

Date:2016年6月13日 17:37

Resent years, OEM/ODM/OBM become popular in audio industry. Let us introduce some more details about OEM, ODM & OBM in audio industry.

OEM (Original Equipment Manufacturer) is a company that makes a part or subsystem that is used in another company's end product.[1] For example, if Acme Manufacturing Co. makes power cords that are used on IBM computers, Acme is an OEM. Generally, it is requested by some international companies since it can cut down the cost and improve the brand added-value.

ODM (Original Design Manufacture), audio original developer change or improve the exiting product based on the customer’s request or design a new product based on client’s need. And it is produced with customer’s brand like OEM do. Products are sold by customer. For example, some American audio brand, its products was produced by Taiwan manufacturer. And then, Taiwan manufacturer can produce another model by revising some details.

OBM (Original Brand Manufacture). Let us take A & B as 2 parties as sample. A create A brand, produce and sell products with A brand, that is OBM. A has its own request and ask B to design and manufacture the products, or A bring its own technology and design and ask B to produce, that is ODM. A likes B’s products, and ask B to produce with A’s brand, that is OEM. Someone say that acquire a brand, franchise to get a brand, all are OBM.

According to the above three kinds of sound production, some domestic manufacturers are doing simple audio production and processing, which are not really Chinese design. Generally speaking, made in China has been going through extensive manufacturing, haven’t think about how to achieve industrial upgrading or how to strengthen the self-brand awareness. Therefore, Chinese enterprises in terms of audio production, our focus is not a simple production, but focus on Chinese design, to create an internationally competitive products and to participate in international market competition.

To “made in China”, especially in some of professional audio products, home appliances, digital products etc, people are still skeptical for "made in China". Indeed, many people feel that in terms of quality for the same kinds of products abroad is concerned, there is a certain gap between Chinese-made products. In fact, Chinese enterprises have the ability to produce high-quality products, but that is the need for strict standards on the basis of implementation. The so-called strict criteria derived from market requirements and behavior of human responsibility. Current domestic audio market still belongs to the primary market, the technical parameters of the product is not much user understanding. Direct response to users are mainly in terms of price, but will not give the manufacturer feedback what the specific technical requirements at the user level. In such an environment quick success, the number of manufacturers will be practical to develop good products, so some manufacturers will only cut corners.                                                       

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