What does OEM/ODM stand for?

As we all know, all walks of life in today's world have developed very mature and fast. The products of any industry can not be independently completed by the brand owners, including the mobile phones, computers, etc., used around us, the same is true in the cosmetics industry, because the industry is composed of multiple types of labor division and cooperation, each takes what he needs, so there is an industry called processing, skin care OEM/ODM is produced in such an industry development situation. So why is there a skincare OEM/ODM, and what does it mean? We start with the English word OEM, OEM is the abbreviation of Original Equipment Manufacture(original equipment manufacturer), it refers to a "OEM production" mode, its meaning is that the well-known brand operator is not their own production and processing of their own products. It is a cooperative way of authorizing others to produce and process by using the "key core formula technology" that they have mastered.

This is the literal meaning of OEM, since there is a skin care OEM, it will certainly have his advantages will be accepted by everyone, Xiaobian to talk to you about the advantages of skin care OEM.

1. Reduce costs

Any industrial development industry can survive in the tide of The Times, and naturally there is the economic law of survival of the fittest, so skincare OEM can certainly play a role in improving efficiency and reducing costs, because operators pay less money, but can produce more efficient products, make full use of the advantages of cooperation between various industries, and do not need to pay attention to the production process. As long as you care about your core formulation technology, reduce the risk and cost of investment, so as to obtain higher returns.

2. Increase product diversity

The market is changing very fast, and consumers' consumption concepts are constantly changing. For example, a large number of new products appear every year, so the brands of operators cannot remain unchanged. Operators need to optimize their cosmetics products with the revision of the market, so they need to constantly upgrade and improve their product formulations with the changes in market diversity. Through the OEM processing of cosmetics, we can fully call on various resources, constantly upgrade our product formula, and develop new products, so as to meet the needs of market development.

3, division of labor and cooperation, give full play to the advantages of each link

For cosmetic operators, there is no need to invest huge funds to build their own factories, let alone invite a group of cosmetic R & D personnel, or factory assembly line production workers, you only need to understand the tuyere of the market, which products sell well, give this sample to the factory, you can get the product you are satisfied with, very fast, direct, give full play to the resource advantages of all links, Achieve the result of 1+1>2.

4. Reduce the cost of mistakes

The market is constantly changing, people also make mistakes, any product development may not be able to get a good return, there is a trial and error cost, some cosmetics operators will take the way of skin care OEM, quickly test the market, whether can get a better return, good consumer feedback, and so on, through continuous trial and error adjustment, The final decision to produce the product in large quantities minimizes the cost of trial and error.

The above is the basic meaning of skin care OEM/ODM, Xiaobian divided into 2 steps to give you an analysis, the first step is to literally tell what is skin care OEM/ODM, literally what it means, the second step is from the skin care OEM/ODM competitive advantage to analyze why cosmetics operators need to use OEM processing. If your cosmetics are starting up, Xiaobian very recommend you use skin care OEM processing model, can let you test the market at the smallest cost, and then determine the future direction of their own products should go, if you do not understand the current development prospects of the cosmetics industry, you can also add Xiaobian wechat chat, Learn about the latest trends in the cosmetics market.