OEM goods. What is the difference between a boxed license and an OEM version? Accepted world markings and their designations

First, let's understand the terms..

ODM (Original Design Manufacturer) refers to the contract manufacturing of certain products with a unique design or special characteristics. That is, the development is carried out by you, and the necessary preparation for the introduction of production and the production of the goods itself is carried out by a Chinese contractor.

OEM (Original Equipment Manufacture) - contract manufacturing of products that already exist under your brand name. In a word, this is a copy of existing products in China.

Consider the pros and cons of each option.

Let's start with ODM production. The undoubted advantage is your unique design, which gives you competitive advantage on the market.

1) Resources

Your company must have the necessary resources: a staff of designers, technologists, an experimental workshop.

2) Control over production

In order for your design solutions to be carried out exactly as planned, vigilant control in production is necessary. And the point here is not only that Chinese contractors do not want to fulfill the order exactly according to your wishes. Different countries have different requirements and features. This should be taken into account when working with other countries.

For ODM production, you will need either your own staff in China, or a bona fide agent, preferably a native of your own country, so that you speak the same language with him.

ODM production takes much longer than OEM. Development of patterns, accessories, confirmation of all details of the order. In my experience, this is one of the most problematic moments in working with Russian customers (as everyone knows, we harness for a long time, but we drive fast). The speed of reaction and the speed of information transfer between the factory and your office will also be very important here.

Summarizing the above, it should be added that ODM production is a cooperation option for those who already have “financial muscles” and some experience in the field of production.

OEM production.

1) Speed. Models are already in the factory, launching into production does not take much time.

2) Economy. You do not spend money on the development and implementation of models in production.

1) Your product is not unique, and you are lucky if the factory sells the same models in different countries. But more often there is a situation when the manufacturer is focused on any one country. If you are a pretty good customer from Russia, then this encourages the manufacturer to look for even more customers from Russia. In their opinion, since the product is well suited for this particular market, therefore, the chance that someone else in Russia will like it is high.

2) The second minus is directly related to the first. If a product is not focused on a specific market, then it is usually not adapted for this market. I'm talking about sizes, design and other details, for example, the thickness of the synthetic winterizer in winter jackets.

To summarize, what is still more profitable: OEM or ODM in China?

In my opinion, both formats are beneficial in China. You need to look at the concept of your business and understand what goal you are trying to achieve.

If the goal is to build your own strong brand, then, of course, ODM production is a strategically right choice. If the goal is to simply produce clothes (and as cheaply as possible), OEM production will be more convenient. Especially in times of crisis.

Sincerely, Tatyana Sherstneva

Director of Textile-profi co, ltd

mobile phone +86 185 597723 97

If you bought software for your computer on the Internet, then most likely you might have already heard about the abbreviation OEM.

On the English language it stands for Original Equipment Manufacturer (OEM-original equipment manufacturer) and means that products bearing this abbreviation are sold cheaper than regular retail products.

You may be wondering: why should you buy OEM products and will this lead to some trouble later on?

Indeed, the point is that these products are different from the usual retail goods, and differences are known to be detrimental to the further use of the product.

OEM - what does it mean and in general, is it legal?

As mentioned above, OEM means that the product belongs to the original equipment manufacturer. However, in this case, the abbreviation does not tell us exactly who is selling and whether it is exactly intended for sale. Typically, OEM software and hardware is shipped specifically for distribution to companies that build systems. These companies are the original equipment manufacturers. And that is why OEM products in most situations are sold as kits in boxes or packages, and not in a beautiful retail box. These items will never hit the shelves. retail stores.

It's true. Most retail stores never sell OEM products. Unlike them, online stores don't care about the appearance of the packaging, so they are more than happy to take such products and sell them to their customers. After all, online stores know that customers are primarily attracted by the low price of the product, and not its wrapper.

Some users are wondering if the software is considered OEM and if it is legal to use it. Yes, it is completely legal to use such products. However, there are some restrictions that you assume when buying such a product.

OEM software

Software is not as common as hardware, but there are popular products that are extremely common in OEM format. is the best example, but there are OEM versions of security software, system utilities, and productivity software.

When you buy such software, you are usually given only the program itself and a license key. Sometimes you may be given a small plastic container with a few logos and documentation, but that's about it.

Usually, the lack of paperwork is part of the deal. Indeed, most OEM softwareprovided without technical support. Generally. It is provided by those who create the system. If you are the person who assembles the computer, you must provide technical support to the buyer yourself.

Almost always, OEM software is only licensed for one system, which means you won't be able to install it on another computer. In theory, this means that The OEM version of Windows is tied to the specific computer on which it is installed, but Microsoft is sometimes lenient on this issue. Therefore, reactivating Windows is possible with a simple call to customer service.

Of course, Microsoft is not obligated to do this, and other companies may be more strict about it. You assume this risk when you purchase the OEM version. Yes, this version costs a little less, but you will have to buy new software if you suddenly decide to replace the computer.

Hardware

OEM hardware cannot be downloaded from the internet. It is purchased at the store and usually costs a few dollars less standard retail products, although otherwise it has the same features and performance.

Nonetheless, OEM hardware does not come with additional components, sometimes even with those that are vital for the operation of the device. Computer OEM processors in such cases do not come with coolers. OEM video cards and hard drives are shipped without any adapters or cables needed to connect them to your computer.

There may also be a restriction on technical support for the software. You may experience difficulties with customer support if you have questions regarding the warranty, as sometimes it can be changed or reduced (but not always).

Hard drives, optical drives, and some PCI expansion cards are the most common component options that are supplied as OEM products. Other products may come across, but their number is rather limited.

Should I buy OEM versions?

OEM software is risky but potentially right choice . In this format, Windows 7 Home Premium costs only $99, while the retail version costs $179.99. Really big difference. Of course, there may be a situation where you run into a problem, but let's be honest, you pay only half the retail price. Personally, I have been buying OEM versions of operating systems for computers that I have built myself for many years, and I will continue to do so in the future. But here it must be borne in mind that I am not one of those people who call technical support at the first problem that appears.

With other software, things are about the same. OEM antivirus software usually costs 25% - 50% cheaper than standard versions. Some utilities have similar discounts. The only catch is only the public availability of OEM versions. Most developers only offer retail versions of their products.

With hardware, you can either save or overpay. Sometimes OEM versions of equipment cost a few dollars less, but it also happens that you need to buy additional parts for the device, which reduces the whole benefit to almost nothing.

Finally, there are times when OEM hardware is more expensive than retail hardware.

Such situations occur when the equipment is at the very end of its life cycle.

Spare parts stores in these cases simply inflate the price and offer OEM products at the same and higher price than retail ones.

OEM versions of software are absolutely legal, and work just like the retail versions (with the exception of some limitations and lack of add-ons), but these circumstances do not at all guarantee a great purchase.

Luckily, most shops that sell OEM versions also sell full retail versions. Therefore, before making your choice, compare prices for different versions of the same product.

How often, getting acquainted with the assortment of a particular store and flipping through the price lists trade organizations that offer different products and accessories, we are surprised to stumble upon the OEM or RET mark and compare identical product descriptions with very different prices for them.

Why does this happen, how do seemingly identical products differ, and is the choice of a more expensive one justified? Let's try to understand what the delivery type RET means and how it differs from the OEM type.

Accepted world markings and their designations

The designation OEM (Original equipment manufacturer, i.e. original equipment manufacturer) in the global community means the actual assembly of the product by a specialized company from components produced by third-party companies. In today's conditions of the domestic market, this abbreviation has become a symbol of the minimum factory configuration, only theoretically intended for product assemblers and their subsequent sale. Although in Russian trading houses products with a similar marking are adjacent in showcases to goods marked with the RET sign (Retail - retail sales). This abbreviation means exactly the product, ready for retail trade and, accordingly, for final use. Note that in many countries, only products whose form is listed as delivery type RET are allowed for retail sale.

Features of the domestic market

The Russian market is not characterized by scrupulousness of foreign retailers. Therefore, it is possible to compare both variants of the product in terms of the benefits of a potential buyer. Let's try to find out the difference between OEM and RET delivery types.

Consider both of these options, for example, when buying electronics or components for it. The OEM supply is extremely modest and consists of an antistatic package, the product itself, and an envelope with media (disk, driver, etc.) if software is provided. The delivery of RET is noticeably more generous. Here you must have a strong colorful box, accompanying software, instructions, a set of accessories - cables, adapters, depending on the type of product. There is a rule: the presence of a packing box implies the type of delivery RET, and the absence of any necessary complementary items in the kit means the manufacturer is dishonest.

Cost difference

The price set by the manufacturer for the delivery type RET and OEM is always different. Everyone is familiar with the situation when the price tags for one product in the window are strikingly different from each other. A product labeled RET is, by definition, more expensive, and it turns out that the consumer pays for the box and, in a sense, for ease of use, because the manufacturer attracts the attention of a potential client with additional bonuses and colorful packaging. It is this circumstance that is extremely important for buyers who are not able or do not want to overpay for an additional (by the way, not always necessary for them) package.

Warranty

Usually, manufacturers do not provide OEM supplies or they do, putting forward certain and rather stringent conditions.

As a rule, they shift the responsibility to assemblers and trading companies. If there is software for the product technical support developers it turns out, but often significant restrictions are contained in and they are valid only for one specific installation method. Transferring OEM licenses as a non-retail product is prohibited in the vast majority of cases. The RET type of delivery is much more loyal to the buyer in this regard, guaranteeing the possibility of free service, technical support and fulfillment of obligations to return the product if necessary.

It should also be taken into account that with OEM delivery, the goods may be damaged during transportation, since the factory packaging is not durable. It is worth taking into account modern Russian realities, where OEMs are often given out for products that were previously rejected and repaired.

Finally

So, the difference between RET and OEM supply is as follows:

• OEM is not intended for the end user, but is launched by domestic retailers;
• OEM is noticeably (20-40%) cheaper than RET products;
• RET supplies are covered by the manufacturer's warranty, the consumer is provided with favorable license conditions;
• RET delivery products are protected by strong packaging, supplemented with the necessary accessories, instructions, bonuses;
• the theoretical possibility of detecting defective or damaged goods in OEM deliveries is much higher.

We have listed the main differences between the supply of goods to Russian market and found out what the delivery type RET means, as well as OEM. Each of them has its own advantages and disadvantages. You have to choose based on your preferences and capabilities.

Hello everyone, today I will tell you how OEM delivery differs from Retail delivery. Studying the prices of stores that mainly sell computer components and software, we all come across a postscript after completely identical names - OEM or RTL (Retail). And prices in these lines can vary significantly. What do you have to pay or sacrifice? Let's try to figure it out.

OEM (Original equipment manufacturer) in the official version - the designation by the manufacturer of the fact of assembling the product on the basis of third-party projects and components created by other companies. In fact, for the Russian market, the OEM abbreviation symbolizes the minimum configuration, intended in theory for product assemblers and further sales. As a rule, in Russian retail chains OEM products are on display next to RTL.

Retail- in translation from English it is “retail trade”. The abbreviation RTL means that the product is completely ready for use by the end user. In many countries, only this form is allowed for sale in retail stores. outlets.

Since our market is not so scrupulous, let's look at both of these options in order to assess the benefits of the buyer, that is, you and me. The OEM supply is very modest: an antistatic package, if we are talking about components or electronics (maximum - added a driver disk), or, in the case of software, paper envelope with the media (the same optical disc, most often). RTL delivery is more generous, although generosity is a relative term. But, at a minimum, there is a box, instructions, a minimum set of accessories such as cables, bolts and adapters, depending on the type of product. If the product in the box is no longer OEM, so the absence of something necessary and important in the kit is on the manufacturer’s conscience.

The manufacturer's price for OEM and RTL is set differently, so we also see price tags on the windows, sometimes significantly different from each other. Thus, we pay for the box and a certain kind of ease of use. RTL is more expensive by default.

As a rule, the manufacturer does not give its warranty for OEM deliveries or gives it for special conditions. These obligations are shifted to the shoulders of collectors and trade organizations. As for the software, technical support is provided by the developer, but license agreements are often valid only for a single installation option. Transferring OEM licenses is prohibited in most cases. Retail deliveries in this regard are much more loyal to the consumer.

It may also be significant for the end user that the OEM delivery, due to the lack of strong packaging, may more often be damaged due to the fault of the carrier. In addition, it is worth considering Russian realities, where OEM is very often given out as a reject or repaired in the service.

Outcome

1. OEM is always cheaper, the price difference can be up to 40%.
2. OEM is not intended for the end user, but this is ignored in the Russian market.
3. RTL is significantly richer in equipment.
4. RTL comes with a manufacturer's warranty and favorable license terms.
5. Theoretically, the possibility of marriage in the supply of OEM is higher.

These are the differences between OEM and Retail.

OEM-ohm today it is customary to call such a form industrial cooperation, in which the manufacturing company manufactures a product, which will then be sold under the trademark of another brand owner company.

In the global markets feature, the reasons for the special role of OEMs for modern market digital players. AT general view mechanism is the following.

On the one hand, the low technological cost of entry into the market leads to the emergence of a huge number of manufacturing companies. Branding as such for them, in principle, is absent. On the other hand, the traditional leaders of the portable audio market, the owners of strong brands, refrained from serious expansion in the MP3 direction for a long time. As a result, the market has become overheated in manufacturing amid a vacuum in branding. Since nature abhors emptiness, countless companies rushed there, using existing trademarks or creating new ones. These firms do not have any production base, at least in the MP3 direction, the traditional area of ​​activity for them, as a rule, is trade and distribution. Wanting to offer the consumer a product under their own brand, they turn to the capacities of manufacturing companies that do not have marketing resources to create and maintain brands. In recent years, these processes have been going on with ever-increasing intensity. As a result, the number of trademarks created as a result of the union of an OEM company and a brand owner company is today comparable to the number of "honest" brands with their own production.

General schemeMP3-market. Global companies, having both production facilities and a recognizable brand, cannot or do not want to satisfy all demand. Companies with manufacturing facilities have production capability satisfy demand, but do not have the opportunity to enter the consumer market directly. There is a "black" hole in the field of branding, attracting everyone who wants to make money in the market.

The anatomy of such "binomial" trademarks will be the task of today's material.

History of the term

Let's make a reservation that the use of the word "OEM" in its current meaning is, in principle, illiterate. But the rate of development of this phenomenon has greatly outstripped the rate of development of the conceptual apparatus for it. Therefore, there is a lot of confusion in the terminology, there is no agreement on the use of certain designations. However, the words OEM, OEM, s-OEM are already in wide circulation, so we will use them for now.

OEM is an abbreviation for the English Original Equipment Manufacturer (-ing), that is, the manufacturer (production) of primary equipment. The term was used in the automotive industry to refer to the manufacturer of individual components of a car that manufactures them for the company that produces the final product. That is, an OEM company produces this or that equipment, which will then be included by the buyer company in the finished product - a car and will be sold under the trademark of this buyer company. Such a company-buyer is called a Value added reseller (VAR), that is, a seller selling goods with added value (value). Such “added value / value” in this case is both assembly and branding.

In the computer industry, OEM has become a very popular form of cooperation, all computers today are assembled from assemblies made by OEM companies. It is from here that the term "OEM" went to the masses. Individual components - computer components - manufactured as part of OEM cooperation began to enter the retail market, where they gained popularity at their significantly lower price. The concept of “OEM packaging” has become firmly established in the vocabulary of an “advanced computer engineer”.

And what will happen if the OEM-manufacturer begins to manufacture not only individual components, but the entire product as a whole? With the development of manufacturing facilities in Southeast Asia, VAR companies have been asking themselves this question more and more often. The transfer of the entire production process, from the purchase of raw materials to assembly, into "foreign" hands has become an absolutely logical continuation of the trends of specialization and outsourcing. Everyone should do what they do best. In the field of production today, better means cheaper. Therefore, the migration of production processes to regions with low production costs was lightning fast and unstoppable.

Here, previously clear and understandable, the term “OEM” began to rapidly “become cloudy” and “obscure”, acquire new meanings and varieties.

The fact is that modern production is a complex and multi-stage process. Schematically, it can be divided into next steps:

Marketing Analysis customer needs

New product idea generation

Formulation of the general terms of reference

Development of design and technical scheme (may go in a different order), creation of a prototype

Testing, working on bugs, creating a prototype suitable for mass production

Purchase of raw materials, assemblies, components

direct production process

Product quality control, after-sales service

This chain does not take into account the R&D required to "keep fit" the R&D department so it can come up with decent ideas and concepts.

Any link in this chain can be outsourced, i.e. into "foreign hands". For example, an OEM can, in addition to production, purchase raw materials and equipment, as well as “bring” a customer’s prototype to a product suitable for mass production. And maybe in addition to develop technical scheme devices according to customer specifications. And so on. As a result, the number possible forms Value added reseller's cooperation with the OEM is very strong. There is no official classification of them, this has given rise to many related terms such as ODM, CM, OIM, etc. There is no agreement on the use of these designations. Let's try to give them an approximate classification.

CM - Contract Manufacturing, contract manufacturing

This is the lowest degree of involvement of the manufacturing company in the process. VAR independently develops a prototype for mass production, independently purchases raw materials and components, and carries out quality control. The manufacturer only provides production space and labor. The influence of the brand-owning company on the production process is maximum. It can be reasonably said about the manufactured products that it has the quality of the VAR-company brand. This scheme is available either for large companies, with experience in production, or for start-ups, initially created under this scheme, with personnel with experience in organizing and controlling production, technical developments. So, most Korean companies use this particular scheme.

Example. Korean companyMaycomnever had its own production facilities. Until 2005, all of its products, incl.MP3-players and voice recorders were produced under contract at Korean factories. Since 2005, production, in order to reduce costs, has been transferred to China, at the facilities of Shenzhen Gaoxinqi Technology, but it has remained under contract. That is, Shenzhen Gaoxinqi Technology simply providesMaycomspace, equipment and labor, and the purchase of components is carried out according to the list and at the expense ofMaycom.This, however, does not prevent the company -CM- the manufacturer sometimes demonstrate products fromMaycomunder its logo - however, not for sale, but only to demonstrate its capabilities as a contract manufacturer.

Pictured under contractM- birdsXZ-22

ODM - Original Device Manufacturing, that is, the production of primary products

With this form of cooperation, the involvement of the manufacturer is greater - he independently purchases components and raw materials, independently carries out primary quality control. However, product development remains in the hands of the VAR company. Two kinds of ODM cooperation should be mentioned.

In the first case, the VAR company independently creates a prototype suitable for mass production.

In the second, she only gives the terms of reference and formulates the design requirements. The development of the concept is the responsibility of the manufacturer.

In the first case, the participation of the brand-owning company is no less than in contract manufacturing, and the final product, accordingly, has all the characteristics of a "branded" one.

But in the second case it is already more complex issue. Of course, a VAR company is unlikely to let a low-quality, unusable scheme pass onto the conveyor. But is it possible to say about a product, the fundamental device of which was developed by the engineers of company X, that it is a product of company Y? It is difficult to give a definite answer here.

The first type of ODM cooperation is typical for many large companies, such as Apple, Sony. As a rule, these are companies that have both a good marketing potential and a high level of engineering base in the direction.

Example. Perhaps the most famous exampleVAR-companies that preferODMscheme -Applecomputers. her poolODM-manufacturers is quite large and includes such large Taiwanese companies asAsustek, foxconn, Inventec. So, for production 1GShuffleansweredAsustek, 1 Gnano - foxconn, iPod-foxconn, Inventec.

Companiesfoxconnfailed to remain in the shadows: recently there have been a succession of publications accusing her of unbearable working conditions for workers in a factory manufacturingiPod(so-callediPod- city) – photo www.mailonsunday.co.uk

The second type is preferable if the company has a good marketing apparatus and an experienced industrial design department, but does not want to create a separate engineering and design department for a narrow area, such as MP3 players. According to some reports, such a scheme is followed, for example, by Philips, although this information may not be accurate.

Example. Until recently the companyPhilipsowned the most powerful semiconductor production and, among other things, produced platforms for digital players. These platforms were highly respected as they were used by leading manufacturersMP3 players -iriverandMPIO. Surprisingly,MP3 players sold under the brand namePhilipsthese platforms themselves were not used, but were built on the basis of solutions fromSigmatelorportalPlayer. This gives the most serious reasons to suspect that the development of these devices is not carried out byPhilips, and the Singaporean manufacturing companyEastech, and the Dutch corporation only gives a general technical task.

Chips from the formerPhilipscan be found in Chinese products includingBBK, Meizu, but not in players sold under the brand namePhilips(a photoimp3. net)

Often, VAR companies outsource manufacturing processes piecemeal. So, almost all Korean companies, with the exception of MPIO, order the design of their products from third-party companies, this is the secret of a good design of their devices. This type of cooperation goes well with CM or ODM - only two narrow specialized areas remain in the hands of the VAR company: branding and engineering.

Scheme of the division of labor in the production of a typical Korean digital player

Example. Korean companyCowon- iAudiouses the services of a Korean design studioDadamdesign. This firm creates designs for models fromCowon, starting from its very first model, whileCowon- iAudio- far from the only clientDadam, you can name, for example, a developerPMPKoreanMaxian, design itMP-2220 also designedDadam. One can even see common motives iniAudio5 andMP-2220, for example, covering the front panel with a thin layer of transparent plastic.

iAudio 5on the sitedadam design

OEM

In addition to referring to the phenomenon as a whole, the term OEM is also used in a narrower sense, to refer to one of its forms. If in the previous two forms, the VAR company actively participated in product development, then the scheme, called OEM, implies that the manufacturer independently carries out the entire chain of development and production processes, from analyzing customer needs to quality control. The only thing left for the VAR-company is marketing - branding, distribution, advertising. Her participation in the production is purely symbolic. Of course, one can say that a VAR-company with a good reputation will not sell under its brand a product that does not reach a certain level in terms of consumer characteristics. But if you approach it formally, then the product sold under the trademark of the brand owner company in this case cannot be called its product - it was both developed and produced by another company. With this form of cooperation, the entrance ticket for a VAR company is very cheap: all it needs to do to enter the market is come up with a concept trademark and find a supplier. It is not surprising that brands of this type, in quantitative terms, occupy a significant part of the market today.

Example. Companyixingis the result of the cooperation of the KoreanTechnoniaInc., in charge of R&D and Yusan Industries LTD, in charge of production. Their latest product is a familyTM- S: TM- S1, TM- S2 andTM- S3, created "based on"iPodnano. Three types of hull design were prudently developed - “in reserve”. Due to the weakness of the marketing department and the company's unpreparedness to search for foreign buyers, a partner was found - the companySafa. The latter, although it had many years of experience in the independent development of digital players, did not disdain a successful design. So the model was bornSafaSS110. But enterprising employeesSafadid not stop there and resold the model of the GermanMaxfield. So appearedMaxSin, OEMfromOEM-a. And for the third, least successful design option, the search for a buyer is still ongoing.

"Faces"TM- S

OEM brand types

There are several types of OEM brands in the digital player market.

First type- companies from other, often completely different, markets, which have their own production and history there, but decided to add MP3 players to their assortment as an assortment product. This can be done for promotional purposes, the players here act as souvenirs, gifts.

Example. companyDisneycannot be blamed for having a long tradition in the design and manufacture of portable audio equipment. Nonetheless,MP3-players under this brand are present on the market, in particular,MP4 playerMixMax. Moreover, in this case, there is not a “pure”OEM, but ratherODM, you can tell by the characteristic shape of the navigation key.

DisneyMixMax

There may also be a desire to extract additional value from your brand. The number of such companies is incalculable, it seems that only a lazy brand has not yet acquired "its own" MP3 player. Moreover, most of these companies have a well-deserved and weighty reputation, products under their trademarks are usually taken seriously, with interest. Hence, situations arise when the media pays a fair amount of attention to an OEM-purchased, ordinary, uninteresting device from a “leading manufacturer”, ignoring a truly interesting, original development of a little-known company.

Example. Once in Europe, Americans are surprised to learn that the companyTeacturns out to "produce"MP3 players. And when they get to Korea or China after that, they are even more surprised to see these models under completely different names.

TEACMP-400, akaMuroMP-200. As the name suggests, Europeans rate this model 200 points higher than Koreans.

However, sometimes such cooperation makes a manufacturer become really interested in the MP3 market and later come up with independent developments on it.

Example. CompanySandiskstarted herMP3 business withOEM- cooperation with a Korean companyCenix. However, seeing the potential of the market, she quickly switched toODMscheme, having switched to the independent development of devices, and is now rapidly moving towards becoming a global player inMP3-market.

SanDisk Digital Audio PlayerhesameCenix MP-480

A key feature of this type is that it has its own production facilities, or at least its own research and development department, focused, however, not on players, but on other products or areas of activity.

Second type can be called zombie brands. These are respected brands, often with a long history of in-house development. But at some stage they completely curtailed production, and most often they changed the owner. Now only the logo remains of them, under which products purchased under the OEM scheme are sold. The new owners of the trademark, of course, do not tell the end buyer anything about this, but on the contrary, they shout loudly about the centuries-old traditions of quality, etc. This is the most dishonest OEM scheme ever, bordering on a scam. In most cases, brand owners want to get the most out of them, and as a result, players are only part of a broad product umbrella of dissimilar products.

Example 1. CompanyAkaias a manufacturer of high-end audio equipment from Japan, passed away quite a long time ago. However, postmortem, she continues to produce various products, includingMP3 players that have a distinctly Chinese "tinge".

Akai MP-5600EDhesameLuxpro EZShare

Example 2. Companympmanwas an inventorMP3 player. Today, under its trademark, low-quality Chinese-made products are sold on the European market. At the same time, from the slogan "InventorsMP3-player" brand owners do not refuse.

Third type– new brands created specifically for OEM projects. Unlike the first two types, such trademarks cannot enjoy the reputation and fame received for past merits, their owners have to start everything from scratch. These brands can be called the most honest, their reputation and success are completely determined by a balanced selection of suppliers, competent marketing policy. There are also umbrella brands, where MP3 players are just one of the items, and specialized MP3 brands. In most countries, such brands have managed to achieve tangible success.

Example. CompanyTrekstorhas achieved tangible success in Germany, selling a wide range of Chinese and Korean devices under its own brand. Reasonable selection of the product line, original and intensive marketing made the brandTrekstora significant player, both in Germany and in a number of Eastern European countries.

"The most expensiveMP3 player in the world"TrekstorOrganixGold, he isi- bead400 in another case

Alternative classifications

This classification can be criticized. The fact is that there is no single agreement on the use of the terms OEM and ODM. They are very often interchanged, and OEM refers to what we have described as ODM and vice versa. It is difficult to understand how to use all this terminology correctly, because. these abbreviations have long been torn off from their original meaning and healed own life. We use the most popular option, as understood by ordinary Asian companies: OEM - "we put your trademark on our finished product", and ODM - "we will do what you want." Although for many of them the phrase “OEM / ODM welcome (welcome)” has already turned into a meaningless spell to attract customers, the meaning of which they do not think about.

In other variants of terminology, there is the concept of OIM - Original Idea Manufacturing, the production of the primary idea. A somewhat awkward term to separate the independent development of product ideas and proposals. ready-made solutions from ODM production, i.e. production according to the requirements of the customer company. In principle, OIM can be called a synonym for OEM in the sense in which it was given above.

	Option 1	Option 2
The manufacturer carries out the entire production chain from idea generation to product quality control	OEM (Original Equipment Manufacturing)	OIM (Original Idea Manufacturing)
VAR-company gives a general terms of reference, the manufacturer develops the product design and implements manufacturing process		ODM (Original Device Manufacturing)
VAR-company fully develops the design of the product, the manufacturer is responsible only directly for the production process	ODM (Original Device Manufacturing)	OEM (Original Equipment Manufacturing) or EMS (Electronic Manufacturing Services)

Classification options for types of cooperation between manufacturers and resellers. The second option is more correct, but the first one is more common.

Motives of VAR companies

The motives that push companies to CM or ODM cooperation are understandable - this is a reduction in production costs. It is more difficult for the average consumer to understand the motives of companies that cooperate on the OEM scheme. Why do they prefer to invest in the creation of a new brand, rather than buying goods under the manufacturer's brand? One reason is the weakness of manufacturers' trademarks. They tend to have dissonant-sounding names, nondescript logos, lack of corporate identity, ideas.

Example. As a rule, the names of Chinese trade measurements are either dissonant and difficult to pronounce in European languages, or they are “modified” copies of the names of well-known brands, and sometimes they are simply ridiculous.

On the other hand, they are so primarily because manufacturers know that the buyer would prefer to put his "brand" on the product. They need their brands just for example.

Sometimes the "brand" of the manufacturer can be like this

The main reason for the attractiveness of creating "your" bernds is different. It gives the company full control over the product, ensuring that it does not appear in competing companies. The importance of this factor can hardly be overestimated: in the conditions of such a limited monopoly, a company can control the level of profitability, and this can significantly improve its financial position. Another important opportunity: choosing the most successful models from many manufacturers and including them in a single, wide product range of your brand. A narrow, unbalanced product line is a problem for most small Asian suppliers. OEM makes it possible to bypass it. Thus, its own brand becomes a tool that allows for short term get a high level of sales at a high rate of profit.

Why is this especially true for digital players? As we noted earlier, the reason for this is the brand vacuum, the limited competitive offer from traditional suppliers. This creates a greenhouse climate for OEM brands, promotes their emergence and development.

Dynamics of cooperation between manufacturers and resellers

The picture in the CM-ODM-OEM market is not static. VAR companies often switch from one form of cooperation to another: losing interest in any direction, they switch from CM to ODM and even OEM, leaving more and more “concerns” in the hands of the manufacturing company.

Example. French AmericanRCA-Thomsonwith your brandLyrawas among the pioneers of the digital player market. However, today most of its range is made up ofOEM-products.

RCA M5002andMSI P610

Conversely, as interest in a product grows, brand owners can take on more, moving in the opposite direction, from OEM to ODM and even CM (see Sandisk above).

On the other hand, what CM manufacturer does not dream of acquiring own brand and get the full measure of profit from your product? Taiwanese and Hong Kong companies have even come up with their own abbreviation for this - OBM, Own Brand Manufacturing, production for their brand. The path of any ambitious Asian company - from CM through ODM and OEM - to OBM. This is how new trademarks are born, having a rich experience in development and production.

Example.AVconceptHoldingsLimited, former production partneririverwent fromCM-manufacturer to brand ownersigneo, not the latest brand in Japan market. Now they are acting asVAR-reseller and purchase onOEMterms of products of Chinese and Korean companies

First steps in brandingAVconceptmade back in 2001-2002: trademarkSoul, under which in some markets were soldCD- MP3 players developmentiriver

The moral aspect of the problem

For the average buyer trademark companies on a product so far must mean that the product is designed and manufactured by that company. He already distrusts CM or ODM production: the fact that a Japanese, German or American company leaves direct production in the hands of "some Chinese" is perceived as an evil, although now inevitable. The fact that if this product were produced in Japan, Germany or the USA, then perhaps the buyer would not have enough money to purchase it, does not bother him. The fact that, unlike the Chinese, neither he nor the Japanese, Europeans or Americans will work for $10 dollars a month, which makes production in these territories unprofitable, he does not want to know. The buyer will say that corporations do all this only for their profits, and he will be right. True, he does not think that the companies get this profit by making more sales by offering him goods at a lower price.

And would a buyer dissatisfied with the “Chinese” quality want to change places with her?

We must not forget that a rare company blindly adheres to one scheme. In the range of many, including global brands you can find both ODM products and OEM products.

Example. SingaporeanCreativeis one of the leaders in the developmentMP3 players, which does not prevent her from sometimes resorting toOEM- cooperation. Yes, the modelSF-3700 from Korean companySorellpurchasedCreativeon theOEMconditions and sold under the nameMuvoVidz

The consequence of this is the final confusion of the buyer. Too obvious is sometimes the different level of products sold under the same brand, the lack of style of the manufacturer and developer in individual models. Brand trust is eroded. This situation is even more complicated than just a general drop in quality, since some items may have a high level of consumer characteristics, while others clearly “fall short”. The reputation of the brand suffers from this, as even the notorious "ordinary buyer" begins to guess that the matter is dirty.

However, when some consumers lose confidence in brands, they begin to look closely at the objective characteristics, look for feedback from those who bought the product - in general, think that this is a positive process.

If CM and ODM, that is, the most “honest” ways of organizing the production and sales chain today, cause the consumer to negative emotions, then what to say about OEM? No company, of course, will tell him honestly to his face: “Yes, we ourselves do not develop or produce anything, we are just a trading company, owners of a trademark. We purchased these products from suppliers in Southeast Asia, trying to choose the most worthy of them. We put our trademarks on them so that you can trust their quality, which we follow.” For the average buyer, such a concept is too confusing, it will not inspire confidence in him. Hence the need for outright deception. In countries with a rich tradition of consumer electronics manufacturing, branded companies may call themselves local manufacturers.

Example. neonumericcalls himself "markFrancaise” (French trademark), and the question of the nationality of developers and manufacturers is neatly bypassed. However, its slogan is design & technologie.

Neo SafaLCDhesameSafa SR-M800F.An interesting touch in the psychology of European resellers - they often include the names of the brands of manufacturing companies in the names of their models.

For other states, the lie goes further. The brand is assigned the nationality of a country whose products are trusted by the population: Western Europe, Japan, the USA, Korea. To avoid prosecution, such a shell company may indeed be registered in this state.

The reseller is not able to completely exclude the leakage of information about the real state of affairs. Although the OEM usually grants the reseller the exclusive right to sell the model covered by the agreement, it is almost always limited to the market in one or more countries. In other states, this model will be sold under different brand names. In the conditions of modern information transparency, sooner or later this fact becomes known to a certain number of users. In addition, sometimes overlaps occur, and a model from a foreign market ends up on the domestic market, having the design and characteristics of a VAR-reseller model, but a different brand. In addition, a prudent manufacturer often makes several variations of the case design in order to "milk" the same market two or more times, this also does not escape the attentive buyer.

Example. For your modelTuny8 Korean companyDynetelmade two versions of the case, one with touch control, the other with the usual one. In some countries, these variants were sold under different brand names.

There are also cases of fraud when the manufacturer violates agreements and sells the same model on OEM terms to several buyers at the same time. All this makes the reseller brand very vulnerable to black PR. Competing companies often make efforts to bring him "clean water", he responds in kind. Thus, the concept of an OEM brand, which does not contain anything immoral in itself, is densely entwined with a web of lies and scandals. As a result, there is often an unhealthy atmosphere around OEM brands.

How can you tell an OEM brand from a "real" brand?

First, in most cases, OEM brands are limited geographically. If a search on the Internet does not find products of this brand for sale abroad, this is a reason for suspicion.

Example. If the players are brandedeDesigndifficult to find outside of the UK it is logical to assume that this stamp is of local origin. Taking into account the recent successes of the British electronics industry in the field of player construction, we can conclude that we haveOEM-brand.

Secondly, the models of the original manufacturers usually have some kind of unifying idea, continuity in the interface and design. If devices under the trademark are absolutely not similar to each other, this is also a reason for suspicion.

Thirdly, original manufacturers rarely have a wide the lineup They simply don't have the resources to do so. If there are more than 3-4 models in the company's lineup, then this is also a reason for suspicion.

Example. A wide and varied product range of FrenchInovix not only attracts the buyer, but also serves as an indicator that in front of him -OEM-brand

Finally, there are other indicators, such as the names of the firmware files, the registration of an allegedly official website for a local distribution company, as well as an extremely energetic and angry denial by company representatives of its OEM essence. Firms that claim to originate from countries that have not been marked by achievements in portable electronics in recent years are under special suspicion: Great Britain, Germany, France, Japan, and the USA.

The main thing to remember is that OEM itself is not evil. In fact, it's just a distribution method. The media often accuse OEM brand owners of poor service support, as well as a tendency to disappear unexpectedly, leaving the user alone with the purchased product and its possible malfunctions. But today, the original manufacturer can easily disappear at once - this has already affected large companies such as Rio Audio, what can we say about small Korean firms! So in terms of reliability and quality of service, there is not much difference between the OEM brand and the original manufacturer, the former are even sometimes preferable because of the large resources behind them.

However, knowledge of the original manufacturer often allows you to learn more about the product, the timing of the release of new firmware, the nuances of its use. For some, it gives a chance to become a member of the global community of device users. Therefore, for an “advanced” user, the search for such is a justified occupation.