What is ODM and OEM?
The acronyms “ODM” and “OEM” may sound intimidating, but they are an important part of any startup.
You’re a fresh startup looking to manufacture products or work on your branding and design. However, there is one big problem: You don’t have the right team to achieve your goals. This may not be surprising, but not many startups run into this problem. So, what do they do?
They turn to ODM and OEM services. Knowing what these services do and how they are different is going to be your startup's most powerful tool to accomplishing your goals.
What are ODM and OEM?
“ODM” is short for “Original Design Manufacturer and “OEM” is short for “Original Equipment Manufacturer.” ODM services help clients with the design and branding side of their business. OEM companies are contracted to produce items, like how Apple uses Foxconn to produce iPhones.
Let’s say you have a cosmetics company and you have the perfect formula for a body lotion. However, you do not have a method of producing enough lotion for a large demand. In this instance, you would turn to an ODM service to help mass-produce your product to sell. You will also be able to retain full control over the production. So if you decide to use a different ODM later on, you don’t have to worry about being restricted from doing so.
Let’s take that same cosmetics company. In this scenario, you are able to produce enough lotion to meet your current demand. However, you feel as if the boxes the lotion comes in do not reflect your company well. When it comes to any sort of design need, you’ll want to turn to an ODM service.
For your business to succeed, you need to know when you should utilize either ODM or OEM. Both services are able to fill-in the gaps if your current network is unable to meet your production or design needs. However, there is a little more to it if you want to take full advantage of these services.
How You Can Take Advantage Of ODM And OEM
It’s becoming increasingly common for a single person to have an idea, but not the team to work with. For those who lack a team that shares the same vision, companies offering ODM and OEM services are going to be the route to take. However, there are different ODM and OEM services that specialize in different areas. Learning how to find the right one for your needs is going to be how your startup starts off on the right foot.
For instance, CJW Cosmetic specializes in cosmetic OEM and ODM. We have partnered with over 500 different cosmetic brands to research and produce different cosmetic formulas ranging from skincare, aesthetics, food and health supplements, and anything else on the beauty spectrum. Additionally, our ODM services utilize a team with a focus on making clean packaging and branding designs that help express a startup's image.
If you’re ready to create your cosmetic startup, get in touch with us and we can discuss different services and pricing options that will best suit your needs.