What are the advantages of secondary ODM? What are the ways to collaborate?

Date:
2023-02-10
Views:

Secondary ODM is the abbreviation for Original Design Manufacturer in English, which refers to the original manufacturer's commission, where the manufacturer provides a series of services from production, research and development, packaging maintenance, etc., while the commissioning party only needs to carry out sales. Some clients may also directly authorize the other party to manufacture their own brand and allow the other party to label the brand. Manufacturers that undertake corresponding manufacturing business, also known as ODM manufacturers, produce products called ODM products. ODM is widely used in the field of cosmetics. Let's learn about the specific advantages of throwing ODM next time.


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1. Characteristics of ODM

But for ordinary ODM factories, there are certain limitations. They can only perform OEM processing, and the production party can directly label their own brand, which reduces their production time for the commissioning party.


2. Different ways of ODM

ODM has different ways, including buying out and not buying out. But the method requires the manufacturer to have a certain level of design and research and development capabilities, and the product needs to be designed, developed, and produced. The other party only needs to sell it. Without buying out, ODM can sell designs to other brands.


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3. Advantages of ODM

For the production party, they have more production processes, so if they entrust them to specialized ODM outsourcing, they can save costs and achieve more profits. If you produce it yourself, you may also encounter a series of risks, and the ODM model can avoid them. ODM requires certain research and development capabilities for the processing party, so the threshold for personnel is relatively high. In the current market model, ODM has a relatively high return on investment, which can shorten the investment cycle of products and create higher profits.


There are many manufacturers producing secondary polishing ODM, and the quality varies, but they all need to meet the requirements entrusted by the manufacturer. As it is a secondary polishing packaging for cosmetics, the requirements for materials are relatively high, and it belongs to products that come into direct contact with the skin. At the same time, there are high requirements for the sterility of the production workshop. Manufacturers need to conduct a comprehensive inspection of the manufacturer's qualifications, production scale, production line, and R&D team when entrusting, in order to purchase services that meet their own requirements. The above are the advantages of throwing ODM for the second time, and we hope to provide some reference.

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