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Electronic manufacturing outsourcing - OEM or EMS?

2021-1-21 10:45:03  

How do I choose to outsource?

In today's fast-moving IoT and smart device industries, the question is often "What is the right way to produce for the market?"Do I choose an OEM/ODM(original equipment manufacturer/original design manufacturer) relationship or an EMS(electronic manufacturing services) provider?

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This is often confusing because the current use of EMs and their role often means that they need to be converted to OEM/ODM relationships.In fact, designers and developers found that their products could be shipped directly from their factories, often in Asia, to the markets they wanted to compete in.As a result, many designers want their devices to be used on a global scale.This is why the OEM/ODM relationship is now moving towards vertical integration and relationships.

 

This is the new model we will introduce in this article.Many OEMs are now becoming franchisees of a brand and then combining the ability to be an OEM for themselves.Well-known brands want to license directly to factories to save middlemen costs.These brands will license directly to OEMs in return for royalties from marketing themselves and their brands.

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Do OEMs serve startups? 

For startups and new designers trying to break into this market, the way to get an OEM is to know what major brands they are working on and whether they license a particular brand.All OEMs let startups know if they have the ability to support the new business, and if the product has enough capacity, they also let startups know if they have the ability to support the new business.This is particularly true for the fast-growing IoT product business.


With billions of devices entering the market, OEMs are looking for the next best IoT product to bring to market.In essence, these factories are driven to get the branding company to license their name.Once this agreement is signed, the OEM will do the branding and continue the OEM to keep its plant operating to its maximum capacity.

 

The expansionary growth of the Internet of Things industry

IoT devices of all sizes are being developed that are seeking to make the next wave of vertical marketing, which we call "direct-to-consumer".This model is the result of a new vision launched by several influential names in the industry.IoT devices are all connected to smart devices, enabling seamless connectivity and collaborative work.All the major brands and companies are pushing their factory OEM relationships in this direction rapidly.It saves both time and money.

 

OEMs are now adjusting their business models

OEMs are actually adjusting their business models to support the new vertical model, which is going directly from the factory to the consumer.This is why even traditional email services actually integrate services by building online relationships.Outsourcing a complete solution can be started and completed from start to finish, which is the online model.


Famous companies that have proven this model to work include Amazon in the United States, Google, Xiaomi in China, angoogleB1.There are many other big companies around the world that have proven this model.

 

This wave of companies is taking smart technology to the next level, which is why these smart devices are coming to market at such a fast pace and in such a huge expected volume.The mobile phone industry is a good indicator of the growth of smart devices.To achieve this change, OEMs must first support brands and maintain their loyalty to the brands they support.By creating this foundation, the next step is to apply their knowledge to other brands and even extend it to creating their own brands, which is what makes this model work.


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