What does OEM mean?

OEM is called fixed-point production, commonly known as OEM (production). The basic meaning is that brand producers are not directly producing products, but are responsible for designing and developing new products and controlling sales channels by using key core technologies they have mastered.

The OEM entrusts other manufacturers of similar products to produce specific processing tasks through contract ordering, and then buys out the ordered products at low prices and directly labels their own brands and trademarks. This cooperative way of entrusting others to produce is called OEM for short. The manufacturer who undertakes the processing task is called OEM, and the products it produces are called OEM products. Fixed-point production belongs to the "OEM" mode in processing trade, and it is the export of labor services with commodities as the carrier in international trade.

For buyers and sellers, OEM mode not only enjoys the overall competitive advantage of products, but also has the most distinctive advantage, that is, the flexibility of buyers and sellers inside and outside the market. Either party can terminate the contract at any time as long as it finds a more profitable way. From this perspective, the OEM market is efficient.