The world has shrunk to a large extent with the fast paced development of information technology. As a result, globalization is taking place in every industrial sector. And clothing industry also is no exception to this. Nowadays it has become a common practice that one company producing a product and selling it to another organization for distributing it. Quite often advanced countries outsource manufacturing functions to developing countries for various technical and commercial advantages.
Many organizations design and produce various clothing items according to its own specifications and sell it to another firm which undertakes the responsibility of distributing those products. This is called OEM clothing. But sometimes OEM clothing manufacturers produce the clothing items as per their client’s requirements also. Here, the manufacturing organization sells the products to the client who markets the entire product line to the customers in their own brand name. This is known as ODM. It is really confusing to see the difference between OEM and ODM because they are very similar.
Most of the times the popular brands we look for while shopping our jeans, shirts and various other dresses including sports outfits are not manufactured by them. The customers are hardly aware of this. But it is a legal process which has many advantages.
Few benefits of OEM apparel are mentioned below:
In this process the manufacturing and marketing activities are totally divided into two separate companies. Therefore the manufacturers become free from the worries of marketing the products and can solely concentrate on production process. The manufacturers are specialized in producing the clothing items and have the production capacity, infrastructure, technological know how including the required experience and expertise which brings out the best result meeting the highest standards.
The marketers on the other hand are experts in analyzing and distributing products in the market. This brings sure shot success in popularizing those products. The marketers are the big brands who largely focus on branding and increasing their visibility in the market. This they can do perfectly well as they don’t have to bother hundreds hazards of production process. As the brands do not require to set up a factory they save a lot of money which they can invest on marketing activities.
Advanced countries can make tie ups with the OEM firms in developing countries where the cost of production is much lower and get the products at a lower rate. This is highly beneficial for both the organizations including the customers also as the prices become quite affordable in this method. The whole system has a well thought division of labor which serves the customers best.
So in a nutshell OEM is a great manufacturing process which refers to excellent quality, outstanding service including short lead times and on time deliveries. Additionally you also get excellent prices.