ODM
ODM (Original Design Manufacturer)
ODM primarily refers to a model in which the brand owner does not directly manufacture or develop products. Instead, the manufacturing company leverages its proprietary core technologies to design and develop new products, while the brand owner commissions production through contractual agreements. Following this, the brand owner either purchases the ordered products at a discounted price or retains the option not to buy them, and then applies its own brand label to the finished goods.
Key features of ODM:
1. The manufacturer holds the core technologies of the product, while the brand owner controls its sales channels.
2. The labor, facilities, and equipment required during the production process will be provided by the cooperating manufacturer.
3. Reduce customers’ investment costs, R&D expenses, and investment risks; enhance product competitiveness; and maximize profitability.
Classification of ODM:
1. Buyout cooperation model:
The brand owner may either acquire the pre‑existing design of a specific product model from an ODM manufacturer, or commission the ODM to develop a customized product solution. In either case, unless expressly authorized by the brand owner, the ODM is prohibited from reselling the relevant product to any other customer.
2. Non‑exclusive cooperation model:
The brand owner does not acquire exclusive rights to the ODM manufacturer’s design for a particular product model; accordingly, the ODM manufacturer may license that same model’s design on a non‑exclusive basis to other brand owners.
When two or more brands share a common design, the primary distinction between their products lies in their appearance.
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