[KongchangAI]
ConceptOriginal Design Manufacturer / 原始设计制造商

ODM

A manufacturing business model in which the manufacturer is responsible for product design and production while the brand owner handles sales and distribution. Development costs are spread through economies of scale, and profitability depends on downstream client sales volumes.

Timeline (last 90 days)

Oct 12

The business logic of the ODM model is built on the scale effect of trading volume for profit, where the contract manufacturer must bear the investment in product design and R&D and has a stronger dependence on downstream customers' sales volume.

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Oct 12

The difference between ODM and OEM is that the ODM party also bears the R&D investment in product design.

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