The meaning of OEM is: a cooperative production method of product development and manufacturing according to the original unit (brand unit) entrusted contract, using the original unit's trademark, and sold or operated by the original unit. OEM can be referred to as OEM or OEM. This business model has been operating internationally for many years and has been effective. In today's highly developed industrialization, enterprises will reduce their investment in fixed assets as much as possible in order to increase the allocation of their own resources in terms of innovation capabilities. Many companies have already mastered the core technology of their products and established a mature marketing network. They no longer produce directly, but instead complete the production tasks of their products by letting other companies produce on their behalf. In this way, you only need to pay for material costs and processing fees, instead of having to bear the risks of equipment depreciation, self-built factories and production management, and you can flexibly place orders on demand at any time according to market changes. This can promote the formation of new operating advantages in the finished product business, cultivate and strengthen the inherent expansion power of the enterprise, improve operating capabilities and management levels, and thereby achieve higher-level capital operations. However, most small and medium-sized manufacturing enterprises do not have a lot of funds to invest in marketing and advertising, which makes it difficult for products with good quality to gain a place in the market. Through OEM cooperation, the brand effect and marketing network of large enterprises can be used to increase production for small and medium-sized enterprises, expand sales and improve manufacturing management, and can also win greater economic benefits. The cosmetics market is a market occupied by brands. At present, there are about 20,000 cosmetic brands in the country, but only about 3,000 large and small cosmetic companies with production capacity. The vigorous development of the cosmetics brand market has resulted in the prosperity of the OEM business of cosmetics manufacturers. China will become a global OEM production. After China joins the World Trade Organization, one-third of the global OEM business will be transferred to China. More and more world-renowned manufacturers are transferring production to China, making China a processing plant for global industrial manufacturing. Nowadays, OEM among domestic enterprises is also common, involving almost all production industries, among which the most prominent ones are electronics, home appliances, OEM cosmetics
, hardware, lighting, toys, clothing, automobiles, alcohol, food, etc. Many companies not only produce their own products, but also produce products through OEM. The investment in the start-up period of cosmetics brands is relatively small, but because of the high cost of brand promotion, 90 cosmetic brand companies are unable to invest in factories or carry out technological research and development. Choosing OEM production can reduce fixed asset investment and expand market promotion The cost can also solve the problems of technology, talents, formulas, production licenses, sanitation licenses, etc. The most important thing to choose an OEM manufacturer is whether it has advantages in hardware, software and price. The so-called hardware refers to whether the manufacturer's equipment is advanced, whether the factory's sanitary standards are met, and whether it has comprehensive production capabilities from OEM skin care
products to color cosmetics, bathing, and shampoo. The so-called software refers to whether the manufacturer has special technology, whether it has a group of qualified chemical factory engineers, and whether it can produce high-quality products according to customers' needs. Price has increasingly become a restriction for brand companies to occupy the market, so brand companies have begun to require OEM manufacturers to have advantages not only in terms of quality but also in terms of unit price. Many domestic OEM cosmetics manufacturers are family-owned enterprises, which seriously lack quality management systems and core technologies, which has caused many brands to be launched on the market due to quality problems. Brand companies increasingly require cosmetic OEM manufacturers to have a complete management system, that is, ISO international quality system certification. ISO9001: 2000 quality certification is the latest certification system of current international quality standards, and it is also a management system that good OEM manufacturers must pass. OEM is a must-have under the trend of large-scale social production and large-scale collaboration. It is also an effective way to rationalize resources. Especially in the category of facial mask oem processing, it is the result of socialized production. In Asia, Japanese companies are the first to adopt international OEM production and trade in order to quickly occupy the market and reduce production costs. The time for China to develop OEMs is relatively short, mainly due to the transition from the former planned economy to the market economy.
The use and installation of personal care factory
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