OEM is the meaning of Original Equipment Manufacturer,According to the literal meaning, should be translated into the original equipment manufacturer.Refers to a manufacturer according to the requirements of another manufacturer, for the production of products and product accessories, also known as the brand or OEM production.

 

 

Now more and more comapany want to find a good factory which can OEM.wallet also.With respect to the buy side, the supply side is in a relatively passive position, however, the OEM mode is still have good prospects of gain.

 

1、The domestic leather industry competition including wallet are becoming increasingly fierce, the market tends to saturation, some of the domestic wallet manufacturing enterprises to open up the market, and do OEM for foreign brands. To strengthen the company's global awareness.

 

2、Widespread in modern production scale economic effect, with the expanding scale of output while showing a unit cost decreased. This may come from the deepening in the specialized division of labor, allocate fixed cost. If the enterprise itself has this excess production capacity situation, the decline in the cost of the effect will be more obvious. Participate in OEM supply, means to expand the scale of output, not only increase the sale of products, but also reduce the cost of.

 

3、Play an important role in product supply chain provides OEM companies tend to buy in OEM, OEM can be purchased in the production management, marketing, product development and strong strength, in the process of cooperation, can control the OEM supplier, in product quality and cost control, operating efficiency control management in accordance with the purchaser the requirements of organizing production, with the advanced organization control, from the "learning by doing" experience, improve the management level of enterprises.

 

4、If the OEM product of innovative products, supply enterprises in addition to meet the buyers needs, also can be sold on the domestic market with their own brands. Or increase the length of product line, the introduction of new products or product lines; deepen the depth, increasing the variety of existing products, increase the competitiveness of the enterprise no matter where on the one hand.

 

OEM on both the buyer and the seller, in addition to share product competitive advantage, also has a distinctive advantage, that is both flexible import market. If one of the parties found way to have good prospects of gain, it may terminate the contract at any time. From this perspective, OEM market is highly effective.