OEM development to the ODM industry upgrade
Not all businesses have the strength of Konka to invest abroad. However, the following examples can provide some reference for the majority of enterprises.
In Nasdaq stocks generally fell, its rating on the stock to be upregulated in part because: it does not satisfy the in simple product assembly, but begin to get involved in the design of the products, products from drawings to finished the whole process can be completed, from OEM to ODM.
For most of the OEM manufacturer, choose to do this line, is upset, who is not willing to always stay at the end of the food chain, lived a life of tender mercies. Is even the world's largest electronics contract manufacturer Flextronics, also do not meet for Motorola to produce some mobiles phones, is produced by Microsoft game machines, although these consumer goods in its sources of income accounted for the bulk.
Profits year after year continued to decline is OEM manufacturers have been forced to change the direct cause of the survival strategy, according to the Chinese version of the "business weekly" reported, the OEM's "gross profit" has from the original 15% down to 5%. Motorola to launch low-cost mobiles phones, through the selection of foundry manufacturers, each mobiles phones is only $30 price.
This time, the completion of the primitive accumulation of the OEM manufacturers, like Flextronics that to the top of the value chain to gradually shift, a selection of the most practical. Relative to build brands, OEM and ODM are relatively pure work, but to achieve this across, not easy, at least have two aspects of the ability.
Innovation ability in product development
Some OEM vendors want to develop their own R & D capabilities under the help of customers. This desire is unrealistic, the customer is not a charity, they do not have this obligation to help you. OEM manufacturers have to have their own R & D team, have the ability to design innovation, can develop a market value products, seize the eyes of customers, to further cooperation may.
Look at the practice of flextronics. It has begun to build a high level of investment in the design team, a new mobiles phones from Japan's Kyocera Corp (Kyocera) came from its design. It also spent $80 million acquisition of design company maxell (microcell group), which has more than 300 R & D engineers.
Understand customer's needs
Although some OEM manufacturers claim, to meet customer demand has been the culmination of a, but with the production of quality, cost, delivery and other rigid measure different, design standard is often difficult to quantify, and sometimes even "I want a looks very beautiful products" such customer requirements, this time on the need to ODM manufacturers to help customers to find market positioning, and design.
Flextronics's chief technology officer Nicholas Brathwaite had said "from according to the contract production extended to more product development is a major challenge, Flextronics will take measures to improve the communication between design and manufacturing departments and customers".
Who knows, make the product a money, do the brand one yuan to one yuan money, when companies do not have the capacity to one yuan to one yuan money, may wish to "a bit a bit of money -- from OEM to ODM can improve the company's profitability, it is estimated that Flextronics over one year from the shape of the ODM business get $10 billion in revenue. Just any company before the change, don't forget to weigh yourself outside the manufacturing and logistics the three kinds of ability, ability to design weight.