OEM is the English abbreviation for ORIGINAL EQUIPMENT MANUFACTURER, meaning that the original unit (brand) of contract for product development and manufacturing, using the trademark, the original units sold or operated by joint venture production. OEM can be referred to as OEM or OEM, this business model has been in operation for many years and works at the international level. In today's highly developed industrialized, in terms of innovation capability of enterprises in order to increase their own resources configuration, try to reduce spending on fixed assets. There have been many companies mastered the core technology products and established a mature business and cut the network, start of production is no longer directly, but by letting other companies took the production to complete the production of its products.
In this way, pay only the cost of materials and processing fees, without having to bear the depreciation of equipment and building their own factories and production risk management, may also at any time according to changes in the market and flexible on-demand order. Which can promote products business to form new advantages, inherent in the development and growth of enterprises expansion and improve operational and managerial levels, and thus to a higher level of capital operation. And most of the small and medium sized manufacturing enterprises for not a lot of money into marketing and advertising campaign, good quality products it is difficult to gain a foothold in the market. Through OEM cooperation which can help large enterprises brand and marketing network for small and medium enterprises to increase the output to expand sales and improve the management level and to win greater economic benefits.
Is a brand of cosmetics market share of the market. At present, there are about 20,000 cosmetic brands, but only about 3,000 large and small, has a production capacity of cosmetics companies. Cosmetics brands cause cosmetics manufacturer of OEM business market booming prosperity. China will become the global OEM production base. In the wake of China's accession to the World Trade Organization, global OEM business one-third will be transferred to China. A growing number of world famous manufacturers shift production to China, China is becoming the global industrial manufacturing plant. OEM are also very popular among domestic enterprises, involved in virtually all of the production industry, among which the most prominent are electronics, home appliances, cosmetics, hardware, lighting, toys, clothing, cars, liquor and food.
Many of China's famous brands such as Haier, CHANGHONG, ACE, little Swan, Lok Wah, wuliangye, jiannanchun, are taking advantage of their brand and many OEM products, maximum effect of brand, and maximize your brand. Many enterprises not only their products, also by way of OEM products. Cosmetics brand start-up investment is small, but due to brand promotion expenses more, 90 per cent of cosmetic brands cannot afford to invest and set up factories or r, select the OEM OEM production and reduce investment in fixed assets, costs of expanding market can also resolve technical, personnel, formulation and production license, health permit issues.
Select OEM manufacturer, the most important thing is to see if it is in the hardware, software and price advantage. Hardware refers to the manufacturer of the equipment is advanced, plant health standards are met, whether from skincare to makeup, shower, shampoo and other comprehensive production capacity. Software means the manufacturer has a special technology, whether chemical plant Division has a team of qualified, able to produce high quality products according to customer requirements. Price brands have increasingly become market constraints, so brand companies begin to OEM manufacturers not only from the quality and requires manufacturers to have an advantage from the unit price. Many domestic cosmetics manufacturers are family businesses, a serious lack of quality management system, core technology, causing the quality problem many brands introduced to the market. Brands required more and more to cosmetics OEM manufacturer has a good management system, the ISO international quality system certification. ISO9001:2000 quality certification is the latest international quality standard certification system, but also good management system required by the OEM manufacturer.
Cosmetics OEM model of the biggest advantage is that vendors and benefit-sharing, risk-sharing between the brands. It became exclusively a community between vendors and customers, and naturally formed an Alliance, which would effectively stimulate the enthusiasm of both sides, more conducive to sharing of benefits, modern enterprise marketing risk and sharing ideas. Brands reduced the backlog of raw materials, capital, core technology and investment risks such as equipment depreciation, freeing up money for marketing. LaVette on high quality materials, strict incoming inspection, as well as bulk purchases, guarantees product quality at the same time, ensuring low cost products; strict quality control in the production process, products manufactured are properly inspected, LaVette's cosmetics will be quality product. OEM is a kind of large-scale socialized production, under the trend of cooperation the only way, is one of the effective ways of rationalization of resources, is the result of social production. In Europe, the nature of OEM have been established as early as in the 1960 of the 20th century industry association 1998 OEM production and trade has reached 350 billion euros, accounting for 14 per cent of gross output value of industry in Europe, OEM production has become an important part of modern industrial production. With the further development of economic globalization has accelerated, OEM demand are likely to be more within the selected OEM suppliers, in particular to manufacture low-cost countries and regions.
In Asia, Japan enterprises to quickly occupied the market, lower production costs, is the earliest forms of international trade in OEM production. OEM in China for a short time, mainly from the former planned economy to the market economy as a result of excessive. China's cosmetics market of about 50 billion yuan a year, and by 2010 is expected to reach 80 billion yuan. In this huge market attracted by high profits and every year there are hundreds of new cosmetic brands available, leading to huge cosmetics OEM OEM business opportunities.