Differences Between OEM, ODM

In OEM (Original Equipment Manufacturer), the products are based on the buyer’s own designs and specifications.  The IP rights of the product remain with the buyer.

In ODM (Original Design Manufacturer), the buyer takes one of the manufacturer’s own finished or pre-designed products and do minor customization for the buyer to sell under his own brand.

OEM Advantages:

  • Product is customized according to client specification
  • IP rights remain with the buyer

ODM Advantages:

  • Shorter development time

No need for buyer to do own R&D