If you open China's "foundries map", it's not difficult to find that from electronics to clothing, from clothing to household commodities, many international brands take advantage of China's labor cost advantage, products are almost produced in China. Like the famous notebook manufacturer Quanta OEM reaches production of notebook computers accounted for 30% of global notebook sets up and down. and Quanta without its own brand notebook; IT data firm iSuppli said worldwide sales of notebook computers, 86% came from China, but it is a major DELL Dell, HP and other OEM nominal production. In addition, there are many foreign luxury brands have been "quietly" to carry out OEM production in China, such as Armani, Louis Vuitton and other luxury brands of the world's top clothing line in fact already settled in China and find a licensed manufacturer.
In addition, LED foundry industry is also a widespread phenomenon; According to the relevant data show that the proportion of China's exports of OEM LED products reach more than 80%. Meanwhile, there is still one major foundry model development model of China's LED industry, like Osram, Philips, most of the products of such foreign brands in China also has OEM production.
There are two kinds of OEM and ODM LED foundry model in common. Because the cost for manufacturing, transportation convenience, saving development time and other aspects. Some well-known brands are generally willing to find other vendors OEM or ODM. Which, OEM that original equipment manufacturers, commonly known as OEM; OEM brand producers usually do not directly produce goods, but to use their grasp core technology responsible for the design and development of new products, control sales channel, the specific processing tasks ordered by contract the delegated to other manufacturers of similar products, low-priced products set after the buyout, and directly affix their own brand names.The difference between ODM and OEM is that the participation of product development and design, and is characterized by technology outside, outside the capital, the market outside, only the production account.