We seem to be in an era where brands dominate everything.
Kantar Worldpanel shows that in the consumer goods industry alone, a new product is created every 3 minutes. And brands are constantly being updated, created and taken off the shelves under the rapid change of products, until they disappear and fall.
Today's OEMs are different than they used to be.
In the process of development, some OEMs are looking for characteristic resources while forming their own core competencies, and gradually stand out from the foundry enterprises, forming a competitiveness that is difficult for other enterprises to imitate and copy.
The process of OEM enterprises having core competitiveness is also the process of upgrading OEM to ODM (OrIGinal DesIGn Manufacturer). ODM can provide all services from research and development, design to production and post-maintenance. The consignor only needs to "flip the brand and choose the concubine" in the dazzling product sequence and then put his own brand name.
Shenzhou International and Huali Industry in the apparel industry; North Bell and Cosmet in the cosmetics industry; Foxconn in the consumer electronics industry, and Quanta Computer in the manufacture of notebook computers. These companies have all changed the underlying processing and production of "screwing" Logic, developed into an ODM foundry.
As a result, the foundry field has begun to be highly integrated and intensive, and it is often possible to supply products for several brands. With the improvement of the production and design capabilities of the foundry, it gradually gets rid of the "parasitic" destiny of becoming a brand subsidiary, and "symbiotics" with the brand.
It is an inevitable trend for the foundry to become a brand
In the process of integrating with the world industrial chain, Chinese OEM enterprises have launched the "Made in China" brand with excellent product quality. As the quality and technology of "Made in China" has been recognized by more and more people, companies that OEM for international brands are gradually not satisfied with "being controlled by others" in the manufacturing process, and instead challenge independent production and sales.
Galanz, the home appliance brand, achieved leapfrog development to its own brand after becoming the "top-notch" in the OEM industry. Galanz was the first to OEM for Panasonic microwave ovens, and the extremely low OEM price made it known as the "price butcher" in the industry, and it took orders from foreign OEMs such as the United States, Japan, and South Korea on a large scale. In the following years, Galanz became the "World Microwave Oven Manufacturing Center", occupying more than half of the microwave oven market. By 2000, the products of more than 240 well-known brands in the world were all from Galanz.
The successful experience in the OEM field has also revitalized Galanz's own brand. Because Galanz has a complete range of parts suppliers, low labor prices in China, and has mastered mature microwave oven production technology, in 2000, Galanz sold microwave ovens for about 300 yuan per microwave oven. The price advantage monopolized the microwave oven market. In 2004, Yu Yaochang, the then deputy general manager of Galanz, introduced in an interview with a reporter from "Link Business Information" that Galanz's microwave oven products had a market share of 55% in Europe and 84% of the market share in the United States. At present, home appliances manufactured by Galanz also cover from microwave ovens to air conditioners, washing machines, air fryers and more.