Let’s look at what China’s economy is based on. China is a big exporter to the rest of the world, as well as being a centre for ODM and OEM, in other words they manufacture for many international companies. As an exporter and a manufacturer for others, China is a supplier.
- OEM (original equipment manufacturer)
The original manufacturer of a component or subcomponent. A company that sells products under its own label.
- ODM (original design manufacturer)
A company that manufactures a product that is finally offered for sale by another company.
In the past, export-oriented factories focused on OEM orders, with suppliers that catered to both overseas and domestic clients more inclined to develop ODM and OBM lines. Government aid and support from associations have emboldened more exporters to build their own brands.
Clothing companies are reputable for ODM and OEM production. They are able to deliver quality clothing articles in short lead time, as foreign importers and retailers request clothing suppliers to tighten up supply chain management to ensure the ordered merchandise reaching the store floor at the right time. Increasingly, Hong Kong clothing companies, the established ones in particular, have shown enthusiasm for brand promotion.
Many Hong Kong OEM/ODM manufacturers of clothing products provide their merchandise all over the world. Companies believe that their original equipment manufacturer (OEM) clothes are reasonably priced. So, when some companies say something when produced by a big brand of product OEM or ODM products, never believe that quality is equivalent to brand. The only thing you can believe is that the producers have to have some capacity.