Inexperience, Low Acceptance Stall ODM Growth

Inexperience, Low Acceptance Stall ODM Growth

There are several main opportunities to cooperate with China, such as import/export of goods, Original Equipment Manufacturer (OEM) or Original Design Manufacturer (ODM) or to open/buy your own factory. Some leading manufacturers even employ the Original Design Manufacturers (ODM`s) to meet the growing demand.

China suppliers have to hurdle various obstacles in their pursuit to market in-house labels internationally. Inadequate funds exacerbate the difficulty in implementing brand building and marketing strategies.

For many export manufacturers in China, being able to market their own brands in overseas destinations is an exciting prospect, one that comes with the promise of higher profits and less reliance on OEM orders. But while there are a few that have found success, most others are struggling to gain a foothold in the OBM arena.  Both, OEM vs ODM have the advantages and disadvantages.

Inexperience, Low Acceptance Stall ODM Growth

The majority of OEM-oriented suppliers in the country invest most of their time in improving production capability and capacity. Some of those that also have ODM lines may allocate resources to boosting R&D and design acumen. Few, however, have sufficient marketing experience that is needed to promote China brands in international markets.

Budget is an issue as well. Significant investment is required to beef up R&D capability, launch marketing campaigns, create sales channels and provide aftersales service. Comprehensive promotional strategies are difficult to implement without sufficient funding.

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