ODM and OEM are acronyms for original design manufacturer and original equipment manufacturer, respectively. Frequently, consumers use ODM and OEM synonymously when they should be quite the opposite. First, an ODM Watch Manufacturer is likely a bulk production factory to create collection lines. Then, an OEM watch manufacturer tends to cater better to research and development to make a particular watch that will likely be one-of-a-kind or use rarer materials. As well, there is another manufacturer type that is well-apparent but somehow does not much press, but it will be included for readers to know more and be well-informed with their next watch purchase!
A Watches Factory should come to mind when thinking of ODM watches. For ODM, companies continue or create watch designs on a product brief provided solely by their client. Although ODM watches are made at a marginal cost compared to OEM watches, the watch is shipped from the factory to the client. The client then resales them at a higher price with their brand and name, which may have been included in the original product design or later tagged after delivery. Essentially, ODM factories are experienced in outsourced development and features with general product life cycle services.
Clients with resources to contribute to extensive design and market research and watch development (i.e., RD) can create a brand of stylistic watches with a Custom Watch Manufacturer. These clients who choose OEM will focus more on quality than the quantity OEM providers can give them. As such, OEM watches will be more expensive than their ODM counterparts as more resources and time were instilled in creating each piece. Where ODM clients have a quicker time-to-market strategy, an OEM watch retailer expects their watch to have a longer shelf life as a luxury item.
One More Watch Type
Not as widely known compared to ODM and OEM watches are OBM watches. OBM stands for original brand manufacturer. Where ODM and OEM watches are produced elsewhere, OBM watches are overseen and owned by the parent company. The parent company administers the entire production procedure from employing the designer and engineer, building manufacturing lines, and pushing marketing efforts. Thus, OBM watches are typically the most expensive option for consumers as the parent company must cover higher costs for making their product. Consumers may have the chance to get wholesale pricing from ODMs or get the customizations they desire with OEMs. In contrast, consumers are entirely at the mercy of OBMs at the whim of their parent company.
As a business owner or designer, choosing OEM will be to their advantage as products created by an OEM are under the intellectual rights of the business owner or designer. Since the business owner or designer owns the right, they have more bargaining power to negotiate production terms. Otherwise, the business owner or designer can simply go to a different OEM to meet their business needs. For consumers, ODM is the more brilliant choice as consumers can get the same quality watch as they would with an OEM but at a lesser cost since there is no markup.