What is OEM?
OEM service is our own-brand products. We authorize and entrust our cooperation factory to produce our production, referred to as OEM, to undertake the manufacturer’s processing tasks (factory) called OEM manufacturers. Its products are called OEM products.
To put it simply, if our leather belt products are produced in Chinese factories, and our brand (LOGO) is added to the products, it is OEM.
So what should we pay attention to in OEM production?
(1) Licensing Agreement: we authorize our brand products to domestic factories in China to produce and sign the licensing agreement, which means that we allow Chinese manufacturers to make our brand products, which is not an act of infringement. It is also legal in China’s customs exports
(2) Quality requirements: We have to give our product quality requirements to Chinese manufacturers, we must ensure that the quality of our products meets our needs, and it is necessary to sign a quality assurance agreement, which is our guarantee to the end consumers.
(3) Packing requirements: how can our products be guaranteed packing? This must be discussed and clearly with Chinese manufacturers to ensure that the packaging meets our needs. If this is not confirmed with Chinese manufacturers, they will use ordinary neutral packaging, which is very common and not beautiful. It will affect the sales of our products.
(4) Environmental protection requirements: this depends on the quality of our products and the needs of our own country if our products and hardware must be environmentally friendly materials and meet the environmental standards of individual countries, such as the European Union, the United States, and other environmental protection standards, etc.; it must be made sure and clear to our cooperation Chinese manufacturers in advance that the materials must be environmentally friendly. Otherwise, Chinese manufacturers will purchase ordinary materials to produce our products.
Besides, we have to make sure the manufacturer’s quotation includes environmentally friendly materials and hardware. To avoid the factory increases the price because of ecologically friendly materials reasons.
(5) Confidentiality requirements: this is a common problem when our brand products are produced in China factory. Our brand, our designs, and our ideas, when we authorize Chinese manufacturers to make our brands, we must ensure that other factories or competitors will not copy our designs; if possible, we must sign a confidentiality agreement with Chinese factories to ensure that our new products will not be infringed.
(6) Payment requirements: we cooperate with Chinese factories, payment must be paid attention to, what kind of payment method is more appropriate? In the case of long-term cooperation and large orders, it is recommended that a 30% deposit, final payment TT, or letter of credit is recommended, which is a more common method and is acceptable to both parties.
So What should we pay attention to in OEM production in China factory?
In general, it is there are six requirements as below:
(1) Licensing Agreement.
(2) Quality requirements.
(3) Packing requirements.
(4) Environmental protection requirements.
(5) Confidentiality requirements.
(6) Payment requirements
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