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Glossary · Manufacturing
What is ODM (Original design manufacturer)?
A factory that designs and makes its own products, which buyers can order as they are or with modest changes and their own branding.
An ODM owns the product design. Buyers choose from the factory's range and customize within limits: colors, materials, finishes, logo and packaging. Development is faster and cheaper than OEM because the product and tooling already exist.
The trade-off is ownership and exclusivity. The design usually belongs to the factory, so competitors can buy a very similar product. Check that the design does not infringe someone else's patent or trademark, especially if it closely resembles a known brand.
ODM suits buyers who need proven products quickly, for example commercial furniture or lighting from an existing range. Agree in writing which customizations are exclusive to you.
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