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Glossary · Manufacturing
What is OEM (Original equipment manufacturer)?
A factory that manufactures a product to the buyer's own design and specification, usually sold under the buyer's brand rather than the factory's.
In China sourcing, OEM means the buyer supplies the design: drawings, specifications, materials and branding, and the factory builds to them. The buyer usually owns the design and should own any custom tooling made for it, but only if the contract says so.
OEM gives you control and a product competitors cannot simply buy, but it puts more on you: the design must be complete and manufacturable, and you are responsible for the product meeting US standards. Expect higher MOQs and tooling costs than for a factory's existing products.
Beato runs OEM production from the client's finished design. It does not offer product design or engineering, so drawings and specifications need to be ready.
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