OEM / ODM Service and Customization 101 (Part 1 of 3)
OEM / ODM Service and Customization 101 (Part 1 of 3)
What is OEM / ODM service and customization for high volume applications?
If you want to learn more, please visit our website.
In this blog series, I do not wish to overwhelm you, our reader, with acronyms aimed at simplifying a message that only confuses the topic further. So, before continuing, I will offer two key definitions for clarity as we go on.
OEM An original equipment manufacturer
Traditionally is defined as a company whose goods are used as components in the products of another company, which then sells the finished item to users (Investopedia, ).
ODM- An original design manufacturer
A company that designs and produces products that are marketed and sold under the name of the original equipment manufacturer (OEM). In other words, an ODM provides ready-to-go products for the OEM (Techopedia, ).
Now that we have these terms properly defined, time to get to the task at hand
Phocos strives to provide universal global access to reliable energy as part of our core mission. That means wherever you are in the world, we fundamentally believe access to reliable energy can be possible and the entirety of our product portfolio is aimed to enable it. From solar charge controllers, to hybrid inverter chargers and energy storage, to high-efficiency DC refrigeration solutions, our products are designed to elevate the performance and reliability of off-grid power supply systems.
As our reliance on energy increases, new applications for off-grid and edge-of-grid (Eg. weak power grids or conditions with unreliable utility grid power access) solutions based on renewable energy sources and energy storage are constantly appearing. While these applications all have one common requirement, high reliability, functionality, and system deployment needs can often vary greatly by application which can be an impediment to achieving the volume scale necessary to make significant strides to achieving our mission. For those reasons, Phocos has made ODM and OEM customization for recurring, high-volume applications a large part of our offering for the past 20+ years.
Phocos partners with the some of the worlds most trusted brands to deliver customized solutions for high-volume applications. Our OEM customers are experts in their field/applications and they rely on Phocos for their renewable energy management needs to create seamless solutions that maximize value for their clients. Our decades of experience designing and manufacturing world-class power conversion electronics for renewable energy applications has generated a library of proven reference designs for battery-based power supplies that serve as fantastic building blocks to reliable energy access for nearly any application or environment. In our experience, when two companies combine their unique expertise toward a common objective, the result is a superior solution that provides reliable energy access to so many people in the world, thereby closing the energy access gap.
Now that Ive made my best attempt at over-simplifying what is a complex part of our business, the next chapters in this recurring blog series will cover the many types of customization and service options (Part 2) Phocos has tackled in the past and outline best practices for developing a successful OEM/ODM relationship (Part 3). Stay tuned!
Series:
OEM / ODM Service and Customization 101 (Part 1 of 3)
OEM / ODM Service and Customization 101 (Part 2 of 3)
OEM / ODM Service and Customization 101 (Part 3 of 3)
References
Investopedia. (, July 28). Original Equipment Manufacturer (OEM). Retrieved from Investopedia: https://www.investopedia.com/terms/o/oem.asp
Techopedia. (, March 16). Original Design Manufacturer (ODM). Retrieved from Techopedia: https://www.techopedia.com/definition//original-design-manufacturer-odm
How to Find a Reliable Manufacturer to make an ODM ...
In our recent communications with customers, we found that many of them want to have unique at home beauty devices of their own brands. They expect the devices to be different from those facial toning devices the marketplace already had. True that well-designed and nice-looking home use beauty devices will be outstanding among so many of the competitors products. It also helps strengthen the brand impression of their users.
Question is, they usually dont know how to make ODM at home beauty devices for their own brands. Some think it is an easy task. They can simply find a factory and pay money, then the factory will deliver the expected device as they wished. Yet, they might be somehow disappointed and overwhelmed later by tons of work back and forth with the factory. Some are afraid that it must be too costly and complicated to accomplish. If they think so, they may miss an opportunity to grow their business and profit in this fast-increasing business sector.
Thats why we have to spend a lot of time introducing the whole process to every customer to help them start and finalize their ODM home use skincare device projects.
So, in this article, we will guide you through step by step on how to develop and make a beauty device for your own brand. There are things you must know and issues you need to avoid.
You will find that making your own facial toning device is not something that tricky and difficult if you do things right. Now, here we go.
Framework for implementing an ODM beauty device project.
Step 1: Setting up your project
Step 2: Find a Reliable Manufacturer
Step 3: Manufacturer Assessment
Step 4: Negotiation with Your Manufacturer Partner
Step 5: Development Process of a Beauty Device Project
Step 1. Setting up your project
To set up your project, there are a few things you need to get well prepared for. And we believe you must have done a lot of market research before you reach out to us asking for manufacturing cooperation. If you didnt do much homework, dont worry, try to follow the below tips to make a thorough preparation.
1. Find a target competitor
Sometimes you might be inspired by a skincare device in the market from another brand or company. You like it very much but find it is not the perfect type you want. You happen to get an idea to make a better version. This new idea and device may help people enhance their skincare experience at home. And grow their business and profit in the meantime. You need to purposely search for this kind of skincare device in the marketplace that can inspire you.
2. Define the functions of your beauty device
What kind of skincare purpose would you like your device to do? What technology would you prefer to use to fulfill the purpose? Anti-acne, anti-aging, whitening, tightening, reduce wrinkles, improve absorption, etc. There are some major technologies most beauty devices adopted. You can use a single technology in one device for a specific purpose. Or you can integrate several of them to make multiple functional devices.
Here are a few major technologies you can find from most of the facial toning devices in the market and the core skincare results they can bring to you.
1. Microcurrent or EMS: microcurrent devices can stimulate skin muscles and lift the skin. It helps you enjoy microcurrent facials at home easily.
2. Radiofrequency: Radio frequency skin tightening devices can tighten the skin, heat tissues, increase elasticity, and boost collagen. It enables you to have a radio frequency skin tightening at home.
3. Sonic vibration: Massage and relax the skin.
4. Heating therapy: Promote circulation, diastolic pores, accelerate the absorption of nutrition.
5. Cold therapy: Shrink pores, soothe the skin, lock up moisture.
6. Ion therapy: deep cleansing, to improve absorption.
7. Plasma: Kill bacteria, purify pores, anti-acne, lighten spots.
8. LED light therapy: the LED light therapy devices usually use red light, blue light, green light, and orange light to let you experience the light therapy at home. The benefits of LED light therapy include stimulating collagen reproduction, anti-acne, whitening, tightening, and rejuvenation.
There are many other skin rejuvenation technologies. We keep investing to research and verify the effectiveness of these technologies. We believe there are many skin care experts among our readers and visitors. We would love to cooperate with you and create truly efficient portable skincare devices together.
3. Product Positioning
According to the most popular marketing tactics, you shall find a good positioning strategy for your new beauty device.
Will it be a high-end or mid-end one?
Will it be for young people or users aged 30-40?
Will it be for specific niche target customers?
Will it be sold online or in a store?
Ask questions like these to find an appropriate positioning of your new device.
4. Budget
You will also need to set up a budget for your ODM beauty device project. Think over how much you will invest roughly and how much do you expect to get payback.
5. Timeline
Time is always important. In most cases, the market only leaves you a very small window to cut into. Think over when to initialize, how long you need to finalize, when to start selling, etc.
6. Market and Sales outlook, market analysis.
Make an objective evaluation of how many devices you are going to sell. This can be based on thorough market research before you start the project.
Step 2: Find A Reliable Manufacturer
When you finish the above preparations, it is time to find a reliable manufacturer partner to help you fulfill your idea and bring the product alive.
There are several resources where you can find a manufacturing partner.
Option 1: Contract manufacturing company
A local contract manufacturer can be an easy option. The local contract manufacturers usually offer one-stop turn-key solutions. With their support and service, you can easily get your project done. Communication is easier and more efficient. Cost is more expensive. Most of these contract manufacturing companies have their supply chain in Asia. They may do the designs, and give other jobs to their partners in Asia.
Option 2: China manufacturers
There is no doubt that there are hundreds of factories in China that can help you do your project. However, you will need to invest some time exploring and find a suitable partner. The simplest way is to Google beauty device manufacturer or skincare device supplier.
Once you get a list of potential manufacturers from Google search results, filter the list to find out the right ones for you. The following tips may help you do the screening more efficiently and dig out the right partners for your beauty device project.
Step 3: Manufacturer Assessment
1. Qualification
A qualified manufacturer partner should have a design, molding, plastic injection, and production capabilities. You may also choose multiple partners for different tasks: an ID design company, a molding company, a plastic injection company, and an assembly factory. However, we dont really suggest you do so. It makes things more complicated. You will need to communicate with every factory and deal with too many trivialities during the product development.
2. Experience
Check out if the skincare device supplier has experience in making similar projects. An experienced partner will save lots of money and time for you. They understand exactly what you want and need. They know what to do step by step to guide you through the whole process.
3. Product match
With competitive price and timely delivery, JWH sincerely hope to be your supplier and partner.
The beauty device manufacturers usually have their own product lines. Although you are not going to buy their existing models, your preference on their current selection is also quite important for your decision. If you love their devices, at first sight, no matter it is because of their design, function, color, or even package, there are more possibilities you will choose that manufacturer as your potential partner.
4. Cooperation Intention
The manufacturers intent of cooperation is another key factor to consider. You can check this out by evaluating whether your communication is as smooth as you expected with the manufacturer. Sometimes the factory is only interested in selling their existing products to you. When a sales guy is actively responding to your questions and requests, the company he is working for is more likely to coordinate with you and support you.
Some people may tell you that youd better choose a big factory or a reputable brand factory. They think these big factories are more reliable. Be alert of this. Big factories do seem reliable, to some extent. Nevertheless, the MOQ, cost, or other requirements for working with big factories are no doubt much higher. On the contrary, a medium-sized factory is more likely with a stronger intention to coordinate with your needs. Because they can be very flexible.
Step 4: Negotiation with Your Manufacturer Partner
Now that youve decided to choose one or two manufacturers to continue a more detailed negotiation, including product design, costs, manufacturing, and shipment, etc.
1. NDA (Non-Disclosure Agreement)
Remember, before diving into any product ideas, drawings, or specifications with the manufacturer, wed suggest you sign an NDA (non-disclosure agreement) with your new partner. This is vital to protect your original design, idea, or patent. Here is a copy of the NDA template we are using. You can refer to our file to make yours.
2. Product idea, Design, Function
After signing an NDA, you are secured to share your product design ideas with your manufacturing partner. Now you can explore the manufacturers professionality, whether they are capable of doing your job right and precisely.
1. You have your own design solution ready to use.
You may already have a ready-to-use ID for your device. This means youve gone far enough. The only thing left is to find the right manufacturing partner to bring it alive. In this case, you can move forward to the next step.
2. You have just ideas or sketches.
In most cases, customers came to us with just ideas or some rough sketches. Dont worry. Our ID designers will help you make a creative design based on your rough ideas or sketches.
3. Costs
Once you are settled with the rough design ideas, you can talk about numbers with your manufacturing partner.
The cost of making a new beauty device usually includes Design cost and Molding cost. Design cost varies. It depends on whether you have your own ID design solution or not. Molding cost is something you must invest in. Whatever your beauty device will look like, it will have housing. No matter if it is metal or plastic, you need a mold to make the housings.
As to the unit price of your beauty device, at this step, you will only receive a rough evaluation from your manufacturing partner, since most of the details are not confirmed.
4. Timing
Better to make clear your timeline before initializing the project. Both you and your manufacturing partner have to follow a practical timeline. The timeline guides the project to run efficiently. Everyone involved shall follow this timeline to carry out every step.
Here is a timeline of one of our previous projects.
Design 21 days, exterior and interior design, engineering and electronics design, including communication and a few rounds revisions.
Molding 62 days, including 3 revisions, T0 and T1 sampling
Pilot run production 15 days
Mass production 33 days
5. Terms
Terms include Payment term and Shipping term.
You need to clarify Payment terms and Shipping terms with your ODM beauty device manufacturing partner.
The payment term has two parts, R&D (including molding) and mass production. First, R&D cost, normally we request a 50% deposit and 50% balance when mold is ready. Second, mass production, 30% deposit, and 70% before shipment.
Shipping terms are the so-called FOB, CIF, EXW, DDU, DDP, etc. It depends on how you would like your order to be shipped.
6. Contract
Now everything is cleared. Its time to sign a contract. You shall include all the details discussed and agreed upon in a formal contract. The project can be kicked off now.
7. Factory audit
It is always necessary to have a factory audit or inspection. There are a few ways to implement an inspection.
1. You can fly to China and meet with your manufacturer face to face, and make an inspection by yourself. However, in the current pandemic situation, traveling among different countries is not easy.
2. A video conference via Zoom or Skype can be an option so that you can visually check the facilities and capabilities of a partner.
3. Inspection by a third-party QC company is the best solution. They will do the inspection more professionally.
8. Payment
After all these efforts, you are about to bring your beauty device alive. Pay the deposit to your manufacturer partner to activate the project now.
Step 5: Development Process of a Beauty Device Project
The development of an ODM beauty device includes the following processes.
1. Design
Product design includes exterior design, interior design, and packaging design. Understanding this will help you better communicate with your beauty device supplier on your needs and requests.
Exterior design decides how your beauty device looks like.
The interior design fulfills its functions.
Packaging design attracts customers attention to your beauty device. And demonstrate your brand image to your customers.
Sometimes you have to choose what to sacrifice or what to insist on in each part. Because there shall be a balance among design, function, cost, etc. Good ideas are not always able to be fulfilled at a reasonable cost. Or it is barely able to be carried out with current technologies.
2. Molding
3. Sampling
T0
T1
T2
T3
4. Pilot Production
5. Mass Production
6. Quality Control
7. Shipment
Conclusion
In this article, we shared with you how to develop a home-use beauty device from scratch for your own brand. We hope you find it helpful for you to grow your business and profit.
Lets have a quick review of the whole process in the end.
To make a successful project of your own ODM skincare device, follow the below steps.
Step 1: Setting up your project
Step 2: Find a Reliable Manufacturer
Step 3: Manufacturer Assessment
Step 4: Negotiation with Your Manufacturer Partner
Step 5: Development Process of a Beauty Device Project
And you can refer to the forms and documents we shared in this article to better manage your ODM beauty device project.
Finally, we look forward to creating unique beauty devices together with you.
Write to us with your requirements now, please!
Thank you.
https://www.rhafine.com/contact/
If you want to learn more, please visit our website ODM Face brush manufacturer Company.