Relative to the buyer, the supply side is in a relatively passive position, however, the use of OEM is still profitable.
1 enter the international market and participate in international competition
Domestic home appliances and other industries increasingly fierce competition, the market tends to saturation, some domestic manufacturers in order to develop the market, and to do OEM for foreign brands. Enhance the global awareness of the enterprise.
2 scale production and reduce costs
There is a general economic effect in modern production, that is, the trend of the unit cost decline with the expansion of the scale of output.. This may come from the deepening of the specialization of the division of labor, fixed costs of apportionment. If the enterprise itself exists in the situation of overcapacity, the effect of the cost will be more obvious.. Participation in OEM supply, means the expansion of the output scale, not only increases the product's market, but also reduces the cost.