To bring consumers the best quality products, businesses must choose a reputable manufacturer with first-class production lines and services. There are different approaches to manufacturing, one of them is OEM manufacturing – which is a great way to minimize production cost, have the exclusive rights to designs, and experience high-quality services.
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The OEM business method is quite popular all over the world with many well-known businesses adopting it. So what does OEM mean? OEM is the term for “Original Equipment Manufacturer”, often used to refer to companies specializing in the production process, based on the design and specifications ordered by their partners. Simply put, the OEM company will produce and manufacture for another company.
These products will be under the brand name of the ordering company when placed on the market.
OEM can be mistaken with ODM, which stands for “Original Design Manufacturer” – refers to companies undertaking the design and construction of required products. ODM companies will help you turn ideas into real designs if you have trouble with it. ODM businesses engage with the design and production, while OEM manufacturers will only participate in the actual manufacturing process and create finished products.
A company that implements OEM manufacturing can apply many business ideas, and at the same time can implement many products to increase diversity, allowing them to penetrate the market and reach the customers quickly and more optimally. In addition, OEM manufacturers allow ordering businesses to retain copyright and intellectual property for all of their designs. Therefore, customization is in your control.
Another advantage of OEM manufacturing is the reduction of costs in factories, cumbersome processes, and procedures. By utilizing OEM, you are outsourcing the expense of production which also leads to output at cheaper prices while maintaining high quality and focusing on core operations.
You can get access to new technology and professional service that the original equipment manufacturers develop. Therefore, products will be improved in design and quality without you having to own them. However, businesses applying OEM should pay attention to choosing reliable and reputable businesses to avoid litigation for stealing technology and ideas.
Although ordering businesses do not have to build factories or manufacture products directly, they still have to spend a lot of money on idea development, market exploration, and research. These new designs and ideas are then presented to the OEM company. Moreover, the expenses on details and customizing brand identity are also among the additional costs that you have to think about.
OEM manufacturers will have to manufacture products at your disposal, with the technology and developments created by your own company. Therefore, they need a large number of orders to be able to customize their production lines and labor force according to your requirements. To enhance capital expenditure and technical understanding, the minimum quantity of products and orders placed must be high.
With OEM in garment production, OEM manufacturing businesses will actively participate in the production process and have autonomy in input materials, from purchasing raw fabrics to finishing the final products. They will source raw materials and use their technology to make the best garments and textiles. Design, quality, and technical requirements are listed by the orderer and provided to the OEM business.
The main advantage of choosing OEM in clothing production is that the designer retains total creative control. Therefore, the designs, prints, layouts will be customized by the OEM manufacturer to your likings.
With OEM in garment production, OEM manufacturing businesses will actively participate in the production process and have autonomy in input materials, from purchasing raw fabrics to finishing the final products. They will source raw materials and use their technology to make the best garments and textiles. Design, quality, and technical requirements are listed by the orderer and provided to the OEM business.
The main advantage of choosing OEM in clothing production is that the designer retains total creative control. Therefore, the designs, prints, layouts will be customized by the OEM manufacturer to your likings.
>> For further reading, check out our article: Thygesen Vietnam – Your Trusted Clothing Manufacturer Partner For A Seamless Experience
Vietnam is a favorable environment for garment production and processing, replacing China. The garment industry in Vietnam accounts for 16% of the country’s GDP, with more than 2.3 million workers by the year . Therefore, garment and textile production is always a top priority in economic development in Vietnam. There are many big fashion enterprises in the world such as GAP, Nike, Mango, etc. have chosen Vietnam for OEM production. Let’s take a look at some information about OEM manufacturing and the garment market in Vietnam!
>> Curious about the types of clothing manufacturer? Discover the key differences between OEM, ODM, and CMT to find the right fit for your fashion brand.
Firstly, it is the cheap labor force that Vietnam brings. Compared to China, you can find seamstresses, stitchers, mechanics, etc. with much less pay and wages. This will help businesses that place orders for OEM manufacturers in Vietnam to reduce their total spending so they can shift it to other segments and investments. Many businesses are making great efforts to be able to localize materials, in order to reduce production costs.
Vietnam has participated in negotiations for the Trans-Pacific Partnership (TPP), as well as the Vietnam-EU Free Trade Agreement. This can promote cooperation between Vietnam and fashion businesses around the world. OEM manufacturers in Vietnam are able to produce high-quality products with compromised international standards according to orders, designs, and technologies.
>> For more information, you may refer to our articles about slow fashion clothing manufacturer
For OEM manufacturing, the lead time starts from the deposit of the fabric to the end of the production process. With the nonstop development and assembly line, OEM manufacturers in Vietnam can reduce the lead time to around 30-60 days with a full inspection and guaranteed quality.
>> In addition, Thygesen is also a reputable Vietnam hoodie manufacturer, you can refer to more information in our article.
It takes a lot of work to figure out the strengths and weaknesses of the manufacturing process before working with any OEM manufacturer. By doing this, the risks can be eliminated. Analysis and research about OEM, compare this approach to your business idea and product. This will help you understand factors such as the manufacturing process of your product, capital requirements, and minimum order requirements to see if OEM implementation is feasible or not. You also need to study the local policy to make sure you are doing it right.
Since ordering companies do not participate in the direct production process, you need to understand their business strategies and negotiate them with OEM manufacturers to make the best price for their products. Break down the costs and discuss how to optimize them to gain profits and success.
Some companies place orders from the West, while OEM businesses are located in Asia, it is necessary to closely monitor the pricing process, carefully at each stage.
In OEM manufacturing, lead time affects the entire process largely because it is all about the schedules and the replenishment of the products. It is important to accurately estimate the lead time from the early stages to avoid delays. Monitor the on-time production of OEM manufacturers to reduce lead times so you can bring your products to market quickly.
To have a clear look and evaluation of a product, it is necessary to ask for prototypes from OEM manufacturers. By doing this, design flaws can be identified from the early stage which can eliminate risks when it comes to mass production. Reliable prototyping will make the production more efficient and successful.
Many companies offer OEM packages with impeccable service from beginning to end. They even help you when you are having trouble with the design and finding the suitable materials, fabrics, and technology for your desired products. They even help you with shipping, collaborating with the FOB approach.
Are you in the first step of creating your clothing brand? And you are wondering which types of clothing manufacturers will suit your business. In this article, we explain the types of clothing manufacturers and the difference between them. Read on and follow up on advice from the team of fashion experts and consultants with in-depth knowledge.
CMT is the abbreviation for Cut, Make, Trim. When you know exactly how you want your outfits to look, this method of garment manufacturing is ideal. That is, you have determined the concept, size, classification, patterns, textiles, color, design, and printing. A clothes maker just performs three things: cut, make, and trim. Automatic fabric cutters, expert sewing, and quality control and quality control professionals are all desirable features of a clothing manufacturer that provides this service.
The cut is a very precise first step where economies of scale exist. For the sake of efficiency, you can imagine that we do not cut the shirts one by one, but that we try to bring them together by the model to cut all the fabric parts at the same time. Before tackling the cutting, it is important to know what the exact needs of this production are. In other words, always double-check the measurements, the quantities per size, as well as the measurement of each piece that will make up the shirt. This step is to avoid waste of fabric and money on a large order.
After the fabric has been cut and adjusted, the cut pieces go through our customization workshops. The different parts that make up the garment are then cut from the fabric and then assembled during different manufacturing steps.
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Before carrying out the manufacturing workshops, always have tested by launching “preproduction” to verify that each model will be correctly assembled. The manufacturers then assemble the parts to achieve the final product. This includes making the buttonholes, fitting the buttons, and all the operations involved in making clothing take shape
The trimming process is the last step of this clothing manufacturing process. It is also at this phase that a final quality check for your finished clothing. The finishing touches are applied, and the fabric is perfectly finished.
CMT Manufacturing process
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CMT is a more environmentally friendly alternative since it allows for more control over waste and the utilization of renewable resources. It is suitable for small businesses or startups. In addition, because you select the fabric yourself with CMT, you are not limited by minimums quantity, giving you more options, greater quantity flexibility, and cost savings.
Although this system is ideal for small enterprises and startups, it is not suitable for everyone. There are a few disadvantages as well. It’s impossible to predict when garment production may be delayed. Materials that have become detained in customs, or wrong delivery addresses are the most common things. Moreover, using a CMT to manufacture is usually the more expensive choice. It all adds up because you’ve paid for the textile, designs, shipment, import tariffs, and taxes. CMT manufacturers will have to outsource fabric dyeing, stitching, embroidery, and/or specialized labels, which will increase the cost and time. About custom trims, minimum order quantities are usually very high.
An OEM product is originally manufactured to the buyer’s specifications. All products with pre-selected sizes, colors, materials, functions, and designs are considered OEM products. Some view these products as purely buyer-based, and others as original but modified factory designs, no matter how minor the modifications. With OEM manufacturers, the company only needs to hire an outsource company to help them process, design, assemble and manufacture clothes. The OEM company’s production line can produce products for many different parties, thereby helping to optimize resources, costs, time,… for both customers and OEM companies. This is a win-win relationship.
OEM process
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OEM companies are gaining popularity among multinationals and startups. This business is very profitable because they can save a lot of money on bulk orders. In addition, you can find high-quality clothing products of all kinds at a lower price. All products are carefully tested by the manufacturers.
>> Additionally, if you want to manufacture locally, you can work with a domestic clothing manufacturer for better quality control and faster turnaround times.
The majority of companies outsourcing production to OEMs demand a certain quality, so it is hard to customize your products. In contrast, the majority of these suppliers provide samples to buyers before signing mass production agreements. The majority of OEM companies work for large orders, so you need to make large quantities, this means having a steady stream of customers to procure OEM services.
An original design manufacture product is based on the design of a manufacturer, this product can be the result of the research and development work of a supplier or a counterfeit product of another brand. You can put your logo on ODM clothing. Besides, ODM companies produce the kind of products you want. However, these kinds of suppliers benefit buyers because it is not always essential to design products and invest a lot of time in research and development.
You can take into the expertise of ODM companies that offer bulk product manufacturing for small businesses. There are two types of categories in the manufacture of ODM, the private label on one side and the white label on the other. Private label products are finished products that are sold to particular retailers. In addition, white label products are said to be generic and are sold to all kinds of retailers who will resell them under different brands.
ODM process
ODM production has an important advantage because it saves time and money by not having to design products and deal with R&D. By collaborating with ODM providers, you will be able to think about how to grow your business with their products. These suppliers often produce prototypes. Suppliers also offer cheaper products and since product design is not necessary, ODM may be preferable to OEM in some cases. Both are advantageous depending on what you are looking for first, price competitiveness or non-price competitiveness.
First of all, ODM manufacturers make and sell the same kind of products to several other companies, so it is difficult to stand out unless you choose a single supplier. Moreover, it is difficult to change suppliers because the design belongs to them. Second, these suppliers do not offer a wide variety of products. ODM suppliers may allow you to customize your products for wholesale orders but these will only be slight modifications.
A private label clothing is a product designed by a manufacturer, which is then taken up and redistributed by the brands, which market the product under their own identity. These brand will be able to buy “ready-made” products from a manufacturer’s catalog and then offer it is to their customers. These clothing products are often generic, easy-to-match styles that can be easily modified with brand logos and tags. During the manufacturing process, your brand label is added and the items become part of your company brand.
>> For more information, you may refer to our articles about slow fashion clothing manufacturer
With the private label, you won’t have to worry about producing the product you want to sell. There is already a producer who will take care of this. All you have to do is go buy this product and then brand it using the private label concept. Private label allows you to create the products you want without requiring a large budget.
You must ensure the quality of the products that you will put your logo on. If anything goes wrong, you can’t blame the manufacturer. Finally, think about any legal obligations you may face. Trading rules, trademarks, and patents are all complex worlds in which you do not want to get involved. Even words are susceptible to copyright, so tread carefully if you’re in the shadow of a larger brand.
So OEM vs ODM, which method is best for your business? The table below can give you some information to compare.
>> For more information, you may refer to our articles: Everything you need to know about 4 types of clothing manufacturer
In deciding between CMT and PLC products, there are several aspects to consider when deciding between these two manufacturing processes. When choosing CMT production, you have complete control over everything. Manufacturers only perform cutting, Making, and Trimming processes.
The PLC manufacturer is responsible for the entire process, from design to delivery to the point of Freight on Board (FOB). They provide all services such as design assistance, pattern making, grading, sourcing fabrics and components, sample, bulk production, packing, and freight forwarding. All you have to do is confirm the sample and agreement.
>> Explore our guide on Sourcing Clothing Manufacturers: Tips & Strategies to find the perfect partner for your fashion brand with confidence and clarity.
A private label clothing manufacturer is the ideal choice for anyone unsure about the technical elements of their clothing line. A clothes factory like this will provide you a variety of ready-to-wear options. All that’s left for you to do now is select your eye-catching logo for your brand.
Thygesen Textile Vietnam is not only an ODM, OEM, and private label clothing manufacturer but also a sustainable clothing manufacturer with certificates for the fabrics (OEKO-TEX, ISO, CE) and Social responsibility certificates (SA, WRAP, BSCI).
With a worldwide reputation for quality products and services, we believe we are the suitable manufacturer for all of your apparel brand’s demands. Especially if you’re searching for sportswear, casual wear, medical wear, workwear, or streetwear clothing manufacturers, we’ve primarily produced those items through the years.
Contact us now! The more detailed information you provide, the more accurate our price and lead time estimates will be. Keep in mind that our minimum order quantity (MOQ) for any size is 300 pieces per design. You’ll be even pleased to know that we stand out among the competitors as a genuinely ethical and sustainable apparel company.
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