In this model, the factory is no longer a faceless, but a symbiotic combination with the brand side. Different from traditional OEM production, factories upgraded to the ODM stage not only have to lead product production, but also participate in product design. When enterprise capabilities have not yet covered the entire industrial chain such as product design, production,
marketing, and sales, staged accumulation of skills can not only achieve technological deepening, but also help enterprises improve their status in the industrial chain. At present, ODM e-commerce companies often select high-quality manufacturing enterprises at home and abroad, and rely on their sms marketing service ideas of R&D and design for first-line brands to produce products with high quality and low price in line with their own brand tonality. Such as Taobao Xinxuan, Beijing Tokyo Made, Xiaomi Youpin, etc. are all followers of the ODM model. In terms of marketing, these e-commerce companies often advertise that "factories go directly to consumers, excluding brand premiums".
This model is in line with the new middle class's dual pursuit of quality and cost-effectiveness, but it often attracts controversy because of the practice of playing well-known brands. 3. TOP Factory Brand Incubation: NetEase Koala Factory Store TOP manufacturer, factory own brand, one-stop babysitting service factory does not need to operate.