In the field of cosmetics contract manufacturing, the three concepts of OEM, ODM, and OBM are often confusing. So, how exactly do we differentiate between these three? First, we need to understand the basic meaning of cosmetics contract manufacturing. Simply put, cosmetics contract manufacturing is a manufacturing model where a professional factory is entrusted with the research, development of formulas, and production of cosmetic products. In this model, the client entrusts the research, development, and production of the product to a professional contract manufacturer. OEM, ODM, and OBM are three different models within this contract manufacturing service. Although they all involve contract manufacturing and mass production of cosmetic products on behalf of the client, each model differs in the scope of services provided.

OEM, which stands for Original Equipment Manufacturer,

represents the OEM contract manufacturing model for cosmetics. In this model, the contract manufacturer mass-produces the product based on the cosmetic ingredients provided by the client, but does not participate in the design of the appearance or formula. In the OEM service scope, key elements such as product ingredient design, specifications, and packaging appearance are all determined by the client. Once the product has been tested and confirmed for mass production, the contract manufacturer will carry out large-scale production based on the detailed data provided by the client, and the client's trademark and logo will be affixed to the final product.

ODM, which stands for Own Designing & Manufacturing,

encompasses multiple aspects, including packaging design, formula design, and finished product manufacturing. Compared to the OEM contract manufacturing model, the ODM service scope is broader. In the ODM model, experienced contract manufacturers are not only familiar with the best ingredient choices for various cosmetics but can also provide unique and differentiated products that meet market demands based on client needs. In addition, the contract manufacturer provides professional advice and design assistance in areas such as packaging materials, ingredients, and packaging design, therefore the cost is relatively higher.

OBM, which stands for Original Brand Manufacture,

is another important model in the field of cosmetics contract manufacturing. It is dedicated to assisting clients who aspire to create their own brands, providing comprehensive support from the initial stages of brand building. This covers all aspects from market analysis and brand positioning to brand planning. The OBM model not only involves product design and mass production but also provides clients with professional marketing advice on pricing strategies and channel selection, thus becoming a powerful partner for clients in building their cosmetic brands.