What can you do to intelligently enter a product into the market without having to build everything from the ground up/using up too much cash? Firms at both ends (start-ups to multinationals) are constantly requiring efficient and lean manufacturing systems, which allow them to optimise overhead expenses and maximise their product differentiation and quality.
Perhaps one solution that is bringing new life to the manufacturing world is ODM: Original Design Manufacturing. This model is a very attractive and apt alternative to the traditional OEM (Original Equipment Manufacturer). ODM, basically, provides end-to-end product design and manufacturing capabilities under a single roof.
A leading Original Design Manufacturer in India, like Cubein, assists clients (also international) with their ideas through precision, agility, and at an affordable cost. In this blog, we are going to understand what ODM is, how it is different from OWM, and why it might be a smarter option in the development of your next product.
Understanding Original Design Manufacturing
Original Design Manufacturer (ODM) undertakes both designing the products and manufacturing them. Unlike OEMs, who manufacture products according to a design of client, ODMs provide complete product designs that a company can brand and register as its own products.
The aspects of this model are widespread, especially in the following sectors:
- Consumer electronics
- Home appliances
- Wearable tech
- Smart devices
- Health & wellness products
- Automotive components
Under ODM, customers shorten time to market, minimise the R&D expenditure, and make use of the engineering and design skills of reputable manufacturers.
Why ODM Matters?
In 2024, the global EMS & ODM (electronics manufacturing services and original design manufacturing) market was estimated to be about USD 805.7 billion, and it is predicted that this figure will increase to around USD 857.95 billion in 2025. The growth trend will be about 6.09%, which is quite unexpected considering the period of improvement within the year 2025.
In the larger ODM category, the Original Design Manufacturing market was projected to be around USD 500 billion by 2033. Overall, throughout the decade, the market was expected to increase steadily.
These numbers reflect the sheer size and pace of ODMs throughout the world. It is thus a strategic option that businesses can use to grow at a high level within the shortest time economically.
ODM vs. OEM: What’s the Difference?
OEM vs. ODM models are different, yet many businesses mix up the two models. To unravel this, let’s get a snapshot comparison:
Design Ownership: In OEM, design is owned by the client, whereas in ODM, design is owned or developed by the manufacturer.
Customization: Customization is high in OEM beacuse of client specifications. In ODM, customization is moderate to high, on the basis of the ODM template.
Time to Market: The time to market is longer in OEM because of R&D, and quite quick in ODM due to pre-existing designs.
Cost: OEM costs higher, as a result of design costs, and ODM costs affordable due to amortized design over several clients.
Intellectual Property: In OEM, intellectual property belongs to the client, whereas in ODM it is generally owned by ODM unless negotiation is made.
For a more detailed guide, click on: OEM vs. ODM: Which Is Right for Your Business?
Top 7 Benefits of Original Design Manufacturing (ODM)
1. Accelerated Time to Market
Time is actually the biggest asset. ODMs enable rapid prototyping and an immediate speed of scale with the pre-developed design and platforms. This can be a game-changer for businesses that target seasonal releases or target markets that are trend-sensitive.
For example, Cubein has managed to cut time-to-market for tech startups by over 40%, simply by ensuring tight workflows via ODM workflows.
2. Lower Costs of Product Development
Products have to be developed, and this would mean a lot of investment in research and development, prototyping, testing, and certifications. These costs are highly reduced by ODM manufacturing, which offers already tested designs that can be adapted.
ODMs are perfect for:
- Numerous startups manage their research and development with limited financial resources.
- E-commerce brands that want to diversify their product line.
- Firms that need to experiment with new concepts with a low-risk factor.
3. Availability of Specialized Expertise
By teaming up with an ODM, you will get access to a network of engineers, designers, compliance, and manufacturing specialists all in-house. You do not have to invest in developing an in-house team; thus, you tap into the profound expertise of experienced practitioners.
Trusted ODMs like Cubein have tooling and in-house research & development experts, which offer:
- CAD designing services
- Mold engineering
- Firmware integration
- Guidance on regulation compliance
4. Scalability and Risk Management
ODM manufacturing can scale with ease using economies of scale, as demand increases. ODM partners also share manufacturing risks, so that you can concentrate on brand, sales, and marketing.
ODMs support a wide diffusion of production quantities, which is ideal when conducting pilot work, small production runs, or mass production. This flexibility has permitted businesses to expand without vendor replacement.
At Cubein, we have an Indian facility that has the capacity to manufacture MOQs (as a minimum) of 500 units with a capacity of 100,000+ units per month, depending on the enterprise’s needs.
5. Less Complexity in Supply Chain
An ODM partner undertakes the design and manufacturing process itself, i.e., there is no need to contact additional employees, and there is no miscommunication or unnecessary workflow interruptions. This makes logistics, vendor management, and quality control easy.
Your full supply chain becomes their responsibility, be it sourcing materials, assembling products, and overseeing inspections. This enhances your concentration on branding and sales.
6. Improved Quality Assurance
ODMs typically design base products on behalf of numerous customers, and thus, they have a great motive to ensure high standards of quality and compliance. This established process and mature quality control systems are a benefit to you.
A top-class Original Design Manufacturer offers:
- Quality management systems that have received certification in accordance with ISO standards.
- In-line and end-line inspection of quality.
- Automatic testing procedures.
- Complete traceability from components to shipment.
7. Brand Differentiation Opportunities
Although ODMs supply base designs, they also offer plenty of customization, design tweaks, packaging, firmware, and even new features. In this manner, you can end up with a differentiated product without reinventing the wheel.
A quality Original Design Manufacturer in India provides exclusive surface finishing, personalised UI/UX, joint packaging of products, with custom user manuals.
Concluding Thoughts: Is ODM the Right Choice?
In the case when your objectives are to cut R&D expenditure, accelerate the development of products, reduce overheads by economies of design, and access established production methods, then ODM is the apt choice.
Cubein is your premier Original Design Manufacturer in India, assisting you in transitioning from design to market.
| Willing to work with the ODM Leader in India? Contact Cubein now! |
FAQs
1. What is OEM vs. ODM?
In OEM vs. ODM, an OEM simply manufactures based on the design of the client, whereas an ODM not only designs the product but also manufactures it. The ODMs have quicker production at reduced R&D expenses.
2. Who owns the product design in an ODM partnership?
In most cases, the design rights are kept by the manufacturer unless otherwise agreed upon. Nonetheless, the personalization and the labeled private are still applicable.
3. Is ODM appropriate to start up businesses?
Yes, ODM would be most suitable with startups because of low development costs, the quicker realisation period, and the possibility of perfecting markets with low expenditure.
4. What is the reason to prefer an ODM manufacturer in India?
India provides efficient and capable ODM production, which is government-subsidized, making it an attractive destination for global brands.
