It is no secret that IUIGA partners with Original Design Manufacturers (ODMs) to bring you premium products at low prices. Working with these ODMs is a key aspect of our business model. In the spirit of transparency, we would like to delve deep into ODMs and the wider Electronics Manufacturing Services (EMS) and ODM industry that is worth $500 billion USD worldwide.
Big Business: The ODM and EMS Industry
According to a report produced by market research firm Global Info Research, the global ODM and EMS industry is worth quite a fair amount. In 2017, the global EMS and ODM market was valued at about 508 billion USD and it is expected to reach 736 billion USD by the end of 2025. To put this into context, Singapore’s GDP was worth about 323.91 billion USD in 2017.
EMS and ODM companies provide design, raw material procurement, manufacturing, assembly and after-sales services for companies and brands. Many ODM companies are engaged in EMS business, and EMS companies are also involved in the design. As there is a lot of overlap in the services they provide, they are often classified together.
So What is an ODM?
Strictly speaking, an ODM is a company that creates new product designs and specifications based on the product idea brief provided by the client. Unlike EMS companies, ODM companies are involved heavily involved in almost all aspects of the manufacturing process.
These companies provide design, manufacturing, and other value-added services to original equipment manufacturers (OEMs).
As seen in the flowchart from Beroe, a leading procurement market intelligence firm this is how it works. The client company provides basic designs and specifications to ODMs who then conduct research and development (R&D) to design and prototype the product, manufacture the product and assemble and test the products. Essentially, ODMs create their own intellectual property and often file patents to protect it.
The existence of ODMS allows companies to get their basic designs and specifications made without having to deal with the research and development, commercializing of the product and the manufacturing process. Brands and companies than rebrand the finished products and sell it on the market.
This is different from contract manufacturers like Foxconn who manufacture iPhones. In this case, Foxconn was contracted by Apple who owns the intellectual property as they did the design and prototyping of the iPhone before sending it to Foxconn to manufacture.
ODMs and The Laptop Industry
This is especially prevalent in the global laptop industry. According to a report that was published about the Global and China Laptop and Tablet PC industry in 2012; about 94% of laptops available for consumers are made by a small number of ODMs based in Taiwan. These are some of the brands that these manufacturers sell to.
- Quanta: HP, Lenovo, Apple, Acer, Toshiba, Dell, Sony, Fujitsu and NEC
- Compal: Acer, Dell, Toshiba, Lenovo and HP/Compaq
- Wistron (former manufacturing & design division of Acer): Dell, Acer, Lenovo and HP
- Inventec: Toshiba, HP, Dell and Lenovo
- Pegatron: Asus, Toshiba, Apple, Dell and Acer
- Foxconn: Dell, HP and Apple
Moreover, ODMs don’t just operate in the electronics and technology industry. From fashion, home essentials to baby products you can find ODMs in many industries.
IUIGA and ODMs
Here is where IUIGA comes in. We searched high and low for these ODMs that to bring premium products at a lower price. The ODMs that we engage are big listed companies that also provide their products to premium brands like Samsonite, WMF, Uchino, Keyuca and more. Hence, the products we sell are not 100% identical but just as premium and differ in things like marketing, branding and the greatly reduced markups.
We are so confident in the quality of our products that we offer a 30 day 1 for 1 return period. There’s nothing to lose, so why not give us a chance?