Glossary · Business & Sourcing
What Is ODM?
ODM (Original Design Manufacturer) manufacturing means the factory designs the product as well as making it: you bring the brand and the brief, and the ODM delivers the formulation, packaging concept and production. In cosmetics, ODM suits brands that want a differentiated product without an in-house R&D team.
Why it matters when you source
ODM buys you formulation capability — the factory's chemists develop and validate the formula for your brief, which is slower and more involved than OEM but produces something competitors cannot simply reorder. It is the right mode when the formula itself is your positioning.
Continue reading
- Private label vs OEM vs ODM: cost, MOQ, timeline →
- Reverse engineering a competitor formula (with NDA) →
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