In the cosmetics and dietary supplements industry, terms like OEM, ODM, and OBM are no longer unfamiliar to businesses, startups, or individuals looking to build their own brand. However, many still confuse these three models. This article will clarify the definitions, advantages, disadvantages, and the most popular trends in Vietnam today.
1. What is OEM?
OEM (Original Equipment Manufacturer) is a production model in which the manufacturer produces products based on the client’s formula and design. In this model, the client:
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Provides the formula (or product idea),
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Supplies packaging and labels or designates a supplier,
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Builds their own brand and marketing strategy.
Advantages of OEM:
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Suitable for businesses with their own R&D team and clear brand direction.
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Full control over creativity and input quality.
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Cost-effective compared to building a factory.
Disadvantages of OEM:
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Heavy reliance on the contract manufacturer.
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Requires technical expertise and legal knowledge to ensure compliance.
2. What is ODM?
ODM (Original Design Manufacturer) is a turnkey solution where the manufacturer handles everything from R&D, formula design, production, to packaging and product registration. Clients only need to choose the product and build their brand.
Advantages of ODM:
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Saves time and resources in product development.
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Ideal for startups and businesses that want to launch products quickly.
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Easy to expand product lines.
Disadvantages of ODM:
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Limited customization options.
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Risk of overlapping formulas with other brands (unless exclusive rights are purchased).
3. What is OBM?
OBM (Original Brand Manufacturer) is when a company owns both the factory and the brand, managing everything from production to marketing.
Advantages of OBM:
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Full ownership of product quality and brand identity.
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Higher profit margins and competitive edge.
Disadvantages of OBM:
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Requires significant capital investment.
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Demands a strong professional team from R&D to marketing.
4. Which Model is Most Popular in Vietnam?
In Vietnam’s cosmetics and dietary supplements industries, ODM is currently the most dominant model, especially for:
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Startups without R&D capabilities,
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Individuals running online businesses or personal brands,
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Distributors looking to expand their product ecosystem without building factories.
Market reports highlight that leading manufacturers like IMC – International Medical Consultant Co., Ltd., with GMP, CGMP-ASEAN, and FDA-certified factories, are providing comprehensive ODM services, helping hundreds of brands successfully launch products.
Choosing the Right Model for Your Business
The choice between OEM, ODM, and OBM depends on your business goals, resources, and brand strategy.
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For startups: ODM is the best starting point – cost-effective and fast to market.
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For established businesses: OEM or OBM offers long-term brand strength and differentiation.
IMC – Your Trusted Partner for OEM/ODM/OBM Manufacturing
With more than 20 years of experience in healthcare, cosmetics, and dietary supplements manufacturing, IMC offers:
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GMP & ISO-certified factories ensuring international quality,
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Comprehensive OEM/ODM services from R&D, formula development, packaging design, to product registration,
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Expertise in local & international markets, helping brands go global.
📞 Contact IMC today for OEM/ODM/OBM consultation.
Hotline: 0911 818 018 (Zalo)