When launching or scaling your fashion brand, picking the right manufacturing partner is a crucial decision. For most brands, this choice comes down to selecting between an ODM clothing manufacturer and an OEM manufacturer.
But what’s the difference, and how do you know which is the right fit for your business?
This post breaks down these two manufacturing models to help you make the best decision for your brand.
What is an ODM Clothing Manufacturer?
An ODM clothing manufacturer is a term short for Original Design Manufacture – a business offering pre-designed products that can be customized to match your brand’s identity.
Their catalogue includes ready-made designs that you can tweak with your own logo, color palette, cuts, trims, and minor adjustments.
Partnering with an ODM clothing manufacturer is perfect if you want to hit the trifecta of saving time and costs while getting your fashion line to market quickly and affordably.
What is an OEM Clothing Manufacturer?
An OEM clothing manufacturer full regard is Original Equipment Manufacturer. Working with OEM manufacturing allows your brand to produce items based on your unique designs and specifications.
If you have a clear vision and need a manufacturer to woven your creative flairs into life, OEM manufacturing is the way to go.
Which is the best clothing manufacturer for your brand?
Key Differences Between ODM and OEM Clothing Manufacturers
Knowing the distinctions between ODM and OEM manufacturing models is crucial to choosing the best option for your fashion brand. Consider these points to guide your decision.
| Features | ODM | OEM |
| Design Involvement | ODM manufacturers handle most of the design process with honed experience in particular categories and silhouettes (for ex: cable knitwear, coats, embroidery, etc), making this ideal for brands with modest in-house design departments. | You have total control over every detail of your product, from the fabric to the fit. |
| Design Flexibility & Uniqueness | Customization options are more limited than with OEM manufacturing.
And since other brands can use the same designs as yours, it may be harder to attract customers pursuing distinctive pieces. |
Limitless customizations to reflect your exact visions. Since you’re creating original designs, your products will have better to stand out in the competitive market of fashion. |
| Cost Structure |
More cost-effective because the manufacturer handles the design and uses standardized processes.
|
Custom design and prototyping require a larger investment upfront |
| Speed to Market |
With ready-made designs, production is quicker, allowing you to launch your collection sooner.
|
Since everything is built from scratch, production can take quite long to finish the designs. |
Key Questions to Determine Your Manufacturing Strategy
What is Your Budget?
- ODM: How does the all-inclusive cost fit your budget? Are there extra fees?
- OEM: What are the costs for manufacturing your designs? How do they compare to ODM?
How Much Design Control Do You Need?
- ODM: Are you okay with the manufacturer handling designs? How much input do you need? Are the available customization options able to maximize your brand’s uniqueness?
- OEM: Do you need full control over design and specs?
What is Your Production Timeline?
- ODM: Can they meet your deadlines with their integrated service?
- OEM: What’s the timeline for design finalization and production?
What Level of Involvement Can You Commit To?
- ODM: Are you looking for a hands-off approach?
- OEM: Can you actively manage design and production phases?
What Are Your Quality Control Requirements?
- ODM: How does the ODM ensure quality? Are their checks adequate?
- OEM: How will you manage quality control?
How Important is Innovation and Design Expertise?
- ODM: Do they have experience with similar products? Do you need their design expertise and creativity?
- OEM: Are you focusing on executing your designs?
What Are the Terms of the Agreement?
- ODM: What are the terms for design ownership and exclusivity?
- OEM: What terms apply to design changes and IP protection?
Is There a Middle Ground? Combining ODM and OEM Strategies
In some cases, fashion brands don’t have to choose just one manufacturing model. You can mix ODM and OEM manufacturing to create a hybrid approach that suits different aspects of your business.
Here’s how it could work:
- Using ODM for Basic or Fast-moving Items:
ODM is a great option for producing essential items like t-shirts, hoodies, or accessories where customization isn’t as crucial. These are high-demand, fast-moving items that benefit from the speed and lower cost of ODM manufacturing. - OEM for Signature or High-End Collections:
For your mainline or flagship collection where originality and branding are key, OEM manufacturing ensures every design detail is unique to your brand. This approach allows you to reserve your creative energy and budget for your most important products while keeping other collections affordable.
Benefits of a Hybrid Approach:
- Cost Efficiency: Combining the two models allows you to allocate your budget where it matters most.
- Scalability: You can scale faster by using ODM for simple products and OEM for your signature items.
- Flexibility: This model gives you flexibility in production, helping you balance between speed and uniqueness.
Takeaways
In the fashion industry, selecting the right manufacturing model is essential to your brand’s success. Both ODM clothing manufacturers and OEM manufacturers offer unique benefits depending on your brand’s needs.
However, don’t forget the possibility of a hybrid approach, combining ODM and OEM to get the best of both worlds. The key is understanding your brand’s goals, budget, and production needs—and choosing a manufacturing partner that can meet them.
If you have come down with going forward with ODM manufacturing and are looking for the choices of the best clothing manufacturer with expertise in the outwear and activewear categories, reach out to us today to make your next launch a success!
