What is apparel ODM? OEM difference

On this page, AGLUCA, which operates an apparel sewing factory,

・Those who are launching an apparel brand for the first time (beginners)

・Those who are considering requesting ODM from a garment factory for the first time.

We will explain ODM while comparing it with apparel OEM.

table of contents

What is apparel ODM?

Apparel ODM flow

Apparel OEN flow (reference information)

Differences and comparison between OEM and ODM

Advantages of ODM

Disadvantages of ODM

What is the ODM cost (outsourcing cost)?

Points to note when requesting OEM

What is apparel ODM (overview)

ODM ( English : Original design manufacturing ) is the outsourcing of the entire clothing manufacturing process, including planning and designing, to external companies.

Apparel ODM flow

1. OD M company plans clothes (creates prototypes)
2.OEM company proposes prototype (sample) to apparel manufacturer (brand)
3. If the clothes you plan and propose to an apparel manufacturer are accepted, we will mass produce them.
4. Sewing brand tags provided by the brand onto mass-produced clothes
5. Deliver mass-produced clothes (products) to apparel manufacturers (brands)

Apparel OEM flow (reference information)

1.Decide/prepare the clothing design
2.Determine the fabric, thread, zippers, buttons, and other secondary materials
3. Create a pattern (clothing blueprint)
4. Creation of sewing specifications
5.Sample (prototype) creation
7.Mass production

Click here to find out more about apparel OEM

ODM is to outsource all processes 1 to 8.

Market price and unit price for sample sewing and mass production

Pattern (paper pattern) creation cost

Differences and comparison between OEM and ODM

What is OEM?

Apparel manufacturers (brands) produce their own products in-house, using internal resources to select clothing designs, fabrics, buttons, and other auxiliary materials, and in some cases, outsource production (sewing), including patterns (clothing blueprints = patterns). This is called OEM.

In other words, product planning is done in-house, but production is outsourced.

What is ODM?

ODM refers to outsourcing everything from clothing planning and design, fabric selection and procurement to production.

Advantages of ODM

Planning a single piece of clothing takes a considerable amount of time, including researching the market, holding internal meetings, creating patterns, selecting and procuring fabrics, and creating samples (prototypes).

1.Resolve the lack of internal resources

ODM allows apparel manufacturers (brands) to design and produce clothing without using many in-house personnel or man-hours (less man-hours than in-house manufacturing), allowing them to expand their product lineup with limited manpower.

2. Obtaining a new perspective

This is not limited to clothing design, but when discussions, research, and meetings are held only within the company (with the same team members), ruts and blind spots are created. By bringing external planning and design into the company using the ODM method, in-house planning can become dynamic and breakthroughs can occur.

Disadvantages of ODM

As mentioned above, the time-consuming "planning" of the clothes is outsourced to an outside company, which increases costs by the amount of man-hours involved.

It is rare for apparel brands to have prices that vary by double or triple depending on the season or product, and each brand should have a certain price range. ODM costs more (lower price) than products designed in-house, but the selling price (upper price) cannot be increased by that much, and the profit margin is lower compared to products designed in-house.

What is the ODM cost (outsourcing cost)?

1. A case where costs are calculated by estimating all the man-hours involved in planning, designing, patterns, samples, and mass production of clothes.

2. Costs for fabrics, secondary materials, and sewing will be calculated and paid as usual in the same way as for OEM production, and costs for "market research, clothing planning/design, and sample production" will be revenue share (●% of sales will be paid) case to

There are 2 types.

I get the impression that ODM in the apparel industry tends to be based on a revenue sharing model.

→Sewing unit price for sample sewing and mass production (price list)

Points to note when requesting ODM

Since it is supported by a revenue sharing model, it is assumed that the apparel manufacturer (brand) has an established sales channel (physical stores or online).

In other words, as long as you make clothes that sell, the premise is that there is a foundation for customers to learn about your products and buy them (there are customers).

If you go to great lengths to plan and design a product and it doesn't sell (though there may be a problem with the design itself), you won't be able to recover the costs of research, planning, design, and sample production.

Although AGLUCA is a sewing factory, we can also handle ODM. We also help individuals, sole proprietors, and small businesses. We also accept small lots (men's and women's).

→We are a sewing factory that helps launch apparel brands.

Please contact us https://agluca.com/pages/contact