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DOM Business Model: A New Way of Chinese Entity Industry
Date:9/3/2014

(PRWEB) September 03, 2014

Recently, HH Marketing Research Association, a professional research institute that provides market research reports, has released a new report explaining that DOM business model is a new way for Chinese entity industry. (http://www.hhdigital.com/archives/21)

The followings are a few key points of the report:

DOM (Design Original Manufacturer) Definition:
DOM is a business model that a manufacturer owns innovative and/or patented technologies, to produce products that are branded by the buying company and to build a win-win new business model in the industry. Intellectual property rights owned and/or developed by the ODM are used to distinguish the ODM from OEM and ODM.

In the commodity era, industry chain is divided into Research&Development – Production – Marketing. A smile curve is specially created to describe the industry chain.

It is known that R&D and marketing account for the highest portion, while production only get the lowest value in the value of the industry chain.

Being the world's factory, China has become a symbol of the lowest part in a smile curve. Once we mention China, something typical comes into our minds - the factories with all lights on, the roaring machines, and the obscure workers…

Back to a few years ago, Chinese companies produce products that designed and branded by buying firms, which is a main cause of professional name – OEM (Original Equipment Manufacturer). There'll be no patent without the technology of the product design. An example is Yue Yuen Holding Industrial Holdings Limited (00551.HK, in Dongguan, Guangdong, China), which is an original equipment manufacturer that produces footwear for international branded name companies such as Nike, Adidas.
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