February 2, 2010
What’s In A Name?
Sony, Nike, Gucci, BT, Microsoft, Ford, Armani… and so on, names we tend to come across in lifestyle, these are high “manufacturer brands”, then there are Tesco, Next, M&S, GAP, Burberry, Virgin etc, these are prime “retail brands”. Most of us are very familiar with these brands as we have seen them around for a while and have grown to trust them, we tend to apprehend who they’re and what to expect from their products.
It is also common apply for folks to become brand loyal too, i.e. you are trying and just like the merchandise of a complete and then stick to that whole, or buy a product sort of a Fuji digital camera and use a Fuji memory card to go with it. In fact, the brands actively encourage brand loyalty e.g. if you get an Epson printer, the corporate’s literature can encourage the use of Epson ink cartridges.
Several individuals are then surprised, to find out that their famous brand camera, watch, car, clothing, laptop etc, isn’t really created by the corporate whose name appears on the merchandise, but by another company they maybe have never heard of. This company is known as the OEM (Original Equipment Manufacturer) being the actual manufacturer of the merchandise which is sold below it’s own complete, or the whole of another company, usually using that company’s design, specifications etc.
Some OEM relationships are public knowledge e.g. Tesco do not produce instant low, thus, a second occasional producer makes Tesco instant coffee. Alternative OEM relationships are less obvious e.g. BT fax machines are largely created by Olivetti, early Hewlett Packard digital cameras were created by Pentax and 70% of the notebook computers sold in the world (Dell, Compaq, HP, Apple, IBM, Sony etc.) are made by Quanta Computers in Taiwan and MG Town Rover is created by Tata, the most important automobile manufacturer in India.
Several OEM relationships are well-kept secrets or a minimum of kept discrete and known only to trade insiders e.g. Dell and Lexmark, from 2002 Lexmark manufacture Dell inkjet printers, laser printers and connected print cartridges. Sony and Sandisk jointly develop and produce Memory Stick cards, which are sold below both brands etc.
Thus, is that this a good or unhealthy factor? Well, it’s a good factor for the patron because these joint collaborations drastically reduce new product development and production costs, ultimately this saving interprets into lower prices of merchandise for all of us. However, it is value bearing in mind, {that a} a lot of expensive brand might not necessarily be a better product, or perhaps any different to a lower priced product.
For our half at Mouse2House, we have a tendency to actively provide major complete products also different brands that in our expertise we have a tendency to have found to represent good or higher value.
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