China Makers Start De-emphasizing Oem Contract manufacturing remains China's export backbone, but an increasing number of suppliers are now taking more serious steps toward an OBM shift.China's efforts to boost design capability and international brand building are gaining steam.Transitioning from a contract manufacturing business model to one that emphasizes ODM and OBM has increasingly become a popular strategy during the past two years. Suppliers have realized how focusing on OEM can depress their bottom line and overall development. Not only are such companies often at a disadvantage in price negotiations,Ray Ban, but many of their products are also slapped with anti-dumping and anti-subsidy duties by importing countries.As with most developments in China's export manufacturing industry,Cheap Oakley Sunglasses, it is the large enterprises that have taken the first step toward reducing OEM's share of their business. But even they cannot stop receiving contract manufacturing orders completely as doing so could prove disastrous.For one thing, China brands are not likely to gain wide acceptance in traditional markets in a short span of time. Suppliers are instead easing out OEM transactions in emerging economies such as South America, Southeast Asia and Africa. They believe it is easier to promote OBM lines there as consumers in those markets are more conscious about price than established brands.One of the country's major manufacturers of massagers, Wenzhou Shengli Healthcare Equipment Co. Ltd distributes its iRest line to retail stores in the Philippines, India, Iran, Saudi Arabia and the UAE. The company has since stopped accepting OEM orders from these countries. OBM sales now contribute roughly one-third to total turnover.While refusing OEM orders could affect relationships with long-term clients and may reduce market share, Guangdong Galanz Enterprise Group Co. Ltd believes product choice is key. As long as the company can offer a range of innovative products at competitive price points, the brand can gain gradual market acceptance.Read the full report at Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers,Louis Vuitton Outlet, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.