Note: This article is one I wrote previously and posted on the Guangtan and Desheng forums. Later, Guangtan was shut down, and a version restoration on Desheng also lost several years' worth of articles, including this one, so it's essentially impossible to find online. However, there are now many radio enthusiasts on HamCQ, and I am re-posting this article for reference and correction purposes.
Radio equipment customization and OEM manufacturing
2016-03-12
Some new radio enthusiasts have noticed that the appearance and functionality of a domestic product closely resemble those of a certain foreign product, differing only in brand and model. They naturally assume that one of the two must be a "fake" or imitation. However, experienced players would explain to them that the two products are actually the same, but that the foreign version is a rebranded or OEM (Original Equipment Manufacturer) version of the domestic product. So, why does this phenomenon exist in the radio industry? What are the differences between rebranding and OEM manufacturing?
In fact, OEM (Original Equipment Manufacturing) and contract manufacturing are the inevitable results of the fine division of labor in modern enterprises. The emergence of these models is closely related to factors such as rapid technological innovation and intense market competition. From manufacturing to services, OEM and contract manufacturing models have been widely adopted. The radio industry naturally follows this general trend. Brand owners commission manufacturers to design or process products, achieving the goals of reducing R&D costs and quickly occupying the market; manufacturers leverage their professional technical or human resource advantages to save marketing and branding costs. Both parties complement each other, achieving mutual benefit. However, the radio industry also has its own characteristics: traditional radios, which are commonly seen as household appliances, are increasingly viewed as being in a period of decline. Established appliance manufacturers such as Philips and Sony have already reduced or adjusted their radio business. Traditional radio R&D and manufacturing giants like Grundig and Panda have long leveraged their existing brand advantages to expand into new product areas, even undergoing complete transformations to regain vitality. Today, the main driving forces for progress in the radio industry are small, specialized radio manufacturers that serve niche users such as radio enthusiasts, such as Tecsun and Sangean, as well as research companies that provide core technologies such as Silicon Labs and Frontier Silicon. The separation of market, brand, technology, and human resources makes this so-called declining industry necessary to adopt modern production models for cooperation in order to survive and develop. At the same time, radio technology and the market are not static; the emergence of digital broadcasting and satellite broadcasting technologies in recent years, along with the widespread use of private cars domestically, has created new growth opportunities for the radio industry. This emerging industry faces challenges such as technological and financial gaps during its initial growth phase. Potential beneficiaries, such as broadcasters and satellite operators, have become the drivers of new technology and pioneers of new markets; OEM and contract manufacturing have also become a choice that offers both cost and efficiency advantages in this process.
Some people broadly refer to products that are the same but have different models as "OEM" or "private label" products. However, this is not entirely accurate. "Private labeling" and OEM are two distinct cooperation models. "Private labeling" typically refers to ODM (Original Design Manufacturer) mode, where the brand owner specifies the product requirements, and the manufacturer completes the design and production. The product bears the brand owner's trademark and is sold by the brand owner. Without a specific agreement, the intellectual property rights of the product technology belong to the manufacturer. If the brand owner does not purchase the entire product, the manufacturer can sell the same product under its own brand or provide it to other brand owners for private labeling. Common examples of private-labeled products include computer peripherals, such as Logitech mice that are often manufactured and branded for brands like Lenovo and HP. This typically does not affect Logitech's sales of the same model mouse. "OEM" usually refers to OEM (Original Equipment Manufacturer) mode, where both product requirements and design specifications are provided by the brand owner, while the manufacturer completes the production. The product also bears the brand owner's trademark and is sold by the brand owner. In general, the intellectual property rights of the product technology belong to the brand owner. Without the brand owner's permission, the manufacturer cannot sell the same product under its own brand or manufacture it for third parties. Common OEM products are mobile phones manufactured in Chinese factories for foreign companies, such as iPhones, which are designed and developed by Apple and manufactured by Foxconn. Foxconn does not share Apple's technology patents and cannot use its own trademark to sell the same iPhone. Of course, in reality, there is no strict distinction between private labeling and OEM models. Brand owners and manufacturers can have various cooperation agreements on technical and market aspects, which can blur the lines between private labeling and OEM. As a major manufacturing country, Chinese manufacturers often act as producers in international ODM or OEM collaborations, while gradually accumulating technological capital and enhancing their independent research and development capabilities by leveraging their cost advantages.
In the radio industry, there are several scenarios for OEM (Original Equipment Manufacturer) models. Sometimes, a foreign brand requests bids from Chinese manufacturers, while other times, Chinese manufacturers proactively seek partnerships with foreign brands. OEM models can be existing domestic models that have been refined, new models customized or modified to meet specific brand requirements, or pre-developed models specifically designed for potential OEM needs. The early DE110X series from Degen was an in-house developed model sold under its own brand domestically. American Electrical Company's Katio introduced this series of radios into the US market, exchanging it for the Katio brand and KA110X model sales. These exported models were adjusted to meet specific US broadcast frequencies and power voltages. The PL-360 model developed by Degen was initially used as a GP5 DSP model for CountyComm, a US government services provider, and entered the US market. Later, under the requirements of government contracts, CountyComm requested single-band solutions from both Degen and chip supplier Silicon Labs.（SSB）Receiving the demand, De Sheng developed a GP5 SSB model with CountyComm branding based on the GP5 DSP. At the same time, De Sheng also sold the PL-365 model under its own brand in Australia and other locations. Full-join Company, located in Shenzhen, is a DAB digital radio manufacturer that has developed several DAB products but does not widely promote or sell them under its own brand. Instead, it seeks partnerships with brands on B2B websites and sells sample models on B2C and C2C websites. The PPM001 model was introduced by Nevada, a UK radio equipment retailer, and the KAOS PDR1 model is sold in overseas markets.
Contract manufacturing is also common in the production of radios. Many radio products from Grundig and its North American distributor, Etón, were manufactured by factories in mainland China. In the 1990s, some of Grundig's products were designed internally or by Taiwanese partners, and then produced by Panopus, a domestic company. Panopus did not have core technology and imported production lines; after attaching the Grundig trademark, the products were delivered to foreign companies for sale. However, there was also an agreement between the two parties: Grundig granted Panopus permission to sell certain models under its own brand in the Chinese market. For example, Panopus's R-97T is a domestic version of Grundig's Yacht Boy 206. Many contract-manufactured radios, like iPhones, printed phrases such as "Designed in USA, Assembled in China" on their casings or packaging to emphasize their supposed high quality. However, not all radios with these phrases are manufactured through contract manufacturing; they may also be Chinese-designed and manufactured products with a private label. Foreign brand companies may do this for market strategy reasons, and the actual design participation is likely limited to appearance. For example, some Katio products with similar labels were developed by Dekina. Even if a radio claiming to be designed abroad only has an export model but not a domestic model, it cannot be determined that it is manufactured through contract manufacturing; it is more likely a private-label product purchased by the brand company. For example, Grundig's G5 and G3 products were sometimes considered to be designed by foreign companies and manufactured in mainland China, but evidence shows that they were primarily designed by Dekina and then purchased as models. After modifying the appearance and function of the product, Grundig sold it under the DE1106 model domestically.
Besides licensing and OEM, there are also examples of collaboration in the radio industry, including joint design and multi-brand sales. The classic HAM-2000 was jointly developed by Desheng and Gentek, with an agreement on knowledge sharing and market division between the two companies. Desheng's HAM-2000 model is targeted at the Chinese market, while Gentek sells the same product under the Satellit 800 brand in the European and American markets. Desheng also gained some technical expertise during the joint development process, which was demonstrated by its subsequent independently developed classic product, the S-2000. The European and American versions of the S-2000 – Gentek's Satellit 750 – can be considered a licensed product.
闽ICP备2021006864号-7
闽公网安备35020602002794号