OEM

OEM is a term for a product manufactured by another company and relabeled by another. The practice is prevalent in clothing where every brand is manufactured by a central manufacturer. Cars are another OEM industry. Pontiac, the late Oldsmobile and Chevrolet are/were built on the same platform.

The idea is sending the same product through multiple distribution channels to maximize sales and minimize costs. Over time, it does erode brands. After all, there is very little difference.

In the appliance industry, OEMs are becoming almost the standard. Even super premium brands are starting to source their manufacturing....Lets look at this Viking refrigerator.



Same as this JennAir.



My feelings are mixed. On one hand, people can buy an all Viking kitchen for under $10,000, and the Viking logo is still very recognizable. At the same time, it is $600 more than the identical Jenn-Air.

So do you buy the label or the price?