OEM and White Label: Two Core Models in Global Trade

In today’s globalized manufacturing and trade ecosystem, OEM (Original Equipment Manufacturer) and White Label are two of the most common and essential cooperation models. Whether in pharmaceuticals, health supplements, cosmetics, daily necessities, or food products, companies aiming to enter new markets quickly, expand product categories, or enhance competitiveness must understand the differences and applications of these two approaches.

1. What is OEM?

OEM refers to a business model where the brand owner is responsible for product research, development, and design, while production is outsourced to a qualified factory. In simple terms: “the brand owns the formula and design, the factory manufactures.”

Key Features of OEM:

High Customization: The brand can design products according to its market positioning and consumer needs, while the manufacturer produces strictly based on these requirements.

Clear Intellectual Property Ownership: The formula, technology, and trademarks typically belong to the brand, with the factory providing only production services.

Long-Term Strategic Value: OEM supports differentiated, premium products, helping brands establish strong market competitiveness.

Example: A U.S. R&D team develops an innovative health supplement formula but lacks production capabilities. It can commission a Japanese GMP-certified factory to produce the product, ensuring compliance with international standards while maintaining product uniqueness.

2. What is White Label?

White Label refers to a model where manufacturers produce standardized products in advance and allow different companies to rebrand and sell them under thir own labels. In short: “same product, different packaging.”

Key Features of White Label:

Low Entry Barrier: Companies do not need R&D or design; they simply purchase ready-made products and add their own brand.

Fast to Market: White-label products are usually proven, popular categories, ideal for rapid market entry or testing.

Cost Efficiency: Since R&D and production costs are shared across many buyers, the brand primarily invests in marketing and distribution.

Example: A skincare toner produced by one factory can be sold under multiple brand names in Japan, China, or Southeast Asia with different packaging but essentially the same formula.

3. Key Differences Between OEM and White Label

4. Choosing the Right Model

OEM: Best suited for brands with long-term strategies, unique formulations, and the goal of building lasting brand equity.

White Label: Ideal for startups, small businesses, or e-commerce players who want to test markets quickly or expand product lines with minimal investment.

In practice, many companies combine both models: using White Label to test demand and sales channels, then moving toward OEM once they build a customer base and need product differentiation.

5. Chiundo’s Value Proposition

As a company experienced in cross-border e-commerce, OEM/ODM cooperation, trademark and intellectual property management, and GMP consulting, Chiundo Co., Ltd. is uniquely positioned to:

Connect clients with Japanese GMP-certified factories and top-quality manufacturers.

Provide OEM customization services to develop differentiated, compliant products.

Offer White Label product access to help clients quickly enter online and offline retail markets.

Support clients with customs clearance, logistics, and compliance filing, ensuring smooth market entry across Asia and beyond.

Conclusion

Both OEM and White Label models have distinct advantages, and they are not mutually exclusive. OEM emphasizes uniqueness and long-term brand value, while White Label prioritizes speed and cost efficiency. In today’s highly competitive global market, businesses must carefully align these models with their growth stage, market positioning, and strategic goals to achieve faster growth and successful global expansion.