What do the letters mean - RTM, OEM, Retail, VL in Windows versions? The difference between OEM supply and Retail supply

A certain company produces individual parts, and then transfers the components to the customer. The latter, and this is usually a well-known brand, introduces the received part into its products. Firms that are at the origins of the formation of final products are called OEM companies. What does this cooperation give to large corporations, and can small production associations sell products famous brands for yourself, read our article.

What does OEM mean?

It is foolish to assume that such large corporations as "Ford" or "HP" make all the components of the final product themselves:

Ford . Perhaps the company is capable of making cars using only its own production facilities for this, but this idea cost the corporation dearly. Instead, engineers and designers develop a common concept future model, and units that are not part of the concern, i.e. OEM companies provide the supply of certain parts. For example, Japanese KYB provides shock absorbers for cars. In relation to Ford Corporation, KYB is an OEM manufacturer.
HP . Consider an example from another area - IT-technologies. When you buy a computer built by HP, you find Windows on the hard drive. But Windows is a product of Microsoft, and HP has nothing to do with the development of this operating system. You guessed right - Microsoft in this case acts as an OEM.

Connection to production small companies OEM (Original Equipment Manufacturers), significantly improves the quality of manufactured products and reduces their cost. Thanks to such cooperation, the buyer buys the goods at a reduced price.

The percentage of sales increases and everyone wins: a large corporation, a small OEM company and the end customer.

OEM varieties

Over time, the term OEM has taken on two directions. Both of them are the product of partnerships between a large manufacturer and small firms, and the differences lie in the provision of the product to the final manufacturer:

Accessories . The assembled device contains parts manufactured by OEM. Example: The Philips iron uses a ceramic soleplate made by the Italian company Ballarini.
Rebranding . In this case, there is a resale of products under a different brand. Example: The German supermarket chain METRO Cash and Carry sells under own brand"ARO" hard cheese from CJSC "Karat".

In the first case, the OEM manufactures a single part, which, together with other components, forms the final product. OEM companies do not have the right to sell exactly such a component and sell separately: the part was developed by the customer corporation and has a patent.

In the second case, OEM is admitted to a developed distribution network on the basis of rebranding rights. The buyer will know about the real manufacturer if he reads the text printed in small print on the side of the box. The main logo, printed in the most prominent place on the packaging, represents a completely different brand.

Benefits of using

Many buyers, not understanding the concept of the OEM abbreviation, believe that the final product is a low-quality product. But it is not so:

Profitability . After the development of technical documentation, the manufacturer of the final product begins to analyze the market and looks for OEMs that meet the following criteria:
1. Experience. Applicants who are professionals in their field and have their own developments are considered.
2. Price. The price is mainly related to which country the OEMs are located in. If it is China, Taiwan or South Korea- the cost of the finished product will decrease.
Investments . The corporation does not invest in the development of a particular part, but uses the industrial sites of other companies. After changing the company's policy, you can start to cooperate with other OEMs. Thus, there is a minimization of investments, and this is a decrease in the price of the product.
The final price. A fast development cycle makes the final cost of the product for the buyer as acceptable as possible.

The advantages of using OEM in the final product are obvious: quality from OEMs proven over the years and the scale of sales of well-known brands from large corporations make the final product 20-30% cheaper, while the quality remains at a high level.

OEM and ODM: what's the difference?

The buyer must understand the difference between the two abbreviations often found on product boxes - OEM and ODM:

OEM . The manufacturer has all the technical documentation, and he refers to original equipment manufacturer for the implementation of certain nodes of the future product.
ODM . The manufacturer has a concept and wants the manufacturer to come up with an original design. For this, there are original ODM companies - original design manufacturers.

Surprisingly, the same company can act as OEM and ODM.

In the first case, the third party OEM indirectly obtains the customer's technology secrets. She will not be able to directly produce such products, but she will definitely try to use some ideas in her subsequent work.

In the second case, the ODM company will be able to expose its patent technologies to the customer.

Do you know that:

For iPhone production, Apple company uses Taiwanese OEM Foxconn.
From 2003 to 2004, the legendary IBM acted as an OEM for the Chinese company Lenovo.
As two directions, both OEM and ODM, for Windows Mobile are made by the company's Taiwanese engineersHTC.
Up to 30% of all Motorola-branded communicators are produced by third-party ODMs, and the American concern does not participate in their development at all.

We hope you have figured out such a mysterious term as OEM. What it is can be succinctly described: branded products famous brand issued production facilities not part of a corporation, or simply: OriginalEquipmentmanufacturer-original equipment manufacturer.

Parts production video

In this video, Leonid Sokolov will tell you what OEM is and how this concept differs from ODM:

Hello everyone, today I will tell you how OEM delivery differs from Retail delivery. Studying the prices of stores that mainly sell computer components and software, we all come across a postscript after completely identical names - OEM or RTL (Retail). And prices in these lines can vary significantly. What do you have to pay or sacrifice? Let's try to figure it out.

OEM (Original equipment manufacturer) in the official version - the designation by the manufacturer of the fact of assembling the product on the basis of third-party projects and components created by other companies. In fact, for the Russian market, the OEM abbreviation symbolizes the minimum configuration, intended in theory for product assemblers and further sales. As a rule, in Russian retail chains OEM products are on display next to RTL.

Retail- in translation from English it is “retail trade”. The abbreviation RTL means that the product is completely ready for use by the end user. In many countries, only this form is allowed for sale in retail outlets.

Since our market is not so scrupulous, let's look at both of these options in order to assess the benefits of the buyer, that is, you and me. The OEM supply is very modest: an anti-static bag if we are talking about components or electronics (maximum - a driver disk is added), or, in the case of software, a paper envelope with media (the same optical disk, most often). RTL delivery is more generous, although generosity is a relative term. But at least there is a box, instructions, minimum set accessories such as cables, bolts and adapters, depending on the type of product. If the product in the box is no longer OEM, so the absence of something necessary and important in the kit is on the manufacturer’s conscience.

The manufacturer's price for OEM and RTL is set differently, so we also see price tags on the windows, sometimes significantly different from each other. Thus, we pay for the box and a certain kind of ease of use. RTL is more expensive by default.

As a rule, the manufacturer does not give its warranty for OEM deliveries or gives it on special conditions. These obligations are passed on to the collectors and trade organizations. Concerning software, then technical support is provided by the developer, but license agreements are often valid only for a single installation option. Transferring OEM licenses is prohibited in most cases. Retail deliveries in this regard are much more loyal to the consumer.

It may also be significant for the end user that the OEM delivery, due to the lack of strong packaging, may more often be damaged due to the fault of the carrier. Moreover, it is worth considering Russian realities, where the OEM is often given a rejection or repaired in the service.

Outcome

OEM is always cheaper, the price difference can be up to 40%.
OEM is not intended for the end user, but this is ignored in the Russian market.
RTL is significantly richer in equipment.
RTL comes with a manufacturer's warranty and favorable license terms.
Theoretically, the possibility of marriage in the supply of OEM is higher.

Here are these OEM differences from retail.

OEM, Box and Kit, in short, the types of deliveries of goods to the consumer.

What to treat? Almost all products, but more often computer blocks and accessories, software (most often operating systems) to them.

Briefly, what is the difference? Complete and guaranteed. BOX and KIT - easy to connect and use at full power immediately.

One of the KIT options is a kit that has everything for self-assembly.

OEM - Original equipment manufacturer. This is an original equipment manufacturer - (like Windows (Microsoft) on ACER computers) a company that sells its product to other manufacturers as a component for their products, or a company that uses third-party components to create a product under its own label.

OEM bundling is usually the minimum required for assembly use: no additional materials and accompanying goods, in packaging without registration, guaranteeing only the safe transportation of goods.

In the Russian market of computer components and software, the OEM abbreviation means a product version in which the direct manufacturer does not work with the end user and does not provide support - the sellers of the goods are engaged in warranty service.

Due to the smaller dimensions and OEM configuration, products are 10-40% cheaper than products intended for retail sale (so-called retail).

The warranty for such a product may differ from the official one. In the case of software, OEM and retail versions may differ significantly in terms of license agreements.

Retail sale of OEM products is prohibited in some countries.

What is Box, Kit ?

Box and Kit is the delivery of a product ready and assembled for direct use, including on non-manufacturer platforms. For example - a processor with a fan and fasteners, with thermal paste already applied. Those. it remains only to insert into the nest.

If we talk about the completeness of the delivery of any equipment or software, then the Box (or Kit) version, most often, means the delivery kit, which includes everything necessary for the immediate use of this equipment or software.

With the obvious advantages of this type of supply, they also have disadvantages, the main of which is the high (compared to the OEM version) price. In this case, often, much of what is included in the Box delivery may not be needed in your particular case.

OEM example for WINDOWS:

What are OEM versions.

Microsoft software may come pre-installed with your computer. These versions of the products, intended to be shipped with the hardware, are called OEM versions of the products (OEM-Original Equipment Manufacturer).

What are the rules for selling OEM versions.

Unlike boxed products that have colorful packaging designed for display, OEM versions have brown cardboard packaging. The box may contain 1 or 3 separate OEM software licenses, depending on the product and shipping option.

Can the customer purchase the OEM version separately from the computer.

OEM versions of the software are for PC and server builders ONLY. They are not intended to be distributed to end users separately from computer hardware.

Features of using the OEM version.

Basic distinctive feature OEM versions are "locked" to the computer they were originally installed on and cannot be transferred to a replacement computer or any other PC.

What serves as confirmation of the legality of the OEM version.

A necessary confirmation of the user's license rights is a certificate of authenticity affixed to the PC case. For additional confirmation of license rights and purposes accounting We strongly recommend that you keep the packaging, information media (hologram discs if included with the product) and proof of purchase.

Information about the confirmation of the legality of each specific product is contained in the end user license agreement.

How often, getting acquainted with the assortment of a particular store and flipping through the price lists of trade organizations offering various products and components, we are surprised to stumble upon the OEM or RET mark and compare identical product descriptions with very different prices for them.

Why does this happen, how do seemingly identical products differ, and is the choice of a more expensive one justified? Let's try to understand what the delivery type RET means and how it differs from the OEM type.

Accepted world markings and their designations

The designation OEM (Original equipment manufacturer, i.e. original equipment manufacturer) in the global community means the actual assembly of the product by a specialized company from components produced by third-party companies. In today's conditions of the domestic market, this abbreviation has become a symbol of the minimum factory configuration, only theoretically intended for product assemblers and their subsequent sale. Although in Russian trading houses, products with similar markings are displayed side by side with goods marked with the RET sign (Retail - retail sales). This abbreviation means exactly the product, ready for retail and, accordingly, to the final operation. Note that in many countries, only products whose form is listed as delivery type RET are allowed for retail sale.

Features of the domestic market

The Russian market is not characterized by scrupulousness of foreign retailers. Therefore, it is possible to compare both variants of the product in terms of the benefits of a potential buyer. Let's try to find out the difference between OEM and RET delivery types.

Consider both of these options, for example, when buying electronics or components for it. The OEM supply is extremely modest and consists of an antistatic package, the product itself, and an envelope with media (disk, driver, etc.) if software is provided. The delivery of RET is noticeably more generous. Here you must have a strong colorful box, accompanying software, instructions, a set of accessories - cables, adapters, depending on the type of product. There is a rule: the presence of a packing box implies the type of delivery RET, and the absence of any necessary complementary items in the kit means the manufacturer is dishonest.

Cost difference

The price set by the manufacturer for the delivery type RET and OEM is always different. Everyone is familiar with the situation when the price tags for one product in the window are strikingly different from each other. A product labeled RET is, by definition, more expensive, and it turns out that the consumer pays for the box and, in a sense, for ease of use, because the manufacturer additional bonuses and colorful packaging attracts the attention of a potential client. It is this circumstance that is extremely important for buyers who are not able or do not want to overpay for an additional (by the way, not always necessary for them) package.

Warranty

Usually, manufacturers do not provide OEM supplies or they do, putting forward certain and rather stringent conditions.

As a rule, they shift the responsibility to assemblers and trading companies. If there is software for the product technical support developers it turns out, but often significant restrictions are contained in and they are valid only for one specific installation method. Transfer OEM licenses as if they were a product not intended for retail prohibited in the vast majority of cases. The RET type of delivery in this respect is much more loyal to the buyer, guaranteeing the possibility of free service, technical support and fulfillment of obligations to return the product if necessary.

It should also be taken into account that with OEM delivery, the goods may be damaged during transportation, since the factory packaging is not durable. It is worth taking into account modern Russian realities, where OEMs are often given out for products that were previously rejected and repaired.

Finally

So, the difference between RET and OEM supply is as follows:

OEM is not intended for the end user, but is launched by domestic retailers;
OEM is noticeably (20-40%) cheaper than RET products;
RET supplies are covered by the manufacturer's warranty, the consumer is provided with favorable license conditions;
RET delivery products are protected by strong packaging, supplemented with the necessary accessories, instructions, bonuses;
the theoretical possibility of detecting defective or damaged goods in OEM deliveries is much higher.

We have listed the main differences between the supply of goods on the Russian market and learned what the delivery type RET, as well as OEM, means. Each of them has its own advantages and disadvantages. You have to choose based on your preferences and capabilities.

Original, OE, OEM, analogues and others

There are many different interpretations of these values in the auto parts industry, so in this article we will try to define each of them.

In catalogs, as a rule, the term GENUINE (original) or OEM (Original Equipment Manufacturer) is indicated next to the name of the manufacturer of the spare part. If there are no designations, then it is understood that the spare part is an analogue of the original spare part or is produced by another manufacturer. Below is a detailed description of what these and other terms mean.

Genuine/OE - Original

Genuine Parts Mainly used by automakers on vehicles that roll off the assembly line of the factory. Parts can be produced under contract by OEMs such as Bosch, Mann, Hella and others for installation in new vehicles. Many spare parts such as body parts, parts brake system, elements of interior decoration, are manufactured at the factories of the automaker. Sometimes parts factories make parts under contract for the automaker only. Basically, directories use the terms GenuineandOE as equivalent. Genuinespare parts orOEspare parts are supplied in original packaging of car manufacturers, such as Mercedes, BMW, Porsche and any other car brands. For example, the original Porsche number 996-803-183-09 – lockbeltsecurity.

You can be sure that any part marked "GENUINE" is an original spare part of the vehicle manufacturer. The terms Genuine and OE have equal meanings as described above.

OEM - Original Equipment Manufacturer, OEM - manufacturer

Used to designate spare parts manufactured by companies such as Bosch, Mann, Hella and others in accordance with the technical documentation of car manufacturers such as Audi, VW, etc. These parts are authorized for sale by OEMs, in original packaging. In many cases, the part number and the logo of the car manufacturer are not marked to avoid copyright infringement. The main point here is that the OEM spare part is the same as that installed on the car in the original, i.e. it is its equivalent.

OEM Equivalent

A part that can be labeled as an OEM equivalent, such as an OEM part for a specific automaker, say SAAB. good example can serve as an oil filter, which is manufactured by Mann specifically for the Volvo engine, and the OEM oil filter for Saab is manufactured by Mahle.

Mahle may be the OEM equivalent of the oil filter for Volvo and Mann may be the OEM equivalent of the oil filter for Saab.

An important point in this matter is the quality and standards of the manufacturer, Mann or Mahle, allowing the manufacture of OEM products for any automaker. The quality of workmanship remains constant in the production of any products of these companies. On the other hand, the same car manufacturer may use products from different companies to different models their cars. For example, one Porsche model uses an OEM Mahle fuel filter, and another Porsche model uses a Bosch fuel filter.

Aftermarket - Analogues.

This refers to non-OE or OEM parts. Unfortunately, the quality of different analogues can vary greatly. However, enough a large number of analogues have a quality that meets the high standards of the original manufacturers. An example of analogues is Bilstein. Although Bilstein is an OEM for some companies such as Mercedes, it is also an OEM for VW and Audi and its quality is at or better than OEM equivalent.

We hope that our information will be useful to you when choosing spare parts for your car.