60% of Power Bank Firms Employ OEM Model Amidst Intense Low-Price Competition
1 day ago / Read about 0 minute
Author:小编   

July 7 news: The battery cell, being the cornerstone of power banks, incurs costs that constitute up to 50% to 60%, or even more, of the total production expenses. The power bank market is notoriously competitive, with a glut of low-priced products overwhelming the market. These inexpensive power banks frequently compromise the profitability of enterprises across the entire supply chain. Consequently, some battery cell manufacturers have declined to supply battery cells to power bank producers due to the excessively low prices offered. Moreover, the varying quality standards among power bank manufacturing enterprises pose another significant challenge. According to Liu Tianpeng, the secretary-general of the Portable Power Supply Branch of the China Industrial Association of Power Sources, 60% of power bank enterprises operate under the OEM (Original Equipment Manufacturer) model, where the brand abstains from direct production, instead focusing on product design and online marketing. This model often results in negligence in factory and quality control.