OEM vs ODM in Sportswear Manufacturing: What’s the Difference & How Should Brands Choose?

let’s break down the differences between OEM and ODM in the world of sportswear, and—more importantly—help you figure out which model best fits your brand.

1. First Things First: What’s OEM, What’s ODM?

OEM (Original Equipment Manufacturer)

In this model, the brand provides all the design specs (tech packs, materials, fits, etc.), and the factory’s job is just to manufacture according to those instructions.

In other words: You are the mastermind, the factory is the executor.

Pros: Strong brand control, unique products, intellectual property stays with you.

Cons: Bigger investment (you pay for R&D, sampling, design), longer lead times, and you carry more risk.

ODM (Original Design Manufacturer)

The factory handles the design (often offering pre-designed products or developing concepts), then the brand purchases ready-made or slightly customized pieces to rebrand and sell.

In other words: The factory handles much of the creative process; you choose and label what fits your brand.

Pros: Fast to market, less up-front investment, lower entry barrier.

Cons: Less design control, more difficult to differentiate your brand, potential IP headaches if the same design is sold elsewhere.

Quick Comparison Table

Criteria	OEM	ODM
Design Control	Brand leads	Factory leads / offers selection
Customization	High (from scratch)	Lower (existing styles, tweaks
Time to Market	Slower	Faster
Initial Investment	Higher	Lower
Brand Uniqueness	Strong	Moderate to weak

2. Why Does This Matter So Much in Sportswear?

Activewear is a fast-moving industry. You’re not just chasing good looks—you need function (moisture-wicking, stretch, compression, breathability), a strong brand story, and agility to keep up with trends.

If you’re building a premium, highly differentiated, performance-driven brand, OEM lets you craft your own system.

If you’re trying to launch quickly, test the market, or keep costs down, ODM is a solid springboard.

Industry data shows that the global OEM/ODM apparel market reached about ¥1.3 trillion RMB (approx. $180 billion USD) in 2024, with China alone accounting for nearly ¥587 billion RMB.

Choose the wrong model, and you risk bland designs, weak brand positioning, excess inventory, and thin margins.

3. Real-Life Examples: How Do Sportswear Brands Actually Do It?

Example 1: Established Brand, OEM Path

Let’s say there’s “PeakPerformance Active”—a hypothetical brand with its own design team, custom-developed fabrics, and proprietary fits. They use OEM: sending detailed tech packs to the factory, and doing plenty of prototyping before production. The result? Unique, high-recognition products, but a slower, more expensive process.

Example 2: New Brand, ODM Quick Start

“FitGoWear” is a startup sportswear brand. They want to launch a few styles—yoga leggings, tanks—fast and cheap, to test the market via social media. They partner with an ODM supplier: choose from existing styles, slap on their logo, order small quantities, and go live in 6 months. It’s cost-effective and fast, but if they want true differentiation later, the switch can get pricey.

4. How Should Brands Decide? (5 Critical Questions)

Before you decide between OEM and ODM for your sportswear brand, ask yourself:

1. Do I have (or want) a strong in-house design team?

If yes, OEM is your friend. If not, ODM makes more sense at the start.

2. Is my brand about uniqueness or speed-to-market?

High-end, distinctive, story-driven? OEM. Fast launches, market testing? ODM.

3.What’s my budget, sampling cycle, and timeline?

Deep pockets, can wait? OEM. Limited funds, need speed? ODM.

4.How much do I care about IP/design ownership?

Need exclusive designs? OEM. More flexible on design rights? ODM.

5.Do I plan to scale or stay nimble?

For rapid scaling, you may need a mix—or to transition from ODM to OEM as you grow.

Many brands use ODM to start, then shift toward OEM as they mature and want stronger differentiation.

5. Pro Tips for Choosing OEM/ODM in Sportswear

MOQ (Minimum Order Quantity): Some ODM suppliers offer low MOQs (like 100 pieces per color/style) for easier market testing.

Fabric & Functionality: Sportswear demands technical fabrics (stretch, wicking, compression). Check for certifications like REACH or OEKO-TEX from your supplier.

IP & Sample Risks: With ODM, others might use “your” styles. With OEM, get contracts stating your designs won’t be resold.

Time to Market: Sportswear trends move fast. ODM is better for quick launches.

Hybrid Approach: Many brands use OEM for “hero” products and ODM for fast-fashion cycles.

Sustainability: Today’s buyers care about eco-friendliness. Check your manufacturer’s certifications—this is a key growth driver in OEM/ODM apparel.

6. Conclusion: What’s the Best Path for Your Brand?

Here’s my take:

First, ask: What kind of brand do I want to build? What resources do I have? How quickly do I want to launch? How much risk can I handle?

Depending on your answers:

If it’s “I want premium, unique products, I have a team, and I can wait”—choose OEM.

If it’s “I’m just starting, I need to save money, I want to launch fast”—choose ODM.

And remember: As you grow, you can always mix and match, or transition from ODM to OEM.

Hope this article gives you a clear roadmap for choosing your manufacturing model in the global sportswear arena!