We hear names like Sony, Nike, Gucci, BT, Microsoft, Ford, Armani, etc. every day. These are top "manufacturer brands." Other top "retail brands" include Tesco, Next, M&S, GAP, Burberry, Virgin, etc. Most of us know and trust these brands because we've seen them around for a long time and know who they are and what to expect from their products.
People also tend to be brand loyal, which means they try and like a brand's products and then stick with that brand. For example, you might buy a Fuji digital camera and use a Fuji memory card with it. In fact, the brands try to get people to stay loyal to them. For example, if you buy an Epson printer, the company will tell you to use Epson ink cartridges.
Many people are then surprised to find out that their famous brand camera, watch, car, clothing, computer, etc. is not made by the company whose name is on the product, but by another company they may not have heard of. OEM stands for "Original Equipment Manufacturer." This company is the real maker of the product it sells under its own brand or the brand of another company, often using that company's design, specs, etc.
Some OEM relationships are known to the public. For example, Tesco doesn't make instant coffee, so a company that does makes Tesco instant coffee. Other OEM relationships are less obvious. For example, most BT fax machines are made by Olivetti, early Hewlett-Packard digital cameras were made by Pentax, and 70% of all notebook computers sold in the world (Dell, Compaq, HP, Apple, IBM, Sony, etc.) are made by Quanta Computers in Taiwan. The MG City Rover is made by Tata, the largest car manufacturer in India.
Many OEM relationships are well-kept secrets or at least kept quiet, and only people who work in the industry know about them. For example, Dell and Lexmark have been working together since 2002, and Lexmark makes Dell inkjet printers, laser printers, and print cartridges that go with them. Sony and Sandisk work together to make Memory Stick cards. These cards are sold under both brands.
So, is this something good or bad? Well, it's good for consumers because these partnerships cut the costs of making new products and putting them into production by a lot. In the end, this means lower prices for all of us. But it's important to keep in mind that a more expensive brand doesn't always mean it's better or even different from a cheaper one.
We, at Mouse2House, do our best to offer both well-known brands and other brands that, in our experience, offer the same or better value.
