How to Build Your Own Outdoor Hot Tub Brand Using OEM Manufacturing? LOVIA®

Outdoor spa hot tubs have increasingly turned to the mainstream consumer market with the concept of wellness living popularization. These products have been widely used from Western family backyards, boutique homestays, and luxury resorts, etc. to wellness centers, hot spring resorts, and real estate developments, making these whirlpool spa hot tubs' applications scenarios expand without bounds which in turn drives continuous increase of world market demand.

According to research by Grand View Research, Fortune Business Insights, etc. and other publicly available data, the world spa hot tubs & spas market keeps maintaining an annual growth rate of roughly 5% ~7%. North America continues to be the biggest consumer region; however, Europe, Australia, and Middle East also maintain stable growth whereas Asian market has been developing very fast.

Leveraging the OEM model which means "Original Equipment Manufacturer" the outdoor spa hot tub manufacturers are the major suppliers for the international market, i.e. the product will be manufactured as per the client's design. Such mature OEM manufacturers are able to support not only their clients with a steady production line, but also can help in product development and even branding, which significantly lowers the cost of branding and entering the market.

Since its establishment as the leader in R&D and manufacturing of outdoor spa hot tubs LOVIA® has been offering OEM/ODM solutions to clients abroad, helping clients in different countries building competitive brand of outdoor spa hot tub. This article will, based on the trends in the industry, mainly focus on how to set up one's own brand via a OEM partnership and the considerations one must make while selecting an ideal manufacturer partner through which one will launch the brand.

Why the OEM model is gaining more attention amongst the outdoor hot tub brands?

The past method involved starting your own factory, purchasing equipment, assembling a team, building up the entire process, etc. It was not only financially expensive but also time-consuming that only the experienced players would do it.

With OEM, there are two collaborating entities that are mutually beneficial. The first is the brand owner who is taking care of branding, marketing and selling. The second one is the factory owner who handles the development and manufacturing of the product, and quality control.

This division of work not only allows efficient use of each party's strengths, but also makes the process much more straightforward. It is particularly beneficial to the outdoor spa hot tub manufacturers because they not only have their factory already equipped with all the necessary machinery but it is also supported by the experienced workforce as well as raw material supplier who are stable and have proven themselves to be reliable. In addition, the manufacturers themselves are experienced and well-acquainted with exporting goods to other regions of the world.

The result is that the OEM spa hot tubs, once the design has been agreed upon, will most certainly be available at the customer's premises within a period of just 30 to 60 days. This has resulted in tremendous savings of both time and money compared to building the same facility on site.

Additionally, along with the rise of cross-border shopping on the world e-commerce platform, lots of small e-retailers are seeking to become their own brand with higher added value of their products, which is further boosting development of the outsourcing model for manufacturing through a partner manufacturer.

I. Branding an Outdoor Hot Tub: First Things First, Market Positioning Analysis

Before launching the brand, the key for both a classic and a newcomer brand is to have a crystal clear understanding of who they are addressing. For that purpose,

The product needs of different outdoor spa hot tub markets of countries vary considerably. E.g the whirlpool spa hot tub market in North America mainly emphasizes therapeutic features such as massage and various types of water jets and insulation for winter. the European consumer whirlpool spa hot tub market is mostly concerned with product design, energy efficiency, and environmental standards whereas in Australia weather resistance and electrical safety are prioritized and in the Middle East the customer looks for big size multi-person spas mainly for hotels and villa projects at expensive levels).

At the brand planning stage therefore product positioning, target market, price range, application environment, and core selling points (e.g, aimed at family backyard users vs. commercial hotel/guesthome/wellness centers etc.) or is it a high-end boutique brand vs. a mass market brand ?) should be clearly laid out first. Once market positioning is defined, then the product configuration, the exterior design and even the branding & advertising direction will follow.

II. OEM Cooperation is More Than Just Branding; It's Product Customization

If someone thinks that OEM is simply putting on the owner's brand, he or she must realize that with a professional manufacturer, it can be far more comprehensive.

It is well known fact that in the international spa hot tub market now many products are offering different levels of customization. For example the client can decide for the size as according to the destination market, e.g. two seaters, three seaters, five seaters, six seaters, or even an eight seater, and also choose different seating arrangement with recliners, massage chairs or areas for family interaction etc.

In addition to the size, the OEM can also provide a variety of options regarding the finish of the acrylic, the choice of material for skirting, installation of LED lights, waterfalls, water features, sound systems with Bluetooth, Wi-Fi remote controllers, ozone sterilizer and UV disinfectant, etc., according to the desired brand positioning.

An extensive product range offered by the manufacturer is particularly beneficial for international brand names which not only increases the awareness of them but also provides the best possible answers to the requirements of a customer who is a member of a particular ethnic, demographic or cultural segment etc.

III. Product Quality Determines the Future of a Brand

For a brand to be successful in the outdoor spa hot tub business, the main feature of such a brand is the level of the product quality.

A good outdoor whirlpool spa hot tub should be able to be put to continuous usage over the period of more than 10 years. Therefore, manufacturing process has a lot of influence on the reputation of a brand. The main quality control steps include the vacuum molding of the shell, the fiberglass reinforcement of the shell structure, the steel frame welding, and the water system installation, electrical system assembly and the final product testing; these are all elements which contribute to the final product quality.

Taking spa hot tubs intended for homes as an example, the capacity is usually from 800~1800 liters depending on the model and can be fitted either with 30~100+ different jets. Some products are designed with multiple massage pumps and independent circulation systems to offer different body parts a massage. If the manufacturing procedure is not so perfect, the long-term use will lead to problems such as the leaks, the looseness of the jets, and the malfunctions of the control systems, which will result in brand reputation damage.

Therefore, selecting an OEM manufacturer with a sound quality management system and a stable production capability is far better than just looking for the lowest purchase price.

 IV. International Product Certification is an Important Factor in Getting Access to International Markets

If the aim is to enter international markets with the product, product certification is equally important.

For instance, CE certification is normally required by the European market; electrical safety certifications such as ETL are required by the US and Canadian markets; and the Australian market requires compliance with local electrical standards. Apart from these, customers more and more are also putting emphasis on environmental-related standards such as RoHS and REACH.

Experienced OEM manufacturers can not only offer product solutions in line with target markets, but also support customers with obtaining certifications, thus saving unnecessary testing and certification costs and speeding up market entry.

 V. A Reliable Supply Chain the Backbone of Any Strong Brand

Many startups pay more attention to sales than supply chain management.

Actually, when the brand has a certain influence in the market, a reliable supply becomes a critical factor in the company's development. If a supplier cannot be timely and the quality is fluctuating a lot, the customer will lose his or her trust in the product and brand reputation will be affected.

China is the world's largest manufacturing base for OEM of outdoor spa hot tubs mainly because of its sophisticated industrial chain. Almost all of the raw materials including acrylic sheets, fibreglass material, water pumps, control systems, and filter products are produced and sold locally in China, which guarantees the efficiency of production and stability of delivering product. For brands, stable supply means that they can concentrate on the marketing activity and brand building and avoid the hassle of changing suppliers frequently.

How to differentiate by creating your own outdoor spa hot tub brand?

In a more competitive market, only lower prices are no longer effective.

Successful brands usually distinguish themselves through the product experience aspect. For example, they can increase the comfort level of massage experience by having ergonomic seating arrangements; can minimize the long-term operating costs through adopting an energy-efficient insulation structure; introduce intelligent control system so that they can remotely operate via an app, and so on. Or a brand, for instance, can blend different national cultures in their design of exterior colors and functional configurations.

In addition to this, brands can explore differentiation by looking at different use scenarios: launching tiny outdoor pools that are good for homestays, large spas that are suitable for luxury villas, or a combination product that provides both warmth in water bath and ice-cold water massage for the fitness enthusiasts. All of these will help a brand better define its positioning.

Why international clients from different countries rely on LOVIA® for the OEM service?

An OEM partner for the brand who is an outstanding company not only is able to get the job done of the production but he/she will be a supporter of your long-term development of the brand in addition.

LOVIA® which has specialized in R&D and manufacturing outdoor whirlpool spa hot tubs, outdoor swimming pools, cold water therapy equipment. It is offering to international customers, both the full OEM and the ODM products, the one that needs to be customized with the brand. As disclosed to the public, the company owns a modern manufacturing base of about 45,000 square meters with 12 specialized production lines, over 200 workers, and the production capacity is about 1,200 units per month. It also is constantly making capital expenditure for development and improving its product line and the production process.

As for products, LOVIA® presents us with a range of various product lines covering home and commercial spas where we have been giving our clients, through customization, the option of selecting the spa size, model configuration, coloring of acrylic shell, control systems and also branding. This kind of flexibility has been allowing us to satisfy different countries' market needs at the same time, and through time we are also introducing new features in our manufacturing of acrylic, fiberglass, insulation, filtration, and control systems. It is the way through which we are enabling our clients to create outdoor whirlpool spa hot tub products that are much in line with changing market needs.

In addition to the OEM production, LOVIA® is offering, to international brands, other services such as, development of the product, certification support, packaging design, and management of the supply chain. This arrangement ensures that the brand will be able to spend most of its time and effort on marketing and development of their sales pipelines. It won't be necessary for them to set up a production unit and thus will save the heavy capital investment and operational expenditure.

From OEM to Brand Growth: Building Long-Term Partnerships is More Important

From a partnership point of view to developing and growing the brand: a mutually beneficial long-term relationship is much more meaningful.

Ultimately, a brand's success comes from its continuous and stable growth, not just from the satisfaction of its clients or its initial market breakthrough.

When a brand has reached the stage where the variety of its products is greater and the territory it dominates is broader, a partnership with an OEM company who is capable of supporting the R&D, delivering on time, and keeping up with technological innovations is vital.

Normally, large-scale manufacturers are more likely to carry out the production work of new products for clients in order to match the changes in the market and so, by doing so, the client may optimize the product, lower the cost of the product, thereby increase the competitiveness of the brand. Besides, partnerships which run over a long time are also able to make the supply chain more reliable, get goods ready for delivery in a timely fashion, and consequently reduce the risks involved in operations.

Therefore, companies that intend to be international brands will find that partnering with a strong OEM is the best way to go to ensure a brand's future growth, rather than simply chasing the cheapest suppliers at the moment.

FAQ

Q1: What is the difference between OEM and ODM outdoor whirlpool spa hot tubs?

Under the OEM model, the product is manufactured as per the customer's specifications, such as brand. It is typically under the customer's trade mark that the product(s) are sold. In the ODM model, a client is able to launch their brand rapidly by customizing product designs from an existing portfolio or product range of the manufacturer. The two models are equally popular in the outdoor spa hot tub industry.

Q2: Is building a factory the only way to establish a brand of outdoor spa hot tub?

Generally the answer is no. It is possible for brand owners, for example, to take advantage of the manufacturing expertise of a qualified OEM factory without any capital expenditures on machinery and buildings of their own. In this way brand owners free up their time, money and focus on marketing, brand development and sales channels without being tied up establishing a production department or facility which reduces their initial costs as well as business operating risks significantly.

Q3: What customization is offered in outdoor hot tubs manufactured through the OEM process?

One thing is you can customize the product sizes. Another way is you can select different colored acrylic shells, materials for skirts, a certain type of control systems, the type and layout of massage jets, LED lighting, etc. One can choose a certain brand logo, package design, and certifications needed in different countries. However, details can be altered based on the demands of the different targeted markets.

Q4: What characteristic makes it the most valuable attribute to select a manufacturer partner producing OEM spa hot tubs?

You may want to consider not only the price but also several other aspects that may be more important to you such as a manufacturing company’s ability to do product development, management of quality, its production scale, international certification experience, the stability of the supply chain and the level of service provided in case of problems. Finding a partner for cooperation that is stable and trustworthy is essential to developing and sustaining your brand.

Q5: What OEM support service does LOVIA® offer outdoor whirlpool spa hot tub brand owners?

LOVIA® gives its global customers an OEM/ODM option to choose from when it relates to outdoor spa hot tub products, as well as cold water massage devices, and other types of products. The services we provide to our clients include product development, exterior customization, branding, configuration fine-tuning, and certification collaboration, in addition to providing the entire spectrum of supply chain support so that they are better enabled to set up and grow the brand and at the same time satisfy the ever-changing needs of the consumers all over the ‍‌‍‍‌world.