A piece of clothing, "washed" out of a large laundry factory
Release Time:
2014-05-16 15:28
Source:
Henan Business Daily
From a dry cleaning shop of less than 15 square meters in 1989, it has developed into a well-known laundry enterprise in the industry. For 25 years, Kangjie’s "helmsman" Ji Pujun has built his laundry kingdom with a pioneering mindset.
As a witness to multiple developments and transformations in this industry, on May 10, "Entrepreneurship Seeder" will visit the Kangjie event site, where Ji Pujun will share with entrepreneurs his vision for the development direction of the laundry industry.
About entering the industry
Seized the business opportunity because of a piece of clothing
Development needs promoted transformation
Ji Pujun jokingly said it was because of one of his clothes that he entered the laundry industry, coinciding with the first transformation of the industry.
In the late 1980s, wearing woolen coats was very popular, and Ji Pujun had several such high-end garments. What troubled him was not knowing how to wash these clothes, "I heard that woolen fabric can't be worn once it gets wet."
By chance, he came into contact with dry cleaning. After solving his own needs, he realized that many people like him needed professional garment cleaning services.
In 1989, he took out all his savings of 30,000 yuan and invested in opening a small laundry workshop of less than 15 square meters in Erqi District, Zhengzhou. It was the first dry cleaning shop in Zhengzhou and quickly became popular. "It can be said to be the first development peak of the laundry industry in Zhengzhou. I caught a good time."
Relying on the "chicken and egg" model, Ji Pujun continuously reinvested the money earned into new stores, opening 12 stores in 9 years. "This was already my best effort, but the speed was still very slow."
Ji Pujun realized that to grow the brand, relying solely on his own ability was an "impossible task." Around 1997, he introduced the franchise model into the laundry industry, prompting the second transformation of the industry.
By providing franchisees with services such as store location selection and evaluation, supervision, distribution, training, planning, customer service, equipment maintenance, and upkeep, Ji Pujun began building a dry cleaning franchise support platform.
This model propelled Kangjie's development like a rocket, opening more than 100 stores in 3 years.
About development
Laundry prices rose by 5 yuan in 17 years; the laundry industry welcomes the third transformation
More than 10 years have passed, and the laundry industry has been continuously changing internally. "The single-store franchise model has almost reached its end," Ji Pujun admitted. He now stands at the forefront of the laundry industry's third transformation.
He calculated for the reporter, "In 1997, dry cleaning a piece of clothing cost 15 yuan; now the market price is about 20 yuan."
Ji Pujun said that over 17 years, costs such as labor, rent, and laundry materials have increased several times, but the laundry fee for a jacket has only risen by 5 yuan. The huge cost pressure has forced laundry shops to find various ways to cut expenses, inevitably causing a significant decline in service quality. "Items that should be dry cleaned are secretly washed with water, and clothes that shouldn't be washed together are mixed in one batch."
In addition, as people's requirements for living environments increase, the "front store, back factory" operation model of laundry shops has become "unpopular." "Stores rent apartments in residential communities, and the washing machines roar inside. Neighbors in the entire building look at you with displeasure."
Ji Pujun traveled the world hoping to find a solution. In South Korea, he was shocked by a laundry company that had opened 1,800 stores in the small country and had adopted a factory-style laundry model more than a decade ago. He believes this model has great potential domestically.
In 1997, Ji Pujun chose to "grow big" with Kangjie. Now he believes it is time to "grow strong" by compressing costs to the lowest through centralized production in laundry factories while maintaining strong quality control.
Special note: Entrepreneurship involves risks, and investment requires caution. This column only provides entrepreneurial information. Please investigate carefully, cooperate normatively, and invest at your own risk.
About transformation
Reform touches vested interests
The era of individual businesses is coming to an end
The transformation from franchise chains to laundry factories requires recalling all the hundreds of chain stores generated in the second transformation.
This move broke the previous industry pattern and inevitably affected the interests of vested parties. For this reason, Ji Pujun hesitated for three years, considering whether to do this.
"Reform is a helpless choice but also a necessary one." In Ji Pujun's view, the market conditions for "laundry factories" are now mature. "Many years ago, I wanted to build a laundry factory. Many peers across the country tried but failed. At that time, you set up a store in the city center to collect clothes, but people couldn't see your operation room and were reluctant to entrust their clothes to you. After more than 20 years of brand accumulation, Kangjie now has this condition."
Although facing investment pressure and the interests of franchisees being affected, Ji Pujun is determined to promote this model. "Individual businesses pursue profit, while enterprises pursue value. Enterprises must be responsible to consumers and cannot let the personal interests of vested parties affect the consumer experience."
Giving profits to franchisees is the core principle that Ji Pujun adhered to when reclaiming 104 franchise stores. "We have recovered over 15 million yuan in consumption cards from franchisees; this money has already been taken by the franchisees, but the subsequent services will be provided by us."
Ji Pujun said that from manual workshops to mechanized workshops and then to industrialization, the core value of Kangjie’s current "laundry factory" is to lead the industry onto the path of industrial production.
"Under this model, laundry quality is easier to control, work efficiency is greatly improved, and costs are lower." Ji Pujun said that in 2012, after Kangjie established the entire "central laundry factory" model, it alarmed various industries and is bound to drive the third transformation of the industry.
"This revolution is about ending the era of 'individual businesses.' As the survival space for individual laundry businesses shrinks, improving efficiency and freeing up labor has become the trend of industry development." Ji Pujun said that the era of individual businesses is coming to an end, which is what developed countries did two or three decades ago and is an inevitable result of market development.
In the future, Ji Pujun plans to introduce more advanced e-commerce services into the laundry industry. "Storeless operation and cashless transactions" are the major trends for the future development of the laundry industry.
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