For Whom the Bell Tolls?

On April 1, 2010, Beijing Shoulu Prande Laundry Co., Ltd. ceased operations entirely. This marked the end for a company with over 80 years of history, which had developed a complete and standardized business management model and corporate image, with nearly 100 chain stores nationwide. Known for its advanced equipment, exquisite laundry technology, good public image, and service, it led the industry and was recognized by the Ministry of Domestic Trade of the People's Republic of China as an "Old Chinese Brand". Unable to bear the heavy burden, it quietly withdrew from the fiercely competitive laundry industry stage. This company, dedicated to the development and promotion of laundry chains and representing many foreign advanced laundry equipment brands, with multiple outstanding international and domestic shareholders, having received care and support from relevant government departments, boasting enviable hardware and software, investing over 40 million yuan, sending hundreds of employees to Japan for training, and with a promising future, after five years of restructuring, should have been riding the waves, overcoming obstacles, and expanding its prospects. Yet, it unexpectedly succumbed to many small laundry factories with very weak resources in all aspects, collapsing during a booming laundry market.
In May 2010, a privately invested laundry factory, claiming to be the largest in Beijing with a daily processing capacity of over 30 tons, went bankrupt. In 2005, a local couple who had been competing in the laundry service market for many years invested all their savings to establish what was then the largest laundry factory in Beijing. Although the equipment was not advanced, the daily washing capacity exceeded 30 tons, providing strong support for the normal operation of many star-rated hotels in the capital. To meet the huge throughput, the couple worked tirelessly, even lowering prices to the lowest in Beijing. They hoped to achieve high sales with low profits, but this low profit did not lead to high sales. On the contrary, due to the thin profit margin, the company could not sustain normal operations, resulting in low and delayed wages for workers, occasional work slowdowns, and greatly affected laundry quality. This situation further impacted the factory's ability to collect payments on time, creating a vicious cycle. Coupled with bad luck, the factory eventually quietly withdrew.
In June 2010, a foreign-invested modern medical laundry factory specializing in linen washing services for the medical system was abruptly transferred. In 2006, this foreign company, optimistic about China's laundry market, invested over 20 million yuan in Beijing to establish a modern medical laundry factory. The factory adopted internationally accepted sanitary isolation laundry methods, using advanced laundry conveyor systems, sanitary isolation washing machines, high-speed flat ironing, and folding systems to provide high-quality linen washing services for Beijing's medical and health system. Its concept was undoubtedly advanced, its equipment modern, and its management sound. However, when facing Beijing's unique laundry market, it ultimately exhausted its skills and was squeezed out by numerous small laundry factories with outdated concepts, mixed equipment, and poor management.
Just before this publication on August 15, 2010, China's first laundry-themed park — Beijing Zhengdong Lily Laundry Park — officially ceased operations. This park was a key project implemented by the Beijing Municipal Bureau of Commerce under the "Three-Year Action Plan for Beijing's Commercial Service Industry to Welcome the Olympics" and a pilot project for the capital's circular economy. When established, it received significant attention and extensive media coverage for guiding the construction of laundry industrial parks, improving the intensive development level of the laundry industry, and enhancing the industry's high-tech content, technical level, and service standards. This park provided strong support and made great contributions to linen washing for the Olympics, earning praise from the Beijing Olympic Organizing Committee and relevant municipal government departments. It greatly promoted the integration of China's laundry industry with the international laundry industry. It not only encouraged laundry practitioners but also filled the public with eager expectations for the ancient yet youthful laundry industry. However, with the park's investor — Beijing Zhengdong Electronic Power Group — ceasing to supply steam to the park, it came to an end. Consequently, two large laundry factories within the park that provided linen washing services for the Olympics also ended without resolution.

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Under market economy conditions, business closures are quite normal. However, within half a year, in the capital Beijing, the top district, the successive closures of large laundry service enterprises are indeed abnormal and puzzling. The intensity of these closures is so fierce that it feels like a storm is brewing, truly chilling those in the laundry industry. In this situation, any slight disturbance causes laundry factory owners in the capital to feel extreme anxiety. This sharply contrasts with the thriving laundry market over the past two years: despite the global financial crisis, sales of laundry machinery in China have increased by about 30% year-on-year on average.
Within less than half a year, several highly representative laundry enterprises have successively closed, which is truly regrettable. What exactly is the problem?
On the surface, each closed enterprise had its own reasons: Shoulu Prande had too many internal conflicts and systemic flaws; the largest private laundry factory overreached, and low prices were a double-edged sword; the foreign-invested medical laundry factory had "advanced concepts" but was "unsuited to local conditions," which was its fatal weakness; the laundry park was located in a cultural and creative park, and its closure only once again proved the harsh reality that decisions made on impulse and everything must yield to capital.
Although each company died in its own way, one thing is common: they all wanted to run their laundry factories well, increase profits, and protect the interests of the company and employees; while creating economic benefits, they continuously improved social benefits, expanded employment, and maintained social stability. So why do larger companies have less profit, and the bigger they are, the faster they die, unlike some smaller laundry factories?
This has become an inescapable paradox in the domestic laundry industry: the more standardized, the faster they die! Being a big target is one reason; being bound by rules is another. When talking with the head of a company that operates nearly twenty laundry factories nationwide about the biggest difficulty in running laundry factories, the leader vividly summarized the root cause of the difficulties faced by standardized, large-scale laundry factories: you cannot compete fairly with those who operate by "stealing"!
Stealing? Stealing what?
Stealing water, stealing electricity, stealing steam, cutting corners, tax evasion!
Stealing is unethical and something any responsible person would disdain to do. Shoulu Prande would not steal, the foreign laundry factory would not steal, and the Olympic laundry service providers in the park certainly would not steal.
A laundry factory supervisor once revealed to us the secret of how the laundry factory owner could still make a profit despite low prices: the factory washes more than ten tons daily, and each bedsheet is still priced around 1 yuan as it was 10 years ago. The water is sourced from a private well, so no fees are paid. If municipal water were used, over 200 tons would be needed daily, costing 400,000 to 500,000 yuan annually. Steam is centrally supplied, with only a symbolic payment of 200,000 to 300,000 yuan annually to the owner. If a private boiler is used, coal costs over 100,000 yuan monthly. These two items alone save about 1.5 million yuan annually. Originally, water was added three times, but now only once or twice; towels and bath towels collected are not washed but only dried; clean linens are only rinsed once; and so on, with many such practices.
No wonder, Beijing's price level is top-ranked nationwide, yet the laundry prices for linens are in the lower middle range among major cities, with bedsheets averaging around 1 yuan. Even in faraway places like Anshun and Yili, the price for washing each bedsheet is about 1.3 yuan. What is the living standard in Anshun and Yili? What is the living standard in Beijing? Isn't it strange that Beijing's laundry prices are lower than those in remote areas?
A few years ago, the Beijing Laundry Association organized a detailed cost breakdown and accounting of laundry prices for members. Taking bedsheet washing as an example, the accounting concluded that a price of 1.35 yuan per bedsheet in Beijing was reasonable. Several years have passed; what is the actual price now? Mostly around 1 yuan. This price seriously violates reasonable market operating principles. Since it violates market rules, why does everyone still do it? The root of the problem lies here.
Why? Look at those who have fallen and those who remain, especially the laundries parasitizing around steam sources. Combined with the description from the head of a company with nearly twenty laundries nationwide, the answer naturally emerges.
If the aforementioned laundries that heroically fell had also parasitized around steam sources where under-the-table operations were possible and used non-market methods, they certainly would not have become the heroic pioneers of the capital's laundry industry so early.
Just before the Laundry Park was about to be closed by the Zhengdong Group, the tearless laundry workers expressed their deep pain and helpless sorrow on Sina Weibo in blog form under titles such as "The Eight Major Crimes of XXXX" and "The Dark Secrets of Zhengdong Lily Laundry Park."
According to reports, a well-established Chinese laundry chain was the first to move its headquarters to Zhengdong Lily Laundry Park in the 798 Art District at the park's opening. Before this, the 798 Art District was filled with galleries, restaurants, cafes, and bookstores, with only a few companies related to art and culture. A laundry chain headquarters moving in was somewhat unusual. However, the chain's CEO did not see this as inappropriate, believing Zhengdong Lily Laundry Park to be a pilot project for Beijing's circular economy. The laundry base uses leftover steam from Jiuxianqiao Electronics City as power, and 75% of laundry wastewater can be recycled, greatly reducing harmful detergent pollution to natural water systems. He even proudly said that establishing a headquarters in such a place was a pleasure! Moreover, from its founding over a decade ago to moving into the laundry park, every step was full of surprises!
Truly a prophetic statement! In just two or three years, an unexpected result appeared. Facing the bold claims at the time, the infinite hopes then, the now empty park, and the soon-to-be-changed base, the CEO must be wondering what to think now!
Who is to blame for all this outcome? Who will take responsibility for all this?
Shoulu Plande has fallen!
The foreign-funded medical laundry factory has fallen!
The largest private laundry factory has fallen!
The laundry park that opened three years ago has closed! The laundries inside have also ended without success!
The death knell has already sounded! Four representatives of the capital's laundry industry have gradually exited the historical stage amid the loud tolling of the death knell. What is sad about this? What is regrettable? What is lamentable? What lessons will peers learn from them?
For whom will the death knell toll next?!