Kapler Laundry & Yige Network Join Forces to Unveil a New Chapter in Laundry Chain O2O

Joining hands with the Internet, connecting the Internet of Things, the Kapai Yi Network Plan

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Kapai Laundry & Yige Network jointly unveil a new chapter in laundry chain O2O

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On August 12, 2015, Shanghai Kapai Laundry Co., Ltd. and Zhejiang Yige Network Technology Co., Ltd. officially signed a strategic cooperation agreement for a business alliance in Shanghai. This is a small example of many alliances in the Internet+ era, but it is also an important milestone in the innovation of the dry cleaning industry's O2O model. So what kind of business logic and entrepreneurial opportunities lie behind this cooperation?

O2O is a false proposition because it originally considered moving from offline to online.

The future opportunity lies in the joint cooperation of the virtual economy and the real economy to create the future together. The true Internet economy is not purely virtual; only when the virtual economy and the real economy unite can there be winners.

—Excerpt from Jack Ma's 2015 Green Company Annual Meeting Speech

In the booming Internet+ era and the overwhelming O2O trend, any industry or enterprise seems out of date if it does not claim to be undergoing transformation and upgrade. While everyone worships e-commerce guru Jack Ma, they seem to selectively ignore his earnest teachings: traditional industries and the Internet are not substitutes or adversaries, nor is it about reshaping competition, but about true complementary advantages. Only full cooperation can forge the winners of the new era.

Therefore, under the situation of "mass innovation and mass entrepreneurship," without innovation, we inevitably face being crushed by the times rather than competition from peers; innovation must grasp the essence of business, the characteristics of the industry, possess true core competitiveness, and embrace the transformation of effective and leading Internet models.

The dry cleaning industry, as a service industry, has its key value in user satisfaction with the service provider. Whether a large dry cleaning enterprise, a dry cleaning brand, or a small dry cleaning store or individual operator, its core competitiveness must revolve around this business essence: what advantages and capabilities you have, and through what model you achieve ultimate quality assurance and high coverage service capability, thereby ensuring maximum user satisfaction, realizing your own value, and achieving operational profitability goals.

Shanghai Kapai Laundry Co., Ltd., as a leading brand in the dry cleaning industry, has always adhered to the business essence and operating principles, guided by consumer experience, focused on chain development, rooted in quality assurance, and aimed at store profitability to build its core competitiveness, innovate chain development models, select partners to move forward together, and improve the industry's survival environment.

Therefore, since 2013, although Kapai has only more than 1,000 stores nationwide, its survival rate exceeds 90%, far higher than the industry average of less than 30%, earning the industry reputation of "conscience of the industry, industry benchmark."

Therefore, Kapai has established its own direct-operated washing factory in Shanghai, opened nearly 40 direct-operated stores, and through 13 years of meticulous work, has gained high recognition from the consumer market and society, becoming the only private enterprise in the industry to receive the Shanghai Famous Trademark; providing rich practical sources and reliable references for washing technology ownership, optimization, standardization, inheritance, and for store opening, operation, management, and development.

Therefore, Kapai never engages in equipment manufacturing but introduces German design concepts and technology, selects top domestic OEM factories, controls production standards, making Kapai the only company in the industry whose main equipment has obtained EU CE certification and meets export standards.

Therefore, Kapai never engages in chemical material research and production but chooses the world's top chemical supplier—BUFA, with over 130 years of history—and adopts original import methods, providing fourfold safety and cleanliness guarantees for operators, consumers, clothing, and the environment, laying a strong technical foundation for truly healthy dry cleaning.

Therefore, during the process of direct-operated expansion, based on how to reduce the operational pressure of store rent and labor costs, how to improve customer consumption experience, and enhance store bargaining power and revenue capacity, from the first-generation front-store back-factory model in 2009 to the second-generation small cluster central washing model, then to the three-layer structure of factory, membership center, and collection store, and now borrowing the concept of rapid iteration and joint development from the Internet, Kapai proposed an epoch-making business organization model: a four-layer structure of central small cluster washing + central image store + collection point + collection cabinet. This model can be modularly and freely combined according to the market status and development stage of operators in different regions, allowing three-layer combinations: central image store + collection point + collection cabinet, or central small cluster washing + collection point + collection cabinet; or two-layer combinations: central image store + collection cabinet, or central image store + collection point, or central small cluster washing + collection cabinet. This provides flexible regional chain development solutions for franchise investors and strong model and technical support from entrepreneurship to business.

The development of any industry cannot be separated from the optimization of the ecosystem, and the takeoff of any enterprise cannot be separated from the improvement of the ecological chain. In the Internet+ era, under the premise of relatively backward industry development, Kapai not only builds a traditional enterprise ecosystem chain from equipment and facility suppliers, chemical material R&D and suppliers, technical and marketing resource reserves, providing strong backing for the formation and enhancement of core competitiveness; but also continuously thinks about terminal forms based on consumer experience improvement and input-output optimization, seeking more professional service providers and partners in various fields, continuously optimizing resources and cross-industry integration. From strategic investment in Alibaba's technical team to explore cloud laundry to attempts at self-built collection cabinet models. It is precisely because of the unremitting efforts of Kapai people that today’s strategic cooperation with Zhejiang Yige Network Technology Co., Ltd. has been achieved, perfectly realizing seamless connection with IoT terminals through cooperation with Yige Network, forming a comprehensive upgrade of the Kapai Yi Network Plan with maximized ROI efficiency and the most convenient consumer experience, thus unveiling a new chapter in the dry cleaning industry's O2O model.

Zhejiang Yige Network Technology Co., Ltd. has always served laundry chain enterprises, dedicated to innovating terminal marketing and service models, building a bridge between consumers and service providers. After gaining support from the capital market, on July 17, 2015, it signed a strategic cooperation agreement with the world's largest smart parcel locker operator—Speedy Express. The cooperation between Yige Network and Speedy Express provides more value-added services for Speedy Express's over 33,000 smart parcel lockers in 72 cities nationwide; meanwhile, the cooperation between Kabo Laundry and Yige Network makes the realization of value-added services more quality-assured and brand-supported. Through Yige Network's customer service platform, Kabo store operators can send the opening code to laundry customers' phones by reserving locker compartments. Customers can place laundry items into Speedy Express lockers to complete order delivery, seamlessly connecting with Kabo store's traditional pickup, inspection, and laundry services. On one hand, this eliminates customer loss caused by resistance to door-to-door service, simplifies the online laundry interaction process, and enhances customer consumption experience; on the other hand, it fully utilizes the scale advantage of Kabo's chain service terminals and the dense distribution of Speedy Express locker terminals. By decomposing main and branch logistics and reasonably utilizing fragmented resources of professional service providers, it greatly reduces delivery costs and ensures high-quality service.

The cooperation between Kabo Laundry and Yige Network, from the perspective of pioneering business models, is the first in the industry to realize the integration of the Internet of Things, the Internet, and offline service networks; from the perspective of business value realization, it provides the optimal solution to maximize the value of Speedy Express lockers and the interests of store operators, making laundry less troublesome for consumers, site selection easier for stores, and terminal marketing less generalized! It truly achieves a perfect combination of the virtual economy and the real economy, laying a solid foundation for symbiosis and mutual prosperity across all links of the entire ecosystem and even the ecological circle, maximizing value!