Mainland Laundry Industry Delegation Visits Taiwan for Experience Exchange
Release Time:
2012-11-07 13:25
Source:
Taiwan Want Daily
Taiwan Want Daily, October 25, 2012, A22 edition news) The Cross-Strait Laundry Industry Summit Forum was held yesterday at the Grand Hotel. Attending mainland participants included Wang Shuyuan, Director of the "China Commercial Federation Laundry Professional Committee," the mainland industry authority, Zhu Lijun, General Manager of Beijing Funait Laundry, the largest laundry operator in the mainland, and 36 others, making it the largest and highest-level mainland laundry industry delegation to visit Taiwan to date.
Wang Guoan, Chairman of the Cross-Strait Chain Operation Association, first delivered a speech. He pointed out that when he saw Zhu Lijun in Beijing 10 years ago, Funait Laundry only had more than 100 stores in Beijing, and the store layout was quite ordinary. But after 10 years, Funait now has nearly 900 stores in more than 200 cities in the mainland. Some branches in Pudong can even achieve business of 2 million RMB (same below), showing the rapid development of the mainland laundry market.
Mainland Market Has Strong Potential
Li Jingjin, General Manager of Shanghai Weishi Laundry, was once the founding president of the Taiwan Chain Franchise Promotion Association. About 10 years ago, his Tai Li Dry Cleaning was the largest laundry chain store in Taiwan. At the franchise briefing, over a thousand operators attended. Later, due to unsuccessful regional franchise transformation, the business once fell into difficulty. Later, he transformed to laundry equipment in Shanghai, also relying on the development of the mainland market. Now, nearly 40 central laundry factories have been established across the mainland, supporting nearly 40 laundry chain brands, each having 30 to over 100 branches.
The success of Zhu Lijun and Li Jingjin further proves that the mainland laundry market has unlimited development potential.
Wang Guoan further pointed out that the laundry industries on both sides of the strait are now facing transformation pressures simultaneously. Although Taiwan's laundry industry has advantages in management and automation, it is limited by the small Taiwan market and has yet to develop scales of hundreds of stores like the mainland; while mainland laundry operators have market advantages, with rising wages and rents, the past "front store, back factory" and "heavy use of manual labor" single-store operation model is becoming difficult to sustain.
Wang Guoan believes that operators on both sides should pursue mutual investment and cross-shareholding cooperation in the future.
The happy questions raised by mainland laundry operators when visiting Taiwanese laundry factories also show that the time for cross-strait cooperation and transformation has arrived.
Taking Taiwan's largest uniform laundry factory "Giant Laundry" as an example, more than five years ago, Giant Laundry cooperated with locals in Shanghai to open a laundry factory, but the cooperation failed because the mainland side was unwilling to invest in purchasing automated equipment. However, earlier this year, Giant Laundry established an office in Shanghai to operate laundry equipment and materials (including detergents and consumables) trade, with good business. Many whole-factory plans including equipment have orders worth 10 to 20 million RMB. This shows that mainland laundry operators have noticed market changes and are seeking cooperation with Taiwanese businesses.
Laundry Industry Complementary Win-Win
During the mainland laundry delegation's visit to Giant Laundry's Hsinchu and Linkou factories, the most exciting was the automated factory layout plans. They were very interested in the fact that the eight factories in Taiwan can process 120 tons of clothes per day. However, mainland operators, even after purchasing automated equipment, cannot achieve the same results as Taiwanese factories. For example, the amount of uniforms Giant Laundry can process in 20 minutes takes 30 minutes in mainland factories with automation. This involves factory workflow planning, worker training, and equipment debugging, all requiring Taiwanese experience.
Although the mainland market has prospects, Giant Laundry's management still has concerns about directly investing in factories in the mainland. The biggest consideration is that the mainland uniform laundry market still has many unspoken rules; without connections, it is impossible to do big business. For example, a Taiwanese laundry factory has secured uniform laundry business for over 270 Starbucks stores in the Yangtze River Delta but cannot effectively enter the uniform laundry market of state-owned and mainland private enterprises.
From this, it is clear that cross-strait laundry industry complementarity and win-win cooperation is not just a slogan.
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