Advancing into the Mainland: Taiwan's Laundry Industry is Highly Enthusiastic
Release Time:
2012-11-05 13:38
Source:
Taiwan Want Daily
(October 25, 2012 / Thursday, Wangbao A23 Edition) To promote further exchanges between the laundry industries of Mainland China and Taiwan, the Mainland Laundry and Dyeing Committee led a delegation to Taiwan for the first time to conduct an inspection. Yesterday, at the Cross-Strait Laundry Industry Summit Forum, the host, Li Wenhao, Deputy General Manager of Shanghai Weishi Laundry Equipment, called out on stage: "Does everyone want to advance into the Mainland?" About a hundred Taiwanese industry participants enthusiastically raised their hands and shouted: "Yes!" showing strong interest from many Taiwanese laundry operators in entering the Mainland market.
Optimistic about the potential of the Economic Cooperation Framework Agreement (ECFA) and the subsequent service trade agreement to be signed by the end of this year, Taiwanese laundry operators are actively entering the Mainland to seek new development opportunities. Participating companies included Mainland enterprises such as Beijing Funait and Sichuan Branch Laundry, as well as Taiwanese operators like Taiwan Giant Laundry Group and Shanghai Weishi Laundry Equipment.
Wang Shuyuan, Director of the China Laundry and Dyeing Committee, delivered a speech yesterday at the forum regarding the current status of the Mainland laundry industry. She stated that the Mainland laundry industry is currently entering a period of rapid development, with huge internal market demand potential and broad market space for industry growth. Moreover, with the continuous expansion of the Mainland luxury goods market, luxury leather care has emerged strongly, and the demand for high-end laundry services is also increasing.
According to statistics from the Laundry and Dyeing Committee, there are nearly 300,000 laundry shops above designated size in the Mainland, employing about 1.5 million people, with annual revenue exceeding 60 billion RMB. The future annual growth rate can reach over 10%.
Wang Shuyuan emphasized that this delegation visit to Taiwan mainly references Taiwan's 30 years of successful experience in the laundry industry. After the visit, she believes the Mainland laundry market has business opportunities with a population of 1.3 billion, while Taiwan's industry scale is small and competition is very intense. In the future, the development model of the laundry industry across the two sides will shift to two-way investment, cooperation, and shareholding.
Wang Shuyuan also pointed out that the Mainland laundry industry must currently focus on corporatization, improve innovation capabilities, eliminate outdated production capacity, and accelerate brand building. Only then can local brands maintain competitiveness while international brands rush into the Mainland market.
Pan Wei, Secretary-General of the Laundry and Dyeing Committee, believes that the Mainland laundry industry is accelerating the development of its own brands. Currently, there are many regional laundry brands in the Mainland, and there are already 100 national laundry brands, among which about a dozen have significant influence. The large market share is definitely attractive for Taiwanese businesses developing in the Mainland.
In addition, Zhu Lijun, General Manager of Beijing Funait Laundry Service Company, shared the development experience of local Mainland laundry operators. She pointed out that Funait was established in 1997, starting in Beijing, adopting a "front store, back factory" business model, positioned as a mid-to-high-end laundry brand. It has now expanded to over 800 stores nationwide. In recent years, it has steadily increased by dozens of franchise stores annually. At the same time, Funait has extended its brand value by introducing alteration services and has formed nationwide strategic partnerships with large hypermarkets such as Walmart and Carrefour. For example, a single store inside Carrefour in Shanghai Pudong can achieve annual sales of 2 million RMB.
Zhu Lijun believes that Funait's advantage in the Mainland is that its brand value has already been established. After visiting Taiwan Giant Laundry Group in Taiwan, she found that Taiwan's laundry industry management is meticulous, and the professionalism, refinement, and humanization of the service economy are very high, which Mainland laundry operators can learn from.
Currently, the investment amount for a single Funait franchise store in the Mainland is about 500,000 RMB, which has also attracted many Taiwanese laundry operators to inquire on site.
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