Pioneering a new chapter in the laundry and dyeing industry with a spirit of reform and innovation

Wang Shuyuan's Speech at the 2011 Director Meeting of the Laundry and Dyeing Committee

Director Wang Shuyuan Engages in a Cordial Conversation with Chairman Chen Youqing of Sea Lion Group

China's laundry and dyeing industry has undergone nearly twenty years of rapid development and has now entered a stage of steady growth, playing an important role in prospering the market economy, stimulating domestic demand, facilitating the public, improving quality of life, and providing employment.

1. The Laundry and Dyeing Industry in China is Flourishing with a Promising Outlook

(1) Market Scale Continues to Expand, Service Capacity Gradually Improves

According to preliminary estimates, by the end of 2010, there were about 250,000 laundry shops (factories) above designated size in China, employing approximately 1.25 million people, with an annual washing capacity exceeding 6 billion pieces (items), and annual revenue surpassing 60 billion RMB, growing at a rate of over 10% per year. Overall, China's laundry and dyeing industry has strong adaptability, with huge domestic market demand potential and broad development space.

(2) Overall Level Rising Rapidly, Leading Enterprises Innovate and Develop

After nearly 20 years of rapid development, the overall level of China's laundry and dyeing industry has significantly improved. A number of large-scale, well-managed, fully equipped laundry companies and large laundry shops with good service quality have emerged, forming new well-known national or regional brands. Currently, there are many regional laundry and dyeing brands in China, with no fewer than 100 brands of a certain scale nationwide.

(3) Industry Standards Becoming More Regulated, Market Operation Healthier and More Orderly

Marked by the promulgation and implementation of the "Laundry and Dyeing Industry Management Measures" and the revision of the "National Occupational Standards for Laundry Workers," a series of national, industry, association, and local standards covering professions, technology, services, environmental protection, and operations have been introduced; industry supervision and testing as well as branch institutions for standards have been gradually established and improved; national commerce, industry and commerce, environmental protection departments, and laundry industry associations have clarified responsibilities and jointly promoted healthy development of the laundry and dyeing industry. The laundry market is continuously moving toward a healthy and orderly direction.

(4) Practitioner Structure Becoming More Reasonable, Personnel Quality Continuously Improving

Marked by the establishment of the Expert Committee on Laundry and Dyeing Industry of the China General Chamber of Commerce, a strong technical force of well-known experts nationwide has been accumulated to provide technical and innovation support for the development and revitalization of China's laundry and dyeing industry; multiple categories and levels of technical and qualification training and international exchange activities such as the "Laundry Worker" profession, teacher training, and dispatching laundry trainees abroad have laid a technical and talent foundation for the market; the overall quality of personnel in the industry has continuously improved, with technical levels gradually clarified; many enterprises have set up training centers with clear plans and standards for new employee training, and all employees hold certificates. In recent years, more highly educated talents and higher-quality investors have entered the laundry and dyeing industry, making the practitioner structure more reasonable.

(5) Association Organizations Continuously Improving, Becoming Strong Drivers of Industry Development

Since the preparation and establishment of the Laundry Professional Committee of the China General Chamber of Commerce, local laundry associations have been successively established. By the first half of 2010, there were more than 60 local laundry industry associations nationwide. With the continuous improvement of associations at all levels, government management of the industry has a basis and efficiency has improved; the industry's development direction is on track and enterprises have channels for their demands; consumer rights are protected and market operation is more orderly; associations play an increasingly prominent role as a bridge linking government and serving the industry.

However, it must also be recognized that during the rapid development of the laundry and dyeing industry, long-accumulated contradictions and problems have become increasingly prominent. These include blind expansion of production capacity, excessive small and scattered operations, insufficient concentration; weak independent innovation capability, lagging development of high-tech and functional washing services; the phenomenon of expanding markets under foreign brand names remains prominent, with few independent laundry service brands; industrial layout is not entirely reasonable and has not yet formed an intensive pattern; low-end equipment occupies most laundry enterprises, making energy saving and emission reduction tasks arduous, with high energy consumption and wastewater discharge, all of which have become important factors restricting the healthy and rapid development of the laundry and dyeing industry.

2. Technological Innovation to Enhance Industry Vitality and Dynamism

(1) Establish and Improve Laws and Standards to Achieve Standardized Development

Actively leverage the Secretariat of the National Laundry and Dyeing Industry Standardization Technical Committee, based on the "Laundry and Dyeing Industry Management Measures," implement the "Guiding Opinions of the Ministry of Commerce on Further Developing the Laundry and Dyeing Industry," and gradually establish and improve national, industry, and local legal and regulatory systems and implementation methods based on reviewing current laundry and related laws and regulations. Strengthen the application of laws and regulations in market access, energy saving and emission reduction, safe and green laundry, and consumer rights protection; enhance management and regulation to create a scientific, standardized, and orderly market environment. Research and formulate industrial technical standards for washing and energy-saving environmentally friendly complete laundry equipment for new high-performance fiber textiles, ecological textiles, functional textiles, and low-emission laundry chemicals. Strengthen the implementation of the "Laundry and Dyeing Industry Management Measures," guide organizations to develop solutions for industry consumer dispute resolution, and protect the legitimate rights and interests of operators and consumers.

(2) Increase Efforts in Technological Progress and Transformation to Promote Energy Saving and Emission Reduction

Support enterprises to increase efforts in technological progress and transformation, focusing on supporting the industrialization and application of high-tech laundry equipment and chemicals, exploring and applying new laundry service methods and service formats, and supporting technological and process upgrades in washing equipment, chemicals, and services. Strengthen research and promotion of basic laundry application research and technological innovation to improve laundry quality and standards through technological advancement.

Innovate laundry service concepts to provide customers with safe, healthy, green, and low-carbon new washing services. Strengthen research and application of energy-saving and emission-reducing washing equipment with high efficiency, continuity, and short processes, as well as energy and resource recycling technologies.

(3) Promote Talent Development Strategy to Improve Overall Practitioner Quality

Further increase training and service projects for laundry industry personnel quality, implement personal technical qualifications and professional certification, intensify technical training, improve the overall quality of personnel in the entire industry, and implement all-staff certification; promote integration of production, education, and research with enterprises as the main body, supporting enterprises to cultivate and strengthen R&D teams. Strive to achieve a 30% certification rate for on-the-job personnel in the early years of the "12th Five-Year Plan."

(4) Promote Brand Development Strategy to Cultivate Industry Famous Brands

Using popularity, reputation, and loyalty as evaluation criteria, build a new situation of joint development between nationally renowned brands and regionally renowned brands. Through three major brand events: "Laundry Industry Summit Forum," "Laundry Industry Vocational Skills Competition," and "Laundry Industry Exhibition," provide more well-known brand enterprises with platforms for display and development. Support and assist some leading enterprises to enable them to play a core and leading role, driving the development of the entire industry. By promoting brand development strategies, change the current situation in China's laundry industry where there are few well-known brands, short brand life cycles, weak independent innovation capabilities, poor international competition awareness, and a shortage of brand talents. At the same time, actively cultivate professional managers of well-known brands, enhancing the development space of well-known brand enterprises through their growth, thereby driving the sustainable development of the entire laundry industry.

(5) Leverage the role of the association and strengthen industry self-discipline

Guide laundry industry associations to play the roles of "self-discipline, coordination, rights protection, and service," enabling them to act as bridges and links in communicating between the government and enterprises, regulating industry behavior, reflecting enterprise demands, and strengthening industry self-discipline. Fully utilize laundry industry associations to guide enterprises in implementing industrial policies, strengthen industry self-discipline, stabilize the domestic basic market, improve independent innovation capabilities, accelerate technological transformation, eliminate backward production capacity, optimize regional layout, improve public service systems, accelerate independent brand building, enhance enterprise competitiveness, and promote healthy and orderly industry development.

(6) Strengthen international exchanges and cooperation, and promote brand enterprises to "go global"

Provide international technical exchange activities in various forms to support the development of the laundry industry, and strengthen international exchanges and cooperation within the laundry industry. Adhere to the principle of "bringing in," while learning and introducing internationally advanced washing technologies, products, and services, help well-known brand laundry enterprises "go global," providing them with more opportunities to participate in international cooperation.

Leaders and directors, I believe that with our joint efforts, the laundry industry will surely make new contributions during the "Twelfth Five-Year Plan" period by implementing expanded domestic demand, promoting consumption, and achieving the transformation of the entire industry into a modern service industry.

August 6, 2011