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 Kapbei Network Plan

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Kapbei Laundry & Yige Network join forces to unveil a new chapter in laundry chain O2O

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On August 12, 2015, Shanghai Kapbei 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In the booming Internet+ era and the overwhelming O2O times, any industry or enterprise seems out of date if it does not claim to be undergoing transformation and upgrading. While everyone worships the e-commerce godfather Jack Ma, it seems people selectively ignore his earnest teachings. Traditional industries and the Internet are not substitutes or mutual resistance and defense; they do not reshape the competitive landscape but truly complement each other's strengths. 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 the crushing force of 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 effective and leading Internet model transformation.

The dry cleaning industry, as a service industry, has its key value in user satisfaction with the service provider. Whether it is 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 business profitability goals.

Shanghai Kapbei 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, based on quality assurance, and aimed at store profitability to build its core competitiveness, innovate chain development models, choose partners to move forward together, and improve the industry's survival environment.

Therefore, since 2013, although Kapbei has only more than 1,000 stores nationwide, its survival rate is over 90%, far exceeding the industry average of less than 30%, earning the industry reputation of "conscience of the industry, industry benchmark";

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

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

Therefore, Kapbei never engages in chemical research and production but chooses the world's top chemical supplier—BUFA, with a history of over 130 years—and adopts original import methods to provide fourfold safety and cleanliness guarantees for operators, consumers, clothing, and the environment, providing 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, we have evolved 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, drawing on the concept of rapid iteration and joint development of the Internet, we propose an epoch-making business organization model: four-layer structure of central small cluster washing + central image store + collection point + collection cabinet. This model can realize modular free combination according to the market status and different development stages of operators in each region, 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 is inseparable from the optimization of its ecosystem, and the takeoff of any enterprise depends on the improvement of its ecological chain. In the era of Internet+, under the premise of relatively backward industry development, Kapper not only builds a traditional enterprise ecological chain from equipment and facility suppliers, chemical material and consumable R&D and suppliers, technical resources, and marketing resource reserves, providing a 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 integrating across industries. From strategic investment in Alibaba's technical team to explore cloud laundry, to the attempt of self-built clothing collection cabinet models. It is precisely because of the unremitting efforts of Kapper people that today there is a strategic cooperation with Zhejiang Yige Network Technology Co., Ltd., and through cooperation with Yige Network, a seamless connection with IoT terminals has been perfectly realized, forming a comprehensive upgrade of the Kapper Yi Network plan with maximized ROI efficiency and the most convenient consumer experience, thus opening a new chapter in the O2O model of the dry cleaning industry. Zhejiang Yige Network Technology Co., Ltd. has always served laundry chain enterprises, committed to innovation in 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; the cooperation between Kapper Laundry and Yige Network makes the realization of value-added services more quality-assured and brand-supported. Through Yige Network's customer service platform, Kapper store operators can send the locker opening code to laundry customers' phones via reservation lockers. Customers can place laundry items into Speedy Express lockers to complete order delivery and easily achieve seamless connection with Kapper store's traditional pickup, inspection, and laundry services. On one hand, it 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 Kapper's chain service terminals and the dense distribution of Speedy Express locker terminals, decomposes main and branch logistics, reasonably utilizes fragmented resources of professional service providers, greatly reduces delivery costs, and ensures high-quality service. The cooperation between Kapper Laundry and Yige Network, pioneering in business model innovation, is the first in the industry to realize the integration of IoT, Internet, and offline service networks; in terms 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 generic! It truly achieves a perfect combination of the virtual economy and the real economy, laying a solid foundation for symbiosis and mutual prosperity, and value maximization across all links of the entire ecological chain and ecosystem!