Laundry O2O Starts Burning Money War Only For "Tickets".

Laundry O2O the two most popular companies in Rongchang, e bag washing and Teddy washing, have won tens of millions of dollars in investment recently.

In the early November 2014, Rongchang e bag wash announced that it received A investment from Jingwei ventures and SIG for a total of about 20000000 dollars. Almost at the same time, Teddy washing publicity has been awarded $10 million from the Sequoia Capital Investment B round. E bag washing only took 4 months to get the angel's turn to the A wheel, and Teddy's washing from A to B was only in the past 3 months. The speed of capital investment is rare.

Observers believe that after the capital has entered, the "enclosure movement" of the industry will be launched, competing for users and grabbing the market. Both sides will speed up the layout of the country, and capital will become an important code for its competition. Zhang Rongyao, chairman of e bag washing in Rongchang, told reporters: "they are prepared to burn 100 million yuan in three or four months to subsidize users and change their consumption habits with this money."

　　 laundry What did O2O subvert?

"After 24 years of laundry, I made my own life. I cut all the pieces I had done in the past, and all of them fell down and started again. Including losing millions of dollars in disposing of Tianjin assets. " Zhang Rongyao said that although we began to embrace the Internet in 2000, we tried to cooperate with Sina in the online laundry service, including the "1 band 4" and "joint network card" mode. These are the products of PC and telephone era. In the mobile Internet era, we need to create products of this era.

Zhang Rongyao said that the products in the mobile Internet era have some characteristics, such as simple, convenient and interesting. The traditional laundry is charged by different materials, and this is certainly not the product of the mobile Internet era, so we change the past pricing method and charge according to volume. "We use bags to measure how much a bag is, which is our first creation."

It is true that by volume, the products that are not standardized can be transformed into standardized products.

After e bag washing in Rongchang, many laundry O2O enterprises appeared in the whole country. They accepted the idea and used bags to measure non-standard problems. Hunan's e family sent the founder, Ren Zhou, who said: "bagging can save the time of logistics personnel and reduce the threshold of receiving personnel, pack back in bags, then unpack videos under surveillance, and then match professional knowledge staff to check clothes, which can improve work efficiency."

"What I have been thinking about is laundry. Why do I need to subvert myself now, because I see the pain. I am very clear about the business model of dry cleaners. In the past, many of the owners of investment dry cleaners made money by making membership cards, getting advance payments, investing in real estate, and so on. They didn't really put their minds on laundry. The main source of money was not here, although the gross profit of dry cleaning was very high. Zhang Rongyao said that the traditional dry cleaning shop has many pain points, for example, many times the machine is idle, after the user has finished the membership card, the shop has closed down, the user can not get the proper service, and even some chase money is still very difficult. In response to these problems, Rongchang has made some solutions, such as setting up 4 garment collection points around a store, promoting users to pay for prepaid cards in Rongchang headquarters.

But this can not fundamentally solve the problem of users. There is still a limited time for users to send laundry. When the shop starts to open, there is a dispute in the laundry process. The headquarters control of the franchisee, the ability to solve disputes is limited, and can not tell which links the problem is. Zhang Rongyao believes that the mobile Internet era has given him new ideas, and these "pain points" have a solution.

In Rongchang e bag wash CEO Lu Wenyong seems, the traditional laundry to the user experience is "trouble, expensive, lack of experience" and now we have to do is to create a "save trouble, save money, entertainment, more happy" feeling for the user. The key step is to creatively provide 99 yuan for a bag of products.

Wang Cen, managing director of Sequoia Capital China fund, believes that Teddy washing actually caters to the economic market of lazy people, and also solves the problem of cost performance. In the past, the customers were finished by themselves. It was very inconvenient. Now that you have APP, you send a message to someone to pick up and save your heart and save your price.

The validation of his methodology has made many different promotional activities. "You will find that there are different customer groups to try, and there are many users who don't go to the dry cleaners in the past to get used to this way. They have duplicated consumption and the majority of female users." Ren Zhou shares his experience.

　　 Burning money is only "entering the door"?

Wang Cen told reporters: "O2O is just the abbreviation of the service industry in the Internet application. We return to the essence. Around a key point, it is standing on the consumer's standpoint to see the problem. It is good for the consumer to say good, and should not revolve around the concept. Consumers think it helps him to lower the cost of living or improve the quality of service. This is valuable. Teddy washes this way. "

Wang Cen believes that washing clothes and washing shoes are people's clothing, food and shelter. They are just needed. The capacity of the market is large and there are no problems in accommodating several. Moreover, the average gross profit of the dry cleaners under the line is very high. The way of doing O2O can raise the price performance ratio. After raising, the gross profit still has 40%~60%, or even 50%. At present, some O2O enterprises need to rely on continuous financing to develop because there is no hematopoietic capacity, which is why many O2O enterprises are not successful.

　　 O2O What is the real situation of the gross profit of the laundry enterprises? Zhang Rongyao admits that they are now in a bag of bags. Their mode is like this. After receiving the clothes, they will be distributed to the nearest contracted cooperative dry cleaners. The settlement of e bags and dry cleaners in Rongchang is priced according to the traditional pricing formula, that is, the calculation and the material quality.

However, Wing Yiu Cheung We are not worried about the way companies earn money. "This is not the point we need to consider now. How are we going to expand to more cities and seize customers?" In his view, this is also a place where laundry O2O can not be compared. In the stage of burning money, they have external investors, and some do not have continuous financing capability or even use the founder's own money to do this.

In the view of Ren boat, the laundry O2O is simple and the threshold is very low. In fact, there will be a series of difficult problems to solve. E home delivery is currently a central laundry mode, distribution logistics is a difficult problem. According to him, the pain of logistics is the problem that the whole laundry O2O is solving.

The most common phenomenon is that "if there are only one or two orders in the tens of kilometers away from the central laundry, it will be a loss if it is accepted. How to solve? At present, it is self built logistics, whether there is a better solution in the future, all need to be explored. " Ren boat said, the future laundry O2O really want to earn money is to earn money for logistics, and reduce the cost of logistics.

In the delivery of clothes, Rongchang e bag washing is also in trouble. Zhang Rongyao said that in some districts of Beijing, they did not allow express delivery, so they took crowdsourcing mode, looking for people in the district to take part time jobs and pick up the pieces in the district. However, as a system designer, Mr. Ren can see that once the volume is coming up, the system needs to be improved and the company's system design, process optimization and operation capabilities will be tested.

"The other elements of O2O enterprises are indispensable. Besides, we need to develop and operate the Internet and mobile Internet. And the challenge to specific O2O enterprises is that after scale, the requirements for the system, management and operation of the enterprise backstage will be higher and higher. Wang Cen believes that laundry is a starting point for housekeeping and nannies. It's relatively easy to enter the house.

Zhang Rongyao said in an interview earlier that he is not only a laundry worker, but laundry is just a single product. His idea is to be a O2O service provider for community service. He may even challenge Alibaba and Jingdong in the future. Some people think that washing and washing shoes is probably the first key for enterprises to knock on the doors of urban families. In this way, commercial space is very imaginative. However, we need to cross the fog stage of burning money.