24Tidy acquired the world's largest laundry factory during the economic recovery of Chinese consumer market
30 Apr, 2020, 09:18 BST
SHANGHAI, April 30, 2020 /PRNewswire/ -- On April 29th, 24Tidy (Shanghai) Network Technology Inc. announced its 950 million RMB acquisition of Tiantian Laundry (Guangzhou) Co., Ltd. in its strategy press conference in Beijing. As one of the largest online life services companies in China, 24Tidy has served over 12 million families with its excellent services that include laundry, flower, etc. Tiantian has been a famous brand in the laundry industry since 1991 and owns the largest centralized smart laundry factory in the world.
While many industries are suffering during the epidemic, the online economy has experienced dramatic growth since the beginning of 2020. When people keeping stay at home because of COVID-19, online services have been used by more and more customers covering all ages in China.
The founder of 24Tidy, Yao Zongchang said, "24Tidy and Tiantian Laundry had reached the agreement before the epidemic. The outbreak of COVID-19 accelerated our pace to restructure the whole industry while the increasing domestic demands also accelerated the strategic upgrading of 24Tidy." The online laundry market remains a blue ocean area and obviously 24Tidy seized the timing to make the right move. 24Tidy has provided professional online washing and disinfection services for more than 1.5 million families with a remarkable growth performance since the outbreak of COVID-19. The average daily active users of 24Tidy App increased by 200% compared with the same period of last year with a continuous upward trend. Also, core technology like AI algorithm used to optimize user experience and customize service by analyzing diversified big data from user consumer behaviors, helps 24Tidy maintain its competitiveness.
There are more than 400 thousand laundry shops in China and most of them are operated by very traditional business mode with small production unit behind the front desk. The old way makes the business owners run the business inefficiently with high cost burden, unable to guarantee high quality of the service and also take great risks of potential pollution to the local communities. This acquisition will make 24Tidy fundamentally lead small laundry business owners to update their business model with empowerment by information system and centralized supply chain, and eventually to resolve those risky issues.
The epidemic will enhance public awareness of health and personal hygiene, which will advance customer's preferences on professional washing and disinfection of clothing.
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SOURCE 24Tidy