An Insight into FORNET’s Growth and the Future of Professional Laundry in China and Beyond: A Conversation with CEO Zhu Lijun

As CEO of FORNET, China’s largest laundry chain, Zhu Lijun (Julie) has been at the forefront of the professional textile care industry for over two decades. With 1,800 outlets across China and two in the Netherlands, FORNET has established itself as a leader in an ever-evolving sector. In a recent interview, Zhu shared her vision for the future of laundry services, both in China and internationally, while reflecting on FORNET’s remarkable journey.

FORNET’s Humble Beginnings and Rapid Expansion

Founded in 1997, FORNET quickly became a household name in China, a feat made possible through franchising. Zhu explained, “We initially developed the FORNET brand by franchising, and after a few years, we began opening our own stores.” Today, FORNET operates 1,800 stores, with 300 company-owned outlets. This vast network underscores the company’s ability to thrive in one of the world’s most competitive markets.

The company’s business model—based on quality, convenience, and customer-centric services—has positioned it as a go-to provider for individuals and businesses seeking premium laundry services. Expanding outside of China with two laundries in the Netherlands, FORNET is beginning its foray into international markets, signaling a broader ambition to grow beyond domestic borders.

Adapting to China’s Slowing Growth

While China has experienced unprecedented economic growth over the past decades, recent trends indicate a deceleration. Zhu acknowledges this shift, yet she remains optimistic about the laundry industry’s trajectory. “The Chinese market may be slowing, but the demand for laundry services continues to rise,” she said.

This sustained growth is driven by unmet consumer needs. “Many customer requirements still haven’t been fully satisfied,” Zhu noted, highlighting a gap in the market that companies like FORNET are keen to address. For FORNET, the combination of high-quality service and advanced technologies plays a significant role in this upward trend.

Embracing Digital Transformation in Laundry Services

When asked about the current drivers of market growth, Zhu emphasized the importance of modernization. “Companies like FORNET, which are organized professionally and leverage sophisticated technologies, are shaping the future of the industry.” She cited the success of online platforms like Jingdong (JD.com) and Alibaba as examples of how digital transformation is reshaping service delivery in China.

But Zhu believes that the key to sustained success lies in a balance between online and offline services. “Whether it’s online or offline, the most important aspects are quality, service, speed, and convenience,” she said. While online platforms offer speed and efficiency, brick-and-mortar stores provide the personal touch that builds customer loyalty. In FORNET’s case, being able to meet customers face-to-face is a vital part of their service model. This omni-channel approach, Zhu argues, allows for differentiation and provides customers with more options to fit their preferences.

Navigating Competitive Pricing in China

The competitive landscape in China, particularly from low-cost online platforms, has created challenges for companies like FORNET. Zhu noted that low prices and aggressive promotions are prevalent, especially in the online market. However, FORNET has positioned itself in the premium segment, targeting customers who prioritize quality over cost. “Our target market is people who pursue a high-quality life,” she explained.

By focusing on delivering exceptional service and maintaining high standards, FORNET has been able to differentiate itself from competitors. This strategy aligns with the increasing number of Chinese consumers who are willing to pay more for better service and premium products.

International Expansion and the FORNET Model

FORNET’s recent expansion into the Netherlands marks its first venture outside of China. While still in the early stages of international growth, Zhu is optimistic about the company’s global prospects. “I think the FORNET model can meet the requirements of different countries,” she said, underscoring the universal appeal of high-quality, fast, and convenient laundry services.

When asked about further international expansion, Zhu emphasized the importance of finding the right partners and adapting to local market conditions. “It depends on finding the right partners who share the same philosophy and good communication,” she explained. While FORNET has no specific timeline for aggressive international expansion, Zhu is open to exploring new opportunities as they arise.

The Future of the Laundry Industry

Looking ahead, Zhu anticipates that the laundry industry will undergo some changes but remain fundamentally robust. “Even in China and other countries, young people don’t want to do laundry or iron clothes at home,” she said, noting that convenience is becoming a higher priority for consumers globally. As lifestyles shift and more people seek out professional laundry services, Zhu believes that companies like FORNET will continue to thrive.

She stressed the importance of adapting to customer needs over time, which has been central to FORNET’s success. “As long as we follow the direction of the customer’s requirements, we will find a way to survive and develop.”

Expectations for Global Events and Learning from Others

Zhu is eager to engage with industry peers on a global stage. As a board member of CINET, she is particularly interested in the insights and innovations that will be shared at the upcoming World Congress and Global Best Practice Awards. “I’m very curious about the changes in different markets around the world,” she said. “I want to learn what others are doing and what innovations are taking place.”

Zhu’s participation in these events reflects her commitment to continuous improvement and innovation, key drivers that have shaped FORNET’s journey so far. She views these gatherings as valuable opportunities to learn, share knowledge, and collaborate with other leaders in the industry.

Conclusion

Under Zhu Lijun’s leadership, FORNET has grown from a domestic laundry service provider to an international brand with ambitions to expand further. By focusing on quality, convenience, and customer-centric services, FORNET has positioned itself to meet the evolving needs of consumers in China and beyond. As the laundry industry continues to change, Zhu’s vision for a balanced approach between digital innovation and personal service will likely serve as a model for others to follow.

With her eyes set on both domestic and international growth, Zhu is confident that FORNET’s unique business model and unwavering commitment to quality will ensure its continued success in the years to come.