Core Insights - Fengchao is expanding into the high-end market with its new laundry brand "Xinjie," opening stores in shopping centers in Shenzhen and Shanghai to attract high-net-worth individuals [1][3][4] Group 1: Business Strategy - Fengchao aims to leverage its existing laundry supply chain and reduce expansion risks by recruiting partners for the new Xinjie stores, with an estimated initial investment of 110,000 yuan per store [1][6][7] - The new Xinjie stores will offer a more refined service compared to Fengchao's existing app-based laundry services, including specialized care for various clothing types and higher pricing for premium services [3][4] Group 2: Market Positioning - The Xinjie brand focuses on personalized service and high-quality care, contrasting with Fengchao's standardization and convenience in its existing online services [4] - The new stores are strategically located in affluent areas, such as Shenzhen's Taikoo City and Shanghai's Lujiazui, to better reach high-end customers [6][7] Group 3: Financial Considerations - The initial investment for partners includes a management fee of 19,800 yuan, a performance bond of 10,000 yuan, and estimated renovation and equipment costs totaling 75,000 yuan and 15,000 yuan, respectively [6][7] - Fengchao's revenue from value-added services, including laundry, has decreased as a percentage of total revenue, indicating a need for new growth avenues [8][9] Group 4: Competitive Landscape - The laundry market is competitive, with Fengchao facing pressure from established players like Hema and JD, as well as the growing demand for home delivery services [8][9] - Experts suggest that Fengchao should explore partnerships with larger dry cleaning and laundry brands to enhance resource integration and reduce operational costs [10]