Analysis of the Investment in the Laundry Industry in Southeast Asia: The Dry Cleaners and Laundromats Part 1

Are dry cleaners or laundromats more promising investments in Southeast Asia? We can compare through market demand, investment costs, operational efficiency, and other aspects, and see the resulting conclusions.

Market Requirement

❑ Market Size Growth

Vietnam’s laundry market grew at a CAGR of 6%, higher than the Asian average of 3.6%. The Philippines laundromat opened a peak of 73 stores in 2016. (annual increase of 1000+) 

❑ Population Density

There are currently 15,316 laundries in Vietnam, 60% of which will be newly opened between 2020 and 2022. The density of laundromats in the CBD area of Manila, the capital of the Philippines, is 4.2 per square kilometer.

❑ Comparison of Unit Price

The average price of suit cleaning in dry cleaners is $8.5/ piece.

A single purchase at the laundromat is $3.2. (including drying)

Cost of Investment

❑Initial Input

● Dry cleaner

More than $105,000. (industrial dry cleaning machine, industrial washing machine, drying machine, ironing system, and so on)

● Laundromats

More than $48,000. (6 pieces of intelligent commercial washing machines and 4 pieces of commercial dryers)

❑ Operating Costs

● Dry cleaner

$6200 (Labor costs accounted for 58%, sample data from Kuala Lumpur)

● Laundromats

$1,850 (Equipment maintenance accounted for 41%, sample data from Yakata.)  

Conclusion

The above is the investment cost comparison between laundromats and dry cleaners in Southeast Asia. What about profitability? Let’s continue to look at the data comparison in the next article!