Analysis of the Investment in the Laundry Industry in Southeast Asia: The Dry Cleaners and Laundromats Part 2

In the laundry service investment market, what are the profit differences between the two different modes? Let’s see the following data analysis.

Operation Efficiency

❑Output per unit area

Dry cleaning store: $12.5 per square meter ($5,000 monthly revenue for a standard 40-square-meter store)

Self-service laundromat: $35.8 per square meter ($10,750 monthly revenue for a 30-square-meter store)

❑ Manpower effectiveness

Dryer cleaning store: 3.5 technicians (including 1 certified dry cleaner)

Self-service laundromat: support unattended operation (APP control rate 92%)

Profit Model

❑ Ratio of profit

The gross profit margin of dry cleaning stores: 62 % (After removing chemical loss)

The gross profit margin of self-service laundromats: 78% (30% premium on peak pricing)

❑ Payback period

Dryer cleaning store: 18-24 months. (successful case in Hanoi)

Self-service laundromat: 10-14 months. (data from high-traffic areas in Bangkok)

❑Value-added revenue

Dryer cleaning store: Additional services contribute 23% of the revenue. 

(leather goods maintenance/clothing alteration).

Self-service laundromat: Non-laundry revenue accounts for 18%. 

(revenue from vending machines/advertising space rental).

Area Selection

❑ Preferred Areas for Self-service Laundries

Around universities: The average daily footfall of a single store is 127 people.

 (measured in the university town of Manila).

Tourist areas: The equipment utilization rate reaches 91% during the peak season.

 (based on samples from Phuket Island).

❑ Prime Locations for Dry Cleaning Stores

Business districts: The demand for suit cleaning accounts for 68%.

(survey in Singapore’s CBD).

High-end communities: The average annual consumption per household is $214.

(data from Mont Kiara, Kuala Lumpur).

Conclusion

From the above data, we know that in areas where the monthly rent is less than $2500 and the floating population is over 45%, the return on investment of laundromats is 37% higher than that of dry cleaning stores. When the business office density reaches 300 enterprises/square kilometers, the unit price of dry cleaning stores can be increased by 42%. We hope that the above can give some references for people who are ready to invest in the laundry service industry.