Best Countries in Southeast Asia for Self-Service Laundry Investment

Laundromats are popular in Southeast Asia, but consumption habits vary. Which countries are more suitable for investing in laundromats? Let’s take a look at the following data sharing.

❑ Indonesia

● Population and demand potential

Indonesia is the country with the largest population in Southeast Asia (about 270 million), and young people under the age of 30 account for more than 60%. With the accelerating urbanization process, a large number of young people and urban white-collar workers have a strong demand for convenient laundry services.

● Consumption stratification

Per capita disposable income is low (about $5,000). Consumers pay more attention to cost performance, and the low-cost model of the laundromat fits the market demand.

● Market vacancy

Second- and third-tier cities have low laundry service coverage and relatively dispersed competition, which is suitable for early layout.

❑ Vietnam

● Economic growth and urbanization

Vietnam’s GDP growth rate has remained above 6% in recent years. The influx of manufacturing and foreign capital has driven a surge in urban population, and large cities such as Hanoi and Ho Chi Minh City have dense housing so the demand for laundromats has great potential.

● Younger trend

The proportion of young people is high. Their consumption habits are biased towards convenient services. Also, the awareness of health and environmental protection is gradually increasing. As a result, green laundry technology may become a differentiating selling point.

● Policy support

The government encourages small and medium-sized investors to enter the service industry, and the franchise model can reduce operational risks with the help of brand effect.

❑ The Philippines

● Demographic dividend

The Philippines has one of the fastest-growing populations in Southeast Asia, with an average age of just 25. The student population is large and the demand for laundromats around campus is steady.

● Infrastructure Gap

Urban household washing machine penetration is low, and the water and electricity costs are higher. The laundromat intensive operation can reduce the cost.

● Online channel potential

Although it is given priority to offline consumption, the popularity of e-commerce platforms (such as Shopee) could promote the development of online booking laundry services.

❑ Thailand

● Tourism economy drive

Bangkok, Phuket, and other tourist cities have a large flow of tourists. The hotels and short-term rental apartments have a high demand for self-service laundry services, which can expand the B-end cooperation. 

● Opportunities in the high-end market

The size of Thailand’s middle class is expanding, and the demand for quality and environmental protection is increasing, so the combination of smart devices (such as scanning code payment and real-time monitoring) in laundromats is more attractive.

● The competitive environment

There are many traditional laundries, which need to form an advantage through 24-hour operation and differentiated services (such as clothing care).

❑ Malaysia

● Mature markets and challenges

Laundromats in cities such as Kuala Lumpur have become more popular but can still attract customers through community-based operations (such as incorporating convenience stores) or environmental concepts (phosphorus-free detergents).

● Multicultural adaptability

Multi-ethnic countries need to take into account the consumption habits of different ethnic groups, such as providing multilingual user interfaces or customized services.

❑ Singapore (Not recommended)

● High market saturation

The self-service laundry industry in Singapore is highly competitive.

Rental and labor costs are high.

The penetration rate of home washing machines is high.

The market growth space is limited.

● High-end trend

Consumers are more inclined to choose full-service laundry brands or luxury care, and laundromats have smaller profit margins.

❑ Comprehensive Proposal

● First-selected countries

Indonesia and Vietnam.

Both of them have large young populations, rapid urbanization, and low penetration of laundry services, making them suitable for rapid market capture with a cost-effective model.

● Second-selected countries

Philippines, and Thailand.

The student population in the Philippines and tourism in Thailand offer opportunities to differentiate operations but with local competition and cost control in mind.

❑ Key Success Factors

● Location strategy

Give priority to the surrounding areas of universities, dense residential areas, or emerging industrial areas.

● Technology upgrade

The introduction of smart devices (such as APP booking and mobile payment) can improve convenience.

Kingstar commercial washing machine with coin payment, scan code payment, credit card, and central payment system functions, is suitable for a variety of payment scenarios. It has a variety of languages, which is suitable for different scenarios.

● Environmental protection positioning

The use of energy-saving equipment and green detergents is in line with the trend of health awareness of Southeast Asian consumers.