Industry Overview and Data Support
According to a report by Grand View Research, the global laundromat market size will reach 55.48 billion US dollars in 2023 and is expected to grow at a compound rate of 6.8% from 2023 to 2030. The differentiated development of different service models is supported by different customer groups and consumer behavior data.
Laundry Classification
❑ Traditional coin-operated laundry
Traditional coin-operated laundry accounts for 42 percent of the global self-service market, with students accounting for 38 percent (according to the American Laundry Association), blue-collar workers (27 percent), and older users (19 percent over 65).
●Typical case:
The Tokyo “Coin Wash” chain has opened 23 stores within 3 kilometers of the university. The average daily customer flow of a single store is 150 people, the cost of a single laundry is 3-5 US dollars, and the return on investment period is about 18 months.
❑ Smart Card-operated Laundry
Smart card-operated laundromats have a compound annual growth rate of 8.3% (higher than the industry average).
● The major groups: 25-40 white-collar workers accounted for 61%. Their credit card hold rate was 92%.
For example, the “Laundry Pro” in New York is equipped with a smart cabinet system. Users can make an appointment to pick up the wardrobe through the APP. The usage rate increases by 40% during off-peak hours. People spend between $8 and $12 per purchase and recharge their stored-value cards for an average of $65.
❑ Mobile payment laundry
The number of laundries using mobile payments will reach 28% by 2023, up 117% from 2020. Among them, 54% are 18-25 years old, and Apple/Android Pay usage is 89%. At present, the “washing” store in Shenzhen, China has realized the whole contact-free service and 16 items of laundry progress can be viewed in real-time through the small program on a smartphone. The unit price of customers is 15-20 yuan, and the re-purchase rate is 32% higher than the traditional mode.
❑ Kingstar equipment
With the popularity of intelligent applications now, many laundromats are often a combination of multiple payment methods. Then in the initial stage of investment, the payment method needs to be taken into account when considering the equipment selection.
For example, Kingstar’s various specifications of commercial washing machines and dryers can support different payment methods such as coin payment, scan code, credit card, central payment system, etc., bringing users a more convenient payment experience while reducing additional costs for investors.
Market Driver (Quantitative Analysis)
❑ Urbanization effect
The global urban population accounts for 57% (2023), and the per capita laundry expenditure in Beijing and Shanghai increases by 14% per year.
❑ Technical permeability
Mobile payment penetration rates are 86% in China and 67% in Southeast Asia (GSMA).
❑ Consumption upgrades
Demand for high-end laundry services increased by 22% year on year, and the luxury care segment grew by 35%.
Investment Advice
❑ Site selection reference
● College area:
Coin-operated + mobile payment composite shop (23% return on investment)
● CBD business circle:
Intelligent tank + commercial care center (Plateau efficiency increased by 40%).
● Community commerce:
O2O mode + membership warehouse (The repurchase rate can reach 68%)
❑ Pricing strategy model
● Elastic pricing:
30% discount during leisure hours (22:00-8:00)
● Value-added services:
suit encapsulation + 15%, luxury maintenance + 200%
● Package design:
A monthly card for a certain amount. Monthly cards can be introduced for users who spend more than three times a month, which is more conducive to locking users.
According to market tests, the combination strategy of data-based location selection + smart devices + dynamic pricing can shorten the profit cycle of the new store to 10 months and increase the customer retention rate to 82%. It is recommended that investors combine localized data, visit more existing laundries, understand the market situation, and make equipment investments and pricing according to the actual situation.
ADD:No.388 Xinggang Road, Chongchuan District, Nantong City, 226000, Jiangsu Province, China.
Phone: +86-13917089379
Tel:+86-13917089379
Fax:+86-0513-85663366
E-mail:[email protected]
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