The Development of Laundry Industry in Hong Kong in 5-10 Years

Development of Technology and Automation

It is expected that the level of digitalization and intelligence in the laundry industry will increase and higher in the future. The use of automatic equipment increases quickly. For example, intelligent washing machines that can automatically identify the material of clothes, and automatically adjust laundry programs and parameters.

In the Kowloon Bay Industrial Zone, enterprises have introduced intelligent sorting systems, which automatically identify customer information and clothing materials through RFID chips, and improve the efficiency of traditional sorting by 300%. It is worth noting that the Hong Kong Productivity Council's 2023 industry report shows that the average monthly processing capacity of laundry factories using smart laundry equipment reaches 350,000, which is 2.7 times higher than the traditional model.

Eco-friendly Laundry

In the face of the strict regulations of the Hong Kong Government's Cleaner Production Partnership Program, laundry enterprises pay more attention to the adoption of eco-friendly laundry processes, laundry equipment, and laundry detergents to reduce pollution, reduce energy consumption, and reduce the emission of chemical materials.

Also, environmental awareness will further promote the use of sustainable materials and processes so the market will develop high-end and individualized services.

In addition, the recycling of old clothes both meets environmental protection awareness and brings new business development points to the enterprises.

The Mills in Hong Kong reached cooperation with 12 laundry companies through a used clothes recycling project. 2023 processing of waste textiles is up to 380 tons, and the recycling rate is 73%.

The Expansion of the Market Scale and the Innovation of Management Models

❑ There are many factors for the increase in laundry services.

● the increase in the consumption requirements

● the improvement of people’s lives

● the change in consumption concept

● the aging tendency of society (more nursing houses and more needs for medical services)

Data from the Hong Kong Census and Statistics Department show that the proportion of elderly people over the age of 65 will exceed 30% in 2030, driving a surge in demand for medical linen washing. As a result, the models of operating should be innovated accordingly.

❑Transformation

Traditional laundry ----Internet platform management

Front stores with back factory ---- Centralized Factory

In the future, there may be only offline stores that pick up linen and then send linen to the centralized factory, realizing the massive, professional production and increasing efficiency and quality while reducing costs.

In addition, whether there will be a shared laundry model or not is worth paying attention to.

Tendency of Professional and High-end Service 

With the development of the industry, the demand for professional laundry and dyeing technology personnel will increase, and enterprises will pay more attention to the training and introduction of talents. The relevant training and certification system will continue to improve.

In addition, high-end services will promote the growth of the market. For high-income people who have higher requests for quality customers, the high-end wash service market will continue to expand. Companies tend to provide more personalized and customized services, such as luxury maintenance and special clothing treatment, to meet the differentiated needs of customers.

Industry Integration and Branding Development 

With the fierce competition in the industry, the integration speed of the industry will accelerate in the future, and some powerful enterprises will expand their market share through mergers and acquisitions, chain franchises, strengthen brand building, and form brand effect. Improve the influence and reputation of the brand, while promoting the brand, and improve the quality of service, in order to strengthen the competitiveness of the market.

Conclusion

The Hong Kong Laundry Industry Association predicts that by 2028, the scale of the industry will exceed 7.8 billion Hong Kong dollars, in the digital transformation of the traditional service industry, it is necessary for enterprises to grasp the integration of the Internet of Things and environmental technology opportunities, but also to deeply understand the unique consumer psychology of people in Hong Kong “the pursuit of quality in the fast pace”.