Dry Cleaning & Laundry Services Strengths, Weaknesses, Opportunities and Threats
MARKETING
ACTIVITY
Marketing
activity in the dry cleaning sector is very limited. Few operators have
sufficient finance to devote funds to effective above-the-line marketing. The
advertising that does take place tends to be restricted to local newspapers.
Location is a key aspect in the success of stores, with consumers opting to
give business to cleaners convenient to them. In-store advertising —particularly
window posters and flashes — also draws consumer attention to particular
seasonal or ongoing promotions and can be effective.
Home
pick up and delivery businesses are slightly different. In these cases, leaflet
drops through doors may encourage trade. Word of mouth has also contributed to
developing the market, particularly in areas such as personal laundry services.
According to White Knight, over a third of new business is attributed to
recommendation.
Exhibitions
UK
exhibitions include:
• The
Cleaning Show UK show took place at the National Exhibition Centre (NEC) in
Birmingham from 1st to 3rd March 2005. The next show is scheduled for 2007
• Hotelympia
will take place from 20th to 24th February 2006 at ExCel in London
• The
Coin Op Laundry Show takes place every 2 years under stewardship of the
National Association of the Launderette Industry (NALI); in 2004, the show took
place in October at the Royal National Hotel in London.
Strengths,
Weaknesses, Opportunities and Threats
STRENGTHS
• The
UK economy has been shifting towards a service base with opportunities for work
wear and dry cleaning of corporate clothing.
• Outsourcing
is an established business practice in the UK, particularly in sectors such as
hospitality and healthcare.
• For
many items of clothing there is no alternative to dry cleaning.
• Areas
such as the medical and food sectors are bound by legislation to follow strict
hygiene codes, and these can be tailored by textile groups.
• Retail
dry cleaning and laundry services are very accessible for most through local
stores or pick up services.
• The
corporate sector is well served, with international brands as well as local and
regional operatives.
• Larger
businesses benefit from scale economies.
WEAKNESSES
• The
corporate sector, in particular, is reliant on secondary demand generated in client
industries. As such, it is very exposed to wider economic trends.
• The
supply and consumer base are both very fragmented, which makes effective
promotion of the sector difficult.
• Retail
sales can also be greatly affected by external factors, such as fashion, the
weather, etc.
• The
sector is mature and as such growth opportunities are limited.
OPPORTUNITIES
• Retail
dry cleaners can extend their service offer into laundry and special finishes,
as well as other clothing care areas, such as leather, if they choose.
• The
ongoing shift towards service-based industry continues to present more opportunities
due to the importance of presentation in customer-facing sectors.
• Door-to-door
retail and corporate services are still being expanded.
• The
growth in single and dual households offers opportunities for greater business.
THREATS
• The
development of lower maintenance fabric and clothing may reduce demand or
negate the need for some services.
• The
sector is subject to stringent legislation, and concerns about chemicals and
the environment may lead to further restrictions.
• Despite
consolidation in the market, there remains an oversupply in the market which
depresses prices.
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