Report Coverage
This report focuses on Washing and Dry Cleaning Services and includes information on the state of the industry and new trends. There are profiles of nine companies including commercial laundries such as those housed in The Bidvest Group, which owns Boston Launderers, Montana Laundries and First Garment, as well as Combined Cleaners, trading as Spot-On Cleaners. Profiles of franchise operators include Nannucci, Levingers and Pressed In Time.
Introduction
The South African washing and dry-cleaning industry is included in the personal services sector which, according to Stats SA, contributed 5.4% to the country’s GDP in 2018. Laundry industry growth was reported by industry stakeholders as being between 5% and 10% per annum, while dry cleaning services have been declining year-on-year for a number of years. Significant increases in the cost of water and electricity and unreliable electricity supply have had an impact on the industry. Commercial operations that provide services for industries such as healthcare have been affected by an increased number of on-premises laundries. The industry employs more than 50,000 people and services clients across many sectors.
Strengths
• Laundry services demand is growing in urban areas.
• There is room for large companies as well as SMEs.
• Well established industry that has been in existence for almost 100 years.
Weaknesses
• Capital-intensive to start a commercial laundry business.
• Dry cleaning industry growth is declining.
• Dry cleaning is not environmentally friendly as hazardous solvents are used.
• Expensive retail space may be required.
• No industry oversight to force businesses to comply with industry standards.
Opportunities
• Growth in tourism translates to higher laundry spend.
• Large dry-cleaning companies can achieve economies of scale by using centralised cleaning operations to serve multiple retail locations.
• People are increasingly seeking out companies with environmentally friendly dry cleaning and laundry credentials.
• The increase in the number of new high-density residential areas which require laundromat services.
• The provision of niche and value-added services, such as tailoring and pick-up and delivery.
• Use of technology to track customer satisfaction and bolster marketing efforts.
Threats
• Compliance with new regulations may result in some companies having to change the machines and the chemicals used.
• High prevalence of domestic workers in South Africa.
• Increase in informal work wear and fabrics that are machine washable and do not require dry cleaning.
• Increased minimum wage could affect operating costs.
• Low barriers to entry and threat of new entrants.
• Per capita disposable income is inversely related to demand for laundromats. An increasing number of middle-class people can afford washing machines and tumble dryers.
• Possible compulsory compliance with regulations that will have cost implications.
• Preferences for at-home washing.
• Small coin-operated machines have been installed in a number of residential complexes.
Outlook
Industry growth will remain in the single digit range in the laundry business, while it will continue to decline in the dry-cleaning sector. Long-term prospects depend on economic and employment growth, especially in the hospitality sector and the continued outsourcing of laundry services by hospitality, healthcare and government agencies. A shift in customer preferences and increased competition will continue to impact the industry. Companies that want to attract young customers will have to use modern marketing techniques, adopt green and environmentally friendly practices, offer on-demand services, and continually monitor customer satisfaction levels.
The Washing and Dry Cleaning Services in South Africa
2020
Full Report
R 1 900.00(ZAR) estimated $105.97 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.18 (USD)*
Historical Reports
The Washing and Dry Cleaning Services in South Africa 2016-06-16
R 1 900.00(ZAR) estimated $105.97 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Supply Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 3. | SIZE OF THE INDUSTRY | 4 |
| 4. | STATE OF THE INDUSTRY | 4 |
| 4.1. | Local | 4 |
| 4.1.1. | Corporate Actions | 5 |
| 4.1.2. | Government Laundries | 6 |
| 4.1.3. | Regulations and Standards | 7 |
| 4.1.4. | Enterprise Development and Social Economic Development | 8 |
| 4.2. | Continental | 9 |
| 4.3. | International | 10 |
| 5. | INFLUENCING FACTORS | 11 |
| 5.1. | Economic Environment | 12 |
| 5.2. | Social Change | 12 |
| 5.3. | Health and Hygiene | 12 |
| 5.4. | Rising Operating Costs | 13 |
| 5.5. | Technology, Research and Development (R&D) and Innovation | 13 |
| 5.6. | Labour | 15 |
| 5.7. | Environmental Concerns | 16 |
| 5.8. | Electricity Supply Constraints | 17 |
| 5.9. | Seasonality | 17 |
| 6. | COMPETITION | 18 |
| 6.1. | Barriers to Entry | 19 |
| 7. | SWOT ANALYSIS | 19 |
| 8. | OUTLOOK | 20 |
| 9. | INDUSTRY ASSOCIATIONS | 21 |
| 10. | REFERENCES | 21 |
| 10.1. | Publications | 21 |
| 10.2. | Websites | 21 |
| APPENDIX 1 | 23 | |
| Summary of Notable Players | 23 | |
| COMPANY PROFILES | 26 | |
| ATLANTIC CLEANERS CC | 26 | |
| BIDVEST GROUP LTD (THE) | 28 | |
| COMBINED CLEANERS (PTY) LTD | 38 | |
| DESERT CHARM TRADING 40 (PTY) LTD | 40 | |
| LEVINGERS FRANCHISING (PTY) LTD | 42 | |
| NANNUCCI DRY CLEANERS (PTY) LTD | 45 | |
| PRESSED IN TIME (PTY) LTD | 47 | |
| SERVWORX INTERGRATED SERVICE SOLUTIONS (PTY) LTD | 49 | |
| T AND D INVESTMENTS (PTY) LTD | 51 |
