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Washing and Dry Cleaning Services
BY Natalie Bryden
South Africa
21 February 2020
R 14 400.00 (ZAR)  
estimated $ 872.13 (USD) *
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Washing and Dry Cleaning Services


The South African washing and dry cleaning industry has had mixed fortunes. Stakeholders estimate that the laundry industry is growing at between 5% and 10% per annum, but dry cleaning services have been in decline for some years. Significant increases in the cost of water and electricity and unreliable electricity supply have affected 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.


Opportunities for SMEs


The laundry sector offers opportunities for SMEs as startup costs for commercial laundromats can be low, with second-hand equipment being readily available. Entrepreneurs can also start businesses from their homes with a single washing machine and very little capital. No formal training is required and very few employees in the industry have tertiary qualifications. However, competition is intense, and small laundry businesses are increasingly offering value-added services such as pick-up and delivery, and improving customer service to ensure that they can succeed.


Industry Challenges


The high costs associated with running a laundry and dry cleaning operation make this a low margin business. The industry is dependent on disposable income and a large number of South African households employ domestic workers who do household laundry. New residential developments are providing communal laundry facilities. Industrial laundries are reliant on large contracts from the hospitality and healthcare sectors, where some companies are taking laundry in-house.


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.


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