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The Washing and Dry Cleaning Services in South Africa 2020

Natalie Bryden | South Africa | 21 February 2020

The Washing and Dry Cleaning Services in South Africa 2016

Nina Shand | South Africa | 16 June 2016

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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 $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Washing and Dry Cleaning Services in South Africa 2016-06-16

R 1 900.00(ZAR) estimated $99.18 (USD)*

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Table 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

Report Coverage

The Washing and Dry Cleaning of Textiles and Fur Products report describes current conditions and recent developments including the establishment of the South African Textile Services Association (SATSA) which aims to provide the industrial laundry and dry cleaning industry with a set of professional standards. The report profiles nine companies including the only major group in the sector, Bidvest Laundry Services, which employs more than 3,000 people. Also profiled are domestic laundries and dry cleaners, Pressed In Time (Pty) Ltd which has 76 outlets nationwide, and Levingers Franchising (Pty) Ltd which has 65 outlets in Gauteng and offers numerous add-on services such as garment repair, shoe repairs and the cutting of keys.

Introduction

The South African washing and dry cleaning industry is part of the personal services sector which, according to Statistics South Africa (Stats SA), contributed 5.9% to the country’s GDP. The personal services sector recorded marginal growth of just over 1% in 2014, a little below GDP growth of 1.4% that year. Laundry performance was reported by industry stakeholders as being “flat” and there has been a significant increase in the cost of water and the price of energy. Commercial laundries were under pressure in the period under review due to a shift towards on-premise laundry operations, especially in the healthcare industry. According to a washing services consultant, the industry employs more than 50,000 people and services clients across many sectors.

Strengths

• There is room for large companies as well as SMMEs.
• Well established industry that has been in existence for almost 100 years.

Weaknesses

• Capital-intensive to start a commercial laundry
• Dry cleaning is not environmentally friendly as hazardous solvents are used.
• National association was only recently formed so not all businesses comply with industry standards.

Opportunities

• Environmentally-friendly dry cleaning and laundry services.
• Growth in tourism sector: More rooms, more laundry.
• The increase in the number of new high density residential areas which require laundromat services.
• The provision of niche and value-added services.

Threats

• Environmental issues such as the phasing out of ‘perc’ will have cost implications.
• Increase in informal work wear and fabrics that are machine washable and do not require dry cleaning.
• Increasing numbers of middle class people who can afford washing machines and tumble dryers.
• Possible compulsory compliance with SANS 10146 and other government regulations could have cost implications.
• To commercial laundries, the increase in the number of on-site, on-premise laundries.

Outlook

A positive outlook for the dry cleaning and laundry industry is dependent on improving economic conditions. However, given sluggish growth forecasts, stakeholders expect profits in this sector to remain under pressure. Long-term prospects depend on general employment growth, especially in the tourism and travel sub-sectors, and the continuing outsourcing of laundry services by government agencies. According to analysts, future growth is expected to stem from specialised and niche service offerings such as value-added services like pick-ups and deliveries. A reduction in the number of small dry cleaners is expected as upgrades to equipment and the use of more expensive chemicals in response to environmental concerns are implemented. In general the industry is expected to move towards more cost-effective technology and away from labour-intensive and energy-inefficient washing methods.

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The Washing and Dry Cleaning Services in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Washing and Dry Cleaning Services in South Africa 2020-02-21

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 7
4.1.2. Regulations 7
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 10
4.3. International 11
5. INFLUENCING FACTORS 12
5.1. Economic Environment 12
5.2. Rising Operating Costs 13
5.3. Technology, Research and Development (R&D) and Innovation 13
5.4. Labour 14
5.5. Environmental Concerns 15
5.6. Electricity Supply Constraints 16
5.7. Cyclicality 16
6. COMPETITION 16
6.1. Barriers to Entry 17
7. SWOT ANALYSIS 17
8. OUTLOOK 18
9. INDUSTRY ASSOCIATIONS 18
10. REFERENCES 19
10.1. Publications 19
10.2. Websites 19
COMPANY PROFILES 21
Atlantic Cleaners CC 21
Bidvest Group Ltd (The) 23
Cleaning Brothers CC (The) 37
Combined Cleaners (Pty) Ltd 39
Desert Charm Trading 40 (Pty) Ltd 41
Fresh Canteen (Pty) Ltd 43
Levingers Franchising (Pty) Ltd 45
Nannucci Dry Cleaners CC 48
Pressed In Time (Pty) Ltd 51