Neil Banerjee
In recent years, the laundromat business market in India has experienced significant growth, driven by various factors such as urbanisation, changing lifestyles, and increasing awareness about hygiene. The laundromat industry in India is offering a promising avenue for aspiring entrepreneurs and the dynamics of its market is changing. To understand this shift and change in dynamics, we need to first look into the key factors driving its expansion.
India is projected to add 416 million urban dwellers by 2050, fuelling the demand for laundry services. The middle-class population, estimated to reach 475 million by 2030, contributes to this spiralling demand.
“Consumer preferences towards outsourcing laundry are evident, with 56 per cent of Indian consumers preferring professional services. The laundry care market is expected to grow at a CAGR of 6% from 2020 to 2025, driven by increasing hygiene awareness. The laundry market in India is predicted to reach Rs 76.5 billion by 2024,” says Gaurav Nigam, Founder and Director, Tumble Dry.
Unveiling key drivers
The laundromat business market in India has grown exponentially, thanks to several key drivers. According to Arunabh Sinha, Co-founder of Uclean, “Increasing urbanisation and the busy lifestyles of people has led to a growing demand for convenient and time-saving laundry services.” Gunjan Taneja, Co-founder of Uclean, points out, “The rise of the middle-class has resulted in higher disposable incomes and greater awareness about the benefits of professional laundry services.”
Actually, it were the unsatisfactory traditional laundry solutions that truly drove the demand for laundromats. Sinha emphasises, “Latent demand has always been there because people were not happy with traditional laundry solutions like housemaids and local dhobis.” UClean recognised this latent demand and positioned itself as a better alternative. With high-quality laundry services, convenient pickup and drop options, and an easy-to-use app for bookings, UClean successfully caters to the needs of dissatisfied customers.
Most companies are focusing on technology, innovation, and customer service to build a loyal customer base.
“In the last two decades, we have seen innovations in hardware, products and services in the laundry Industry. We have witnessed the shift to automated processes with wet cleaning, hydrocarbon shirt pressing and form-finisher machines, the rise of sustainable and eco-friendly liquid detergents and biodegradable packaging, a surge in the demand for shoe and sneaker cleaning services, and laundry by kg or wash and fold and wash and iron – for regular wear items. This has given rise to Standalone, Franchised and Cloud Laundries,” says Rishi Rathod, Founder and CEO, WeClean.
Strategies behind clean profits
- Recognising market opportunities
There are immense opportunities for entrepreneurs in the laundromat business. Entrepreneurs keen on entering the laundromat business market can leverage the rising demand for professional laundry services in India. By understanding customer needs and market trends, they can position their businesses strategically to attract a loyal customer base.
“Customers now seek hassle-free and time-saving solutions, value consistency in service quality, and prioritise convenience. Tumble Dry has adapted to these changing demands by leveraging technology to offer online bookings, doorstep pickups and deliveries, and real-time order tracking,” says Nigam.
- Focusing on customer satisfaction
A customer-centric approach is the key to success. By providing high-quality service, maintaining cleanliness, and utilising advanced laundry equipment, entrepreneurs can build trust and loyalty amongst their customers.
“We understand that laundry service is a personal experience, and we strive to deliver the best possible service by training our staff and continuously improving ourselves based on customer feedback. Additionally, we have plans to expand our service portfolio to become a one-stop cleaning solutions brand, catering to various customer needs beyond just laundry,” says Sinha.
- Leveraging technology and innovation
Innovative solutions can only be brought to fruition when we harness the technology to promote efficiency. Embracing technology and innovative solutions can streamline operations and enhance the overall customer experience. From automated payment systems to real-time tracking of laundry statuses, integrating technology can provide a competitive edge in the market.
With more players entering the market, most of them are trying to find an edge by offering something different. Sinha states, “We will continue to invest in technology and innovation to enhance the customer experience.”
Riding the wave of trends and innovations
The laundromat business in India is not immune to industry trends and innovations. One significant trend is the growing focus on sustainability, as consumers become more conscious of the environmental impact of traditional laundry practices.
“We have invested in a range of green initiatives, including a switch to biodegradable packaging and green detergents,” says Taneja.
Companies are also exploring the adoption of advanced laundry technologies that minimise water and energy consumption while delivering superior cleaning results. This emphasis on sustainability not only aligns with the evolving preferences of environmentally conscious customers but also promotes responsible laundry practices.
“Tumble Dry has implemented several initiatives to promote sustainability and environmental consciousness within the laundry industry. The company adopts eco-friendly practices by using energy-efficient machinery and reducing water consumption. Tumbledry also uses eco-friendly detergents and fabric softeners,” points out Nigam.
Another notable trend in the laundromat business is the integration of digital platforms and mobile applications.
Sinha underlines, “Our mobile app allows customers to easily schedule pickups, track their orders, and make payments online. By leveraging technology, we have created a seamless and user-friendly experience for our customers, ensuring that their laundry needs are met efficiently.”
What’s spinning for the future
Looking ahead, companies are optimistic about the future prospects of the laundromat business in India. They foresee continued growth driven by factors such as urbanisation, rising disposable incomes, and the increasing preference for convenience. As more customers realise the advantages of professional laundry services, the market will continue to expand by leaps and bounds.
Technology will undoubtedly play a crucial role in shaping the future of the industry. Most companies plan to leverage technology further to enhance customer experiences, streamline operations, and drive innovation. Businesses are thus aiming to leverage data analytics to gain valuable insights into customer preferences and behaviour, enabling them to offer personalised services and targeted marketing campaigns.
UClean is actively exploring the potential of automation and artificial intelligence (AI) in their operations.
“We are piloting AI-powered sorting and folding machines in some of our outlets to improve operational efficiency and deliver faster turnaround times. By automating certain processes, UClean aims to optimise productivity and meet the increasing demand for quick and efficient laundry services,” Sinha asserts.
Businesses are focusing on expansion and have ambitious plans to penetrate deeper into the Indian market. Some of them are exploring opportunities abroad with plans to expand operations, while also tapping into the potential of Tier-II and Tier-III cities.
Dirty laundry to big business
The laundromat business market in India is surging, courtesy changing lifestyles, galloping urbanisation, and demand for convenient and high-quality laundry services.
With differentiated strategies, businesses are striving to stay ahead of the competition. By investing in technology, expanding their franchise networks, and prioritising customer satisfaction, companies like UClean and Tumbledry maintain their market leadership and remain well-positioned for future growth.
As the industry evolves, keeping pace with the trends and innovations is an important aspect to focus on. Embracing sustainable practices, adopting digital platforms, and exploring the potential of automation and AI are imperative for its continued growth. These initiatives not only enhance operational efficiency but also cater to the evolving preferences of customers who seek convenience, sustainability, and superior service.
“The laundry industry is evolving due to the rise in the working population and the availability of services creating the demand for it. In a family where the husband & wife are both working, once they start outsourcing their regular wear items to laundries and the habit is built in a few years’ time, there will be no going back to doing it at home, provided consistent quality is maintained by the service provider,” says Rathod.
