Scope of Launderettes in

India

Presented by

Sadhana mundari

Supriya badrike

Vishakha Kumari

Index

Executive summary

Background Research

Formulating problem statement

Objective

Literature Review

Hypothesis

Research design

Resources

Budget

Bibliography.

Executive Summary

The proposal presents the problem of Self Service laundries also known as Launderettes or Laundromats gaining a foothold in India.

The Launderettes have been in trend in the West since 1960’s. The first Launderette was launched in London in 1949 and they were in great trend in the 80’s.

Such kind of services are still rare in India. Growth in employment sector, increasing population, working women, crowding of urban areas, busier lives, nuclear family structures, educational hubs in all - a modern Indian society screams for the need of such laundry services to be provided in the urban areas.

A step towards this is taken some cities like Delhi, Bangalore and Chennai which is paying of good results. Plans of venturing in to other cities have been conceptualized but the growth of such establishment in terms of market available is not satisfactory.

Assuming that there is a huge market in India for such a service , ‘what are the factors which are hindering the growth of Launderettes,’ is the target of the research. The research is to be carried out for a sample group of 100 people residing in Tier 1 and tier 2 cities in India and are living independently or in nuclear setups.

The research intends to tap the consumer behaviour and attitude towards laundrettes, and factors affecting their preference of usage of such services. Analysing the youth trend in India, and global laundry trend, the research is targeted to identify the Launderettes as a Business plan and factors affecting it to be established.

Problem statement

The term coin laundry is defined as commercial-grade, self-service laundry equipment placed into service in a retail space. Launderettes have been a part of urban life since 1960’s in the west.

“ With growing population, working families, nuclear set ups, busier lives community Launderette services are the need of the hour in the urban hubs of India. Still such systems are not well established in India.

Objectives

Primary objective

1. Analyzing the market for the launderettes in tier 1 and tier 2 cities of India.a. Sub objective

To study the acceptance of launderette among students & bachelor jobbers residing outside their home town.

Literature ReviewA self-service laundry, coin laundry or coin wash is a facility where clothes are washed and dried. They are known in the United Kingdom as launderettes or laundrettes, and in the United States, Canada, and Australia as Laundromats (from the genericized trademark of the Westinghouse Electric Corporation) or washaterias. George Edward Pendray created the word "Laundromat" for Westinghouse.

Staffed laundries, employ staff to provide service for the customers. Minimal service centres may simply provide an attendant behind a counter to provide change, sell washing powder, and watch unattended machines for potential theft of clothing whereas Others allow customers to drop off clothing to be washed, dried, and folded. This is often referred to as Fluff & Fold, Wash-n-Fold, bachelor bundles, a service wash or full-service wash. Some staffed laundry facilities also provide dry cleaning pick-up and drop-off.

The evolution of self-serve laundry services have been seen in some "fluff n fold" services provided by various Laundromats.

Wash-A-Teria (United States) is an alternate name for Laundromat, especially in Texas. The first washateria so named was opened in 1936 in Fort Worth, Texas by Noah Brannen. Most laundromats and washaterias in the United States are fully automated and coin operated and generally unmanned, with many (but not all) operating 24 hours a day.

Launderettes (United Kingdom)

The first UK launderette (alternative spelling: "laundrette") was opened on 9 May 1949 in Queensway (London).UK launderettes are mainly fully automated, coin operated and are either manned or unmanned. Some may be manned during fewer hours than the operating time each week. They are generally found only in urban and suburban areas and have been common features of urban life since the 1960s. In the last two decades there has been a decline in the number of launderettes, to approximately 3000 nationally.

Britain gives an overview of Laundry industry in UK. The market size grows proportionately to the increase in population and it thrive in periods of both growth and recession. Laundries are perfect examples of passive income generators, Coin laundries generally occupy the retail space on long-term leases of 10-25 years and generate steady cash flow over the life of the lease. They are unique small businesses in that they have no inventory or receivables.

Rapidly rising utility charges, premises rent and a lower purchase cost of domestic machines have been noted as principal reasons for the recent decline. High initial launch costs, specifically for commercial washing machines and dryers, have also been commented on as reasons for fewer new entrants into the market. Furthermore, machine updates can be prohibitively expensive, which has held back premises investment.

However, most UK households have bedding (such as duvets and comforters) which are far above the capacity of domestic machines, making launderettes the only means available for cleaning them.

Many of the manned operations in the UK have added value services such as ironing, dry cleaning and service washes, which prove popular to busy professionals, students, and

senior citizens. Student accommodation blocks often have their own unmanned laundries, which are typically commercially run at a profit by the accommodation provider.

An analysis of the graph of Laundrettes in UK shows that launderettes remain a viable business; every town in Britain can support one good launderette, despite most of us having machines at home. Students and those working away from home will often not have access to a washing machine. Young professionals, particularly in London, may not have the space for one; while poorer families won’t be able to afford one. Businesses in the centre of big cities can have turnovers far in excess of the small local operations. It’s important to bear in mind that people don’t travel far to use a launderette.

The Quick Clean Laundromat, New Delhi, is the first coin laundry service in India. Established on March 1st, 2011. It started a revolution in the laundry industry of India. A brainchild of Mr Anshul Gupta the laundry has developed into a hub for students, Office goers and nearby residents where they can enjoy music while their clothes are being laundered. The revolution has begun with virtual waterless machine, and investments by Jyothy Fabric care Service Ltd. and Hindustan liver to develop efficient technologies for industry.

IFB Launderette describes the laundrette system in India in which local laundry service providers tied up with builders across the city that will be letting out space to start launderettes in large housing complexes. The retail laundry business in India is around र 5,200 crore.

The Market Research Report of Global Laundry Services Industry discusses the trends in global laundry industry, its key market segments, and gives a direction to the scope of laundry industry in future. As coin laundries do not require staffing, they generate income without the ongoing expensive of permanent staff, though they do require maintenance. Future industry trends will be dictated by environmental concerns, with tighter regulations put in place regarding the use of water, energy and chemicals.

Research design

The research would be conducted on one on one basis through questionnaires and interviews on sample group. The questionnaires will provide the data about the sample group perception towards launderettes and preference of it over others if it is launched in the area.

Target population: The target population for this research is- Individuals aged between 16-28 years living in tier 1 or tier 2 cities residing alone or in nuclear formats. The target population can be further dissected into two groups 16-21 years and 22-28 years.

Location: The research is conducted in Tier 1 & Tier 2 cities in India, areas that crowded by students and bachelor jobbers as they seem the forerunner market for launderettes.

Sample plan:

Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.

The sample group consists of 100 people and is sorted by Non probability Convenience sampling.

Schedule of study: 4 months

Nature of design: Descriptive

Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied.

Descriptive research is the exploration of the existing certain phenomena. The details of the facts won’t be known. The existing phenomena facts are not known to the persons.

Variables:-

Age Income group Marital status Working couples Data Analysis

Data Collection

The data was collected by means of online Questionnaires published on a social networking site, recording the inputs from the sample in an online spreadsheet, to access most of the sample group.

Analysis of data requires two kinds of information which are

Primary Data

Online Questionnaires

Secondary Data

Websites

Scales used

Ranking factors

1 -Most preferred / affecting factor ............................. 5 – Least preferred/ affecting factor

Data presentation:

The data would be presented with the help of bar graphs, pie-charts, line graphs to derive the conclusions

Nature and Form of the result: The result will determine whether the launderette is viable source of income in the area whether or not one should invest in it.

Resources available: Paper, mobiles, internet

Time -4 months

Budget in Rupees

Stationary , Printouts etc 300

Communication costs 200

Total 500

Limitations of study

The research is conducted online for the convenience aspect which doesn’t produce as accurate results as it would have been with Observation and Personal Interview.

QUESTIONNAIRE FOR CONSUMERS

A research is being conducted on the scope of self service laundries in India.

A self-service laundry, coin laundry or coin wash is a facility where clothes are washed and dried. They are known in the United Kingdom as launderettes or laundrettes and in the United States, Canada, and Australia as Laundromats or washaterias.

We would therefore like to ask you questions about your laundry habits and requirements. We hope that you co- operate and answer the following questions:

1. Do you reside in your hometown?a. Yes b. No

2. How do you manage your laundry?a. By yourself b. By pick up and drop off laundry services c. An occasional visit to laundry shop

3. How many times do you manage your laundry in a month?a. Once

b. Twice c. More than that. Please specify

4. You prefer doing laundry by :a. Human effort ( yourself/ someone else)b. Machinery ( yourself/ someone else)

5. Is your residence equipped with washing machine? Yes/ No. Give reason

6. If provided with machinery, would you prefer doing laundry for yourself?

Yes / No. Give Reason.

7. What kind of machinery you prefer?a. Self service coin operatedb. Manned machines wherein , there’s a person who provides you with

the service

8. How far would you go to utilize this service? Within the radius of :10 minutes ...................................................................................... 30 minutes

9. Rank the factors according to your preferences for the use of launderettes? a. Hygiene b. Service c. Cost d. Distancee. Working hours f. Any other please specify

10.How much money would you spare monthly for laundary?a. Rs.100-150 /monthb. Rs.150-300 /monthc. if more specify

11.Have you come across any of the launderette services?a. Yes b. No

12. If yes how was your experience?Very good :: Good :: Satisfactory :: Dissatisfactory :: Very dissatisfactory

13.What extra services would you want such a space to be stocked with?

a. Drying areab. Retail outlet for buying detergent and other laundry stuff c. Ironing aread. Recreational space for the waiting period while laundry is being done e. Any other ..........................................

14.Where would you preferably want such services to be placed?a. Close by to departmental stores b. Near to college campuses c. Near to recreational Zones d. In house facilities in residential areas like apartment housing and

hostelse. Any other. Please specify.

Name Age OccupationIncome / Allowance (Monthly)

Rs 1,000-5,000Rs 50,00-10,000Rs 10,000-15,000Rs 15,000-20,000Rs Above 20,000 Specify

Marital Status Married Unmarried Divorced

Date

Questionnaire for Business Persons

A research is being conducted on the scope of self service laundries in India.

We would therefore ask you a few questions about managing the laundry system. We hope that you co-operate

1. Are you familiar with Self Service Laundries or launderettes?2. What are your working hours?

3. What are the peak hours?

4. How frequently do you clean the space ?a. Dailyb. Once a week c. Twice a weekd. Thrice week

5. What measures do you take for the maintenance of hygiene in laundry?

6. What is the starting investment capital?

7. Monthly expenses in maintained of the space

8. What are the fixed costs that you incur?a. Space Rent b. Electricity billc. Water supply d. Gas connection

9. How often does the machine needs servicing ?a. Twice a yearb. Thrice a yearc. Four times a yeard. More than that . Please specify

10.Costs per service visit

11.Salaries paid to the staff members approx range

12. What are the problems faced while giving services?

13.At present what is the customer base that you cater to a. Age groupb. Professions

14.How do you solve customer issues?

Name AddressFirmContact noDate

Data Analysis

Identifying the target market 1. Age Group: 18- 30 years 2. Profession : Students and Employees3. Income Group

4. Preference for Laundry Management

a. The pie chart depicts that most of the target market does theLaundry service on their own. The pick and drop serviceIs also in demand.

InterpretationSince the population comprises mostly of students and new jobbers, they may not be economically stable in using laundry services.

Human effort v/s machinery

The above pie chart shows the percentage of target market preffering human effort in comparision to machinary.

More than 50% of the population prefer human effort rather than a mechanised process.

Interpretation People might be concerned about care of their clothes and hygiene factor.

The graph depicts that the population preferance towards doing laundary by self in respect to someone else.

Maximum population favours doing laundary by self rather than letting it being done by someone else.

InterpretationPeople might think that they can take care of their clothes in a proper way rather than someone else.

5. Frequency of Laundry Management

The pie chart depicts the frequency of laundary management of the population.

About 1/3 of popuation manages laundary twice in a week while ¼ does is more than five times a week.

6. In house machinary

The pie chart shows the populaton having washing machine .More than 50% of the population owes washing machine.InterpretationSince the population comprises mostly of students and new jobbers , keeping a washing machine is not economically viable.

7. Willingness to do laundry by one self if machinery is provided

The pie chart depicts the willingness of population towards doing laundary by machine if provided to them.Maximum population is willing to use the machinery if provided..Interpretation

Time is an important factor why most of the people prefer doing laundry by machine rather than doing it by self.

8. Machinery preferred

The above pie chart shows the preference of self service machines over manned machines.64 percent of the population is in favour of self service coin operated machines rather than manned machines.

9. Proximity approx within 10 to 15 mins of radius

The graph shows the radial proximity of service in scale of minutes.

Most of the population Is in favour if the service is within time range of 10-15 minutes.Interpretation

It can be interpreted that People don’t want to spent much time in travelling far for using launderettes.

10.Factors responsible for use

The graph shows the preference factors affecting the use of launderettes.More than 60% of the population prefer hygiene as a major factor affecting use of launderettes.InterpretationAccording to the graph it can be interpreted that hygiene plays an important role in influencing people for launderettes.

11.Budget for laundry management per month

The pie chart depicts the population’s monthly budget for laundary.Half of the population has a monthy budget of Rs.100-150.While almost the other half has Rs.150-300 as monthly budget for laundary.

InterpretationIt can be interpreted that since the population comprises of students and new jobbers ,they don’t have too much money to spend on launderettes.

12.Experiences from other Launderette services is mostly satisfactory

The above pie chart depicts the experience of population for launderettes.More than 50% population had satisfactory experience.6% had very good experience.29% had good experience. While the remaining 11% population had dissatisfactory experiences.

InterpretationMore than 50% of the population had satisfactory experience with laundry means they are willing to continue it.

13.Extra services to be provided

The graph shows the preference of extra laundary services to be provided .Most of the population wants an ironing area to be a part of the extra Services within laundrettes.

14.Placement of Launderettes

The graph shows the population preference towards placements of launderettes.Most of the studied population prefer inhouse facilities rather than going out for such services.

Conclusions More than half the population does laundary by themselves rather than using a machinery

for it.Interpretation

the population wants to take care of their cloth on their own rather than relying on someone else.

The population is willing to use machinery if provided. People don’t want to spend much time for visiting launderettes and prefer it to be near by

their house. Most of the People want launderettes in-house facilities in apartment housing and hostel. Hygiene is the most important factor which influences the people preference towards

launderettes. The monthly budget for most of the people is Rs.100-150. The experience of launderettes had been satisfactory among most of the people. Most of the population prefer Ironing as a part of extra services by launderettes.

Looking through the results and the responses of the population it can be concluded that there is a huge scope of launderettes in India.

Suggestions

Launderette should be located in apartment areas rather than near to shopping malls.

Special attention should be given to Hygiene as it is one of the most important factor why people could switch on to laundry by self.

Ironing should be included as a part of launderette services. As launderette is mostly used by students and new jobbers keeping in mind

their willingness towards spending on launderettes ,the cost per unit load should not exceed more than Rs.200.

The requirements for launderettes as a business model are :1. Starting investment capital: RS 25 Lacs – 80 Lacs approx 2. Miscellaneous costs for maintenance of space Rs 800- 10003. Fixed costs Incured

a. Space Rs 15000b. Electricty 8000

4. Machine Servicing : thrice a year 5. Costs per service vist is below RS 4000

6. Total Staff Salary : Rs 12000-160007. Working hours : 10.00 am – 10.00 pm

a. Peak hours : 6.00 pm – 9.00pmb. Peak days : Weekends

8. Hygiene related issuesa. Cleaning of space : daily

9. Customer base Catereda. Age group 20-30 years b. Profession Students and employees

10.Various Problems Faced while giving servicesa. Water Scarcityb. Space managementc. Employee management

11.Problems faced : No major problems because launderettes do not deal with stain removal and dry cleaning

Bibliography

Books

Research Methodology by Kothari CR

Research Methodology A step by step Guide for Beginners Second Edition – Kumar Ranjit

Internet

http://www.dnaindia.com/money/report_ifb-launderette-aims-to-wash-out-local-dhobis_1028378

http://www.cleanindiajournal.com/laundromatsystem

http://www.reportlinker.com/ci02463/Laundry-Services.html

http://www.coinlaundry.org/resources-education/laundry-industry-overview/

http://uk.businessesforsale.com/uk/buying-a-launderette.aspx

http://www.bbc.co.uk/news/magazine-10957093