Why get into Laundry as startup

Why get into Laundry as startup

India is the second largest country in terms of population. Being the second largest opens the opportunity of an array of services needed to help the people. One such service which is necessary for the population’s survival is Laundry. A segment that even after 75 years of Independence of India, is still largely unorganized. 

There are very few establishments that have successfully penetrated into this segment, QuickClean being the actual first. The local dhobi still constitutes as the largest unorganized laundry service provider. According to a report by Inc42, Laundry sector is fragmented with close to 767K establishments. 98% of those establishments are micro-sized with less than 10 workers. 

Being the second largest has its advantages. Laundry is a segment that is a basic necessity, and because of that, its market cap is very high. The segment is expected to grow to a staggering $15 Billion by 2025. The larger the pie, the larger the opportunity for new players to come in. 

The shortest answer to why to get into the laundry as startup, is opportunity and market size. With Laundry, you get both. Below is a small calculation on what ROI in the Laundry business looks like. 

Segmentation of the Laundry Industry

Laundry services can be bifurcated into 2 categories, viz, B2B (business to business) and B2C (Business to Customer) 

A B2B establishment usually caters to retail, mobile, hospital, hotels, education campuses, multi-housing establishments, and commercial laundry to name a few. 

Business to customer is largely retail laundries catering to customers directly. These can be laundromats, local dhobis and some chain laundry services now being open in multiple cities in India. 

Market Size

Business to Customer (B2C)

According to a projection by the UN population division, the population of India is expected to cross 1.5 Billion by 2030. Considering the data and projections, an average family Indian family size is 4 individuals. This translates to 37 Crores households. The total market size of laundry with 37 crores households exceeds Rs 4Lakh crores annually. B2C contributes to the majority of shares of the laundry industry at 88%. 

Business to Business (B2B)

Commercial establishments such as pharmaceutical and healthcare companies, hospitals, hotels, housing complexes, and government public transportation services such as railways etc. establish their own in-house laundry, on-premises, for cleaning uniforms, linen etc.

It’s important and cost-efficient for commercial establishments like healthcare institutions, hotels, and housing complexes to establish their in-house laundry establishments. These are usually handy for daily and bulk cleaning like uniforms, linen etc. 

The hotel and hospitality industry is one the largest contributor to the commercial laundry industry. The total inbound tourists are expected to rise by 2028 and their contribution to the GDP of India is expected to rise by USD 492.21 Billion. 

Railway Passenger ridership has risen by 0•8%, from 828.6 crores (8,286 million) trips in 2017-18 to about an estimated 835.4 crores (8,354 million) for 2018-19, and is anticipated to rise by 0•9% to 842.8 crores (8,428 million) in 2019-20.

We have indicated the size of each industry, as a proxy, to give you an estimate of the potential contribution to the overall market.

(Source: IBEF and Railway Gazette)

The Return of Interest in Laundry Segment

Laundry has one of the highest business success rates in India. We shared a small comparison with a graphical representation of the line of businesses. With 95% success, it clearly exceeds and is the number one choice amongst new entrepreneurs. 

According to okcredit, laundry is not just successful, but among the few startup ideas that yield profit from the beginning. It can start from as low at 17,000 per month, and there is no limit. 

There’s also a nice article from Leather Lundry that talks about 9 successful startups in India that are not just growing, but also making profit. 

Unlike other startup ideas, the profit in laundry can be earned right from the get go. Quick Clean will help you out structure your laundry and will help reach the customers to get you started. 

There’s no better opportunity than now, and India, being the 3rd in the world when we compare the revenue in Laundry, has unlimited potential. 

According to Statistica, laundry has one of the highest average revenue per capita with 2.79 Quad Mil USD. 

With the abovesaid statistics and revenue comparisons, laundry is one business in which you can get into as your startup. 

How can Quick Clean help?

Quick Clean can help in every way possible you can think of. Right from the selection of the correct machine, to the actual physical set up and getting new customers. 

Since 2010, QUICKCLEAN has completed over 6,000 consultancies and assisted over 1,000 aspiring/existing entrepreneurs to enter this lucrative market, in India and the Middle East.

QUICKCLEAN workshops and seminars

QUICKCLEAN organizes workshops and seminars, pan-India, spread across not just metros and Tier-1 cities also Tier-11 and Tier-111 cities. The purpose is to create an awareness of the laundry service market, identify problems faced and present the solutions offered by QUICKCLEAN to seasoned and budding entrepreneurs.