Many of the organised players are taking the franchise route for expansion and the industry is emerging as a profitable venture.
A largely-unorganised car wash market was considered a small business opportunity only until a few business-minded people observed the flaw in the traditional approach of using rugged cloth for car-wash. They introduced us with some high-end equipment used in car washing, and are now organising the car wash industry once and for all.
The car wash industry is witnessing an exponential growth with the increasing sale of passenger cars and demand for organised car wash outlets. Many of the organised players are taking the franchise route for expansion and the industry is emerging as a profitable venture.
Let’s take a sneak-peek into the organised car wash industry and explore why it is growing to become a lucrative business opportunity.
In a typical Indian scenario, one can imagine a cleaner boy taking a bucket full of detergent-water solution and a small cloth, washing all the interiors and exteriors of the cars with the same rag. However, the typical Indian car washing was never a perfect way of car washing.
A car is considered as one of the most luxurious assets in a household, and it had always been washed the wrong way. A list of high-end machines such as high pressure cleaning machines, spray extraction machines, high powered vacuum cleaners, and steam cleaners etc are used in a professional car wash industry and it was an unknown phenomenon in the Indian scenario. This created a niche in the Indian car wash market and made entrepreneurs foray into an organised market for car wash.
There’s a huge demand for organised car wash outlets as existing outlets have been able to cater to not even 1% of the total running cars in India, as per recent reports. This has created avenues for entrepreneurs to opt for franchise route for expansion so that they could fill in the void and make revenue.
Low-Investment with Cost Effective Model
The unique selling proposition of a car wash business is that it is a low investment business opportunity. While starting an independent venture, the equipment can cost you around Rs 17-25 lakhs and other investment like real-estate and miscellaneous can take up the cost to Rs 50 lakhs, which is a low-cost opportunity in itself.
While investing in a franchised outlet of an already established brand, a lot of errands can get cut-off. Exppress Car Wash, one of the biggest brands in car wash market, offers a franchise opportunity in an investment of just Rs 10-20 lakhs in which, franchisees are provided with complete guidance and training to run their outlets and are given sales, marketing, technical and operational support.
Being a low-investment opportunity itself and combined with a cost-effective business model like franchising, the car wash market becomes a lucrative opportunity for entrepreneurs.
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