Till a few years back outsourcing domestic cleaning and laundry services was a distant thought. The country has been extremely resource rich in terms of getting domestic help for addressing every menial task around the house. However with changing lifest...
According to the recent industry reports the cleaning and laundry market in India is over Rs 5,200 crore with a growth momentum of 30% per annum. However, it is highly unorganized. The organized players constitute around 4-6% of the total retail market. Out of the organized market, 70% demand comes from the Metro cities and 30% from the tier I & II cities. Overall, there are over 4,500 laundry services providers in India with a large number of individuals (dhobis, maids etc.). The penetration of the service providers in Metro is around 1.9 outlets per 10,000 households, whereas in tier-I cities is around 0.9 per 10,000 households. Average penetration in India is around 0.2 outlets per 10,000 households or 1 outlet for every 50,000 households.
Changing Consumption Pattern
The unorganized cleaning and laundry sector which includes dhobis, maid servants, and mom-and-pop stores rules the roost. The organizational laundry segment initially got fueled by the hospitality industry. However, there is a steady growth noticed in the demands for these services in the domestic front as well. It is estimated that by the end of 2020, more than three million Indian households would be requiring laundry services on a weekly or even daily basis.
Just like laundry services, the same holds true for home cleaning services. Until recent past, cleaning services were largely catering to the corporate segment. However, this segment is also experiencing a lot of traction in the domestic sphere as well. With rising double income and time crunch both cleaning and laundry services are highly likely to be outsources to organized service providers.
Low Investment, Profitable Opportunity
The best part of these businesses is that they involve a very low investment and a quick breakeven. With rising demands for quality services in these segments, leading brands are leaving no stone unturned to provide the last mile service to the customer. From competitive pricing to safety measures to even using eco-friendly cleaning agents, each brand has its own strategy to engage the customers.