Analysis of the market of laundry services for the population in India
The relevance of research
Despite the fact that in India almost every resident has a washing machine, people still use laundry services. Many do not have the time or desire to do laundry. It is easier for such consumers to pay a small amount of money and get clean, ironed linen.
Purpose of the study
Analysis of the state of the market for laundry services for the population, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market for laundry services for the population
Content
Part 1. Overview of the Indian Laundry Market
1.1. Definition and Characteristics of the Indian Laundry Market
1.2. Dynamics of Indian laundry market volume, 2015-2019
1.3. Market structure by type of service provided in India
1.4. Laundry Market Structure by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis in the Laundry Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Laundry Consumption Analysis
3.1. Estimated per capita laundry consumption
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the laundry market until 2024
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian Laundry Market
1.1. Definition and Characteristics of the Indian Laundry Market
The laundry market in this study is understood as a set of enterprises providing laundry services for individuals, forming the market supply, the number of users ...
Laundry services - laundry services and subsequent processing of linen. As a rule, laundry services are provided by dry-cleaners (dry-cleaners-laundries) in the complex …
Diagram 1. Number of household facilities providing laundry services in India in 2010, 2015-2018, units
According to … data, in India in 2018, there were … facilities providing laundry services. It is worth noting that in the period from 2010 to 2015, the number of such objects … from … to …, that is, by …% (by … units), but in 2016 and 2017, … quantities were observed - apparently, the number of newly opened objects was compensated by … In 2018 alone, the increase was …, as a result, it amounted to …% by 2017. TO …
It can also be noted that the popularity of laundry services compared to other types of household services … in 2015 compared to 2010 (the share in the structure was …%) and then until 2018 remained …
The laundromat market in India is characterized by the following features:…
1.2. Dynamics of Indian laundry market volume, 2015-2019
Consider the dynamics of the market volume of laundry services.
According to GidMarket’s calculations based on the data of …, the volume of the laundry services market in 2019 at current prices amounted to … billion Rs., … compared to 2018 by …%. At the same time, minus inflation (an increase in the cost of laundry services), the market is …% compared to 2018.
Throughout the analyzed period, there has been observed … market volume in monetary terms at current prices (increase from …% to …% per year), while it can be concluded that annually the only growth driver is …
According to … in the period from 2015 to 2018, the index of physical volume of laundry services in India fluctuated from …% to …% over the period, the base index was …%, which confirms the absence of …
In the medium term, market dynamics will depend mainly on …
1.3. Market structure by type of service provided in India
The main technological operations of the laundry processing process in the laundry: washing, spinning, drying and ironing.
In the structure of linen processing in the process of providing laundry services, more than ... (...%) is occupied by ..., then in descending order of share: ... - ...%, ...
1.4. Laundry Market Structure by Union Territories
Diagram 5. Laundry service provision structure in India by Union Territories, 2015-2019, %
In terms of the geographical structure of the laundry services market in 2019, …% of the market volume is accounted for by … the Union Territories, which is due to more … Nevertheless, the share of …Union Territories since 2015 …, which indicates an increase … In second place in terms of market share - … Union Territories (share increased from …% to …% over the period), in the third – …
1.5. Assessment of current trends and development prospects of the studied market
Key trends in the laundry market include:
...
Among the prospects of the analyzed market are:
...
1.6. Assessment of factors affecting the market
Macroeconomic factors affect the dynamics of all sectors of the Indian economy, including the laundry market. The main groups of factors are: economic, political, social and technological.
Economic
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects the total value of goods, works and services that were produced and provided in the country in a year. Gross domestic product is the main indicator on the basis of which the level and pace of the country's economic development are determined.
Chart 6 shows India's GDP growth rate from 2014 to 2019 at comparable prices (at 2016 prices). Until 2014, the growth rate was …In 2015, which was the peak of the crisis in the state, … GDP amounted to …% compared to the previous year in 2014, and …
In 2016, GDP …, following the results of 2017, this indicator demonstrates … dynamics, namely …% compared to the previous year. According to …, the acceleration of India’s GDP growth rates to …% in 2018 is largely due to … At the end of 2019, the index
GDP amounted to …%.
In general… the influence of this factor.
...
Demographic (social)
...
technological
...
Political
...
Table 5. STEP analysis of factors affecting the laundry market
According to the results of the performed STEP-analysis, macro-environmental factors have a greater influence on the laundry service market. Each of the considered groups of factors has an impact on the development of the market.
Such economic factors … have a negative impact on the development of the laundry services market. Complicating the development of the market is the lack of…
Demographic factors: ...
1.7. Analysis of sectoral indicators of financial and economic activity
Important data for analyzing the state of the industry is the dynamics of such indicators as profitability, liquidity, and business activity.
The table shows the dynamics of the gross profit margin (the ratio of gross profit to income).
During the period under review from 2015 to 2019, the dynamics of the gross margin indicator in the laundry service industry had … character - in 2016, the profitability of …, and then showed … dynamics. Gross margin fluctuated from …% to …%.
When compared with the indicator for all sectors of the Indian economy, the deviations in the profitability of laundry services were ...
Consider the dynamics of profitability before tax.
Diagram 12. Profitability before tax (profit of the reporting period) in the laundry industry in comparison with all sectors of the Indian economy, 2015-2019, %
In general, for the period, profitability before tax in the laundry services industry … from …% to …%. In 2015-2019, the work of the laundry industry can hardly be called …, since this is a significant … indicator for all sectors of the Indian economy, especially in 2019 - …%.
Consider liquidity ratios in the laundry service industry. The indicator of current liquidity is a measure of the solvency of the organization, the ability to repay the current (up to a year) obligations of the organization.
The estimated indicator of the current liquidity of a normally operating solvent legal entity must be at least 1, i.e. it is necessary that the total value of current assets be greater than the amount of short-term liabilities.
...
At the same time, in world practice, the optimal coefficient is considered to be in the range from …
For the industry under consideration, during the period from 2015 to 2019, the dynamics of the total coverage indicator ... The nature of the change in this value ... In 2017 and 2018, there was ... current liquidity compared to the previous year, the minimum value was reached in ... year and amounted to ... The annual value of current liquidity …
A more stringent liquidity criterion is the absolute liquidity ratio. It shows what part of short-term liabilities can be repaid immediately, if necessary, at the expense of available cash and marketable securities.
The normal value of the absolute liquidity ratio ranges from ...
Table 7 shows the dynamics of this coefficient.
During the period under review, the overall indicator for all sectors of the Indian economy is …, which indicates ... In the laundry service industry, this indicator is …, the minimum was observed in … year – …. During the period under review, the level of absolute liquidity ...
Business activity is the ability of an enterprise, based on the results of its economic activity, to take a stable position in a competitive market, this is the effectiveness ...
Consider the dynamics of the average turnover of receivables in the laundry industry in India.
The dynamics of the average turnover period of receivables in the period from 2015 to 2019 had … character, the maximum was observed in … year – … days. days Compared to the pre-crisis period (2014), the indicator … in 2016 …
The stability of the financial position of the enterprise is impossible without effective management of working capital, based on the identification of significant factors and measures to provide the enterprise with its own working capital.
The equity ratio characterizes ...
The final working capital ratio for all sectors of the economy in India in 2015-2019 shows a trend towards … Despite the fact that the laundry services industry showed …% over the period, the indicator … is a standard value of 10% and values for all …
Thus, the following indicators for the laundry service industry are in compliance with the regulations: ... Not in compliance with the regulations ...
Part 2: Competitive Analysis in the Laundry Market in India
2.1. Major players in the market
The market in India is characterized by ... a level of concentration (a large number of ..., the Herfindahl-Hirschman index is HHI = ..., HHI ... - ...th market).
The largest operators in the laundry market include: …
2.2. Market shares of the largest competitors
Diagram 16. Shares of the largest competitors in the laundry market in India in 2019, %
Conducting a competitive analysis in the laundry market is complicated by the fact that most often laundry services are provided by companies primarily engaged in …
Thus, according to GidMarket, the leader of the laundry services market in India is …, occupying …% in 2019, in second place is …, occupying a share of …%. …
Other market operators account for …% of the laundry market in India.
2.3. Profiles of major players
Net …
...
Table 9. Basic information about participant No. 1 of the laundry market
According to GidMarket, the total revenue of the TOP-5 largest laundry service operators in India in 2019 amounted to … billion Rs. For the period 2015-2019, the revenue of the five largest market operators …%.
The revenue growth rates of the largest operators are comparable to …
Part 3. Laundry Consumption Analysis
3.1. Estimated per capita laundry consumption
The per capita consumption of laundry services in India was estimated by GidMarket on the basis of the ratio of …
As you can see in the chart, the consumption of laundry services in India … during 2015-2019. For the period from 2015 to 2019, the cost of laundry services per capita … by … Rs., while the growth was not due to …, but due to the dynamics of ...
3.2. Market Saturation and Estimated Market Potential in India
Thus, based on average prices for laundry services and when recalculated, for example, by the average weight of a set of bed linen (2 kg), we can conclude that at least once a year ... a resident of India uses laundry services, which indicates ...
The market potential for laundry services is estimated by GidMarket specialists to be no less than “plus …%” to the existing market volume, or more than … billion Rs. in 2019 prices. Achieving the potential of the market and its qualitative development is constrained ...
An increase in the level of reaching the potential market capacity is possible due to an increase in …
Currently, laundries are trying to attract more consumers and increase the average check by introducing services ...
3.3. Description of consumer preferences
Consumer preferences are analyzed by GidMarket on the example of self-service laundries.
As shown in the diagram, the criterion ... is paramount (... points). Consumers need to…
The second place in importance was divided by 2 criteria (each received ... points): ...
The third most important factor is ... (... scores), which ...
...
Less important criteria for choosing a self-service laundry include…
Diagram 19. The importance of criteria for choosing self-service laundry by consumers, points
3.4. Price analysis
Consider the dynamics of prices in the laundry market:
The consumer price index for laundry services annually …%, the highest CPI indicators were observed in … years - market companies .. If we compare the CPI for laundry services with the CPI for all services in India, then the first indicator, with the exception of … years … is the second, according to the results of 2019 the difference between the CPI for laundry services and the CPI for all services amounted to … percentage points.
According to Rosstat, the highest prices for laundry services are observed during the entire period under review in … Union Territories: in 2015, the price was … Rs./kg, which is …% higher than the average Indian indicator, and in 2019 – … Rs./kg, which is …% more expensive than the Indian average. In all other counties, laundry prices ...
According to data for 2 months of 2020, the price ...
Part 4. Assessment of factors of investment attractiveness of the market
...
… factors of the investment climate of the laundry market dominate over... A comprehensive assessment of the factors of investment attractiveness amounts to … points – … the investment climate. This means that within the industry under consideration, the volume of …
The most significant positive factors. …
The most significant negative factors. …
Part 5. Forecast for the development of the laundry market until 2024
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. Number of household facilities providing laundry services in India in 2010, 2015-2018, units
Diagram 2. The share of laundry services in the structure of paid household services to the population, %
Diagram 3. Dynamics of the volume of the laundry services market in India, 2015-2019, billion Rs.
Diagram 4. Structure of the laundry market by types (according to the norms of time for processing 1 kg of linen),%
Diagram 5. Laundry service provision structure in India by Union Territories, 2015-2019, %
Diagram 6. Dynamics of India's GDP, in 2014-2019, billion Rs., % to the previous year
Chart 7. Monthly dynamics of the US dollar against the rupee, 2015-2019, Rs. for 1 US dollar
Diagram 8. Index of physical volume of turnover of retail trade in non-food products in India, 2014-2019, % to the previous year
Diagram 9. Population dynamics in India, 2010-2019, million people, %
Diagram 10. Dynamics of real incomes of the population of India, 2011 - 2019, % to the previous year
Diagram 11. Dynamics of the average interest rate on loans, 2014-2019 (Jan-Nov), years, %
Diagram 12. Profitability before tax (profit of the reporting period) in the laundry industry in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 13. Current liquidity (total coverage) in the laundry sector for 2015-2019, times
Diagram 14. Business activity (average turnover period of receivables) in the field of laundries, for 2015-2019, days days
Diagram 15. Financial stability (security of own working capital) in the laundry industry, in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 16. Shares of the largest competitors in the laundry market in India in 2019, %
Diagram 17. Dynamics of the total revenue of the largest laundry market operators (TOP-5) in India, 2015-2019, million Rs.
Chart 18. Consumption of laundry services per capita, 2015-2019, Rs./person
Diagram 19. The importance of criteria for choosing self-service laundry by consumers, points
Diagram 20. Forecast of the laundry market size in 2020-2024, billion Rs.
Tables
Table 1. Average producer prices for electricity in India at the end of the period in 2017-2019, rupees per unit of measurement, CPI for electricity supply services, %
Table 2. CPI for water supply and sanitation services in 2015-2019, %
Table 3. Urban and rural population in India in 2014-2019, million people, %
Table 4. Weighted average interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2014-2019 (Jan-Nov)
Table 5. STEP analysis of factors affecting the laundry market
Table 6. Laundry Industry Gross Margin vs. All Industries in India, 2015-2019, %
Table 7. Absolute liquidity in laundry compared to all sectors of the Indian economy, 2015-2019, times
Table 8. Main companies participating in the laundry market in 2019
Table 9. Basic information about participant No. 1 of the laundry market
Table 10. Basic information about participant No. 2 of the laundry market
Table 11. Basic information about participant No. 3 of the laundry market
Table 12. Basic information about participant No. 4 of the laundry market
Table 13. Basic information about participant No. 5 of the laundry market
Table 14. Consumer price indices in the laundry market for India in 2015-2020 (Jan.-Feb.), %
Table 15. Average prices in the laundry market (washing and ironing straight linen) across the Union Territories in 2015-2020 (Jan.-Feb.), Rs./kg
Table 16. Evaluation of factors of investment attractiveness of the laundry market
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