The laundromat market - Italy

1.2 The global market

A laundromat is a facility where people can wash and dry their clothes through the use of coin-operated and generally self-service washers and dryers. Laundromats can be places where you can wash your own laundry, however, they can also be part of a larger enterprise that also offers dry cleaning services.

Recent years have seen an increase in the use of laundromats by hotels and hospitals to clean the various clothes and materials used during operations. This trend is accelerating the growth of the overall market for the industry, which is also influenced by the increase in the working population that has fueled the demand for laundromats. It tends to be believed that the experience of doing laundry at a laundromat can offer significant conveniences, provided by **-hour service and the ability to receive home delivery and pickup service.

The global laundromat market size reached a value of about $**.** billion in ****, and the market is expected to reach $**.* billion by ****, with a CAGR of *.** percent.

Value of the global laundromat market World, **** - ****, US$ billion Expert Market Research

The self-service laundromat industry is in a period of rapid expansion due to a growing demand from consumers, many of whom, not having ...

1.3 The Italian market

A weighted estimate is proposed to find out the turnover trend of the local laundry market, carried out through the analysis of the last available years (***) and data at the global level. Specifically, the industry is projected to grow over the period under analysis; from **** to **** the overall percentage change is projected to be **.* percent, theorizing an annual growth rate of *.* percent. Turnover of the self-service laundry market Italy, ****-****, in million euros and % Source: Detergo The growth of this market is largely driven by the presence of industrial laundries, to isolate the trend of other laundries, a further estimate was made based on Istat data on the average monthly expenditure of Italian households on laundry services. In this case we observe a more uncertain trend, with a decrease from **** to **** of **%. Market value of non-industrial laundries Italy, ****-****, thousands of € Istat, Businesscoot processing Instead, to isolate the laundromat market, an estimate of total turnover was made based on the number of self-service laundries in Italy (***). From this, the value of the total turnover of the sector in **** is constructed at €***.* million. Description Value Number of self-service laundries in Italy € *,*** Average monthly turnover per self-service laundry € *,*** Total turnover **** € ***.** M The expansion ...

1.4 The Impact of COVID-19

Self-service laundries seem to be among the businesses that have responded quite positively to the economic effects triggered by the pandemic. Nevertheless, these establishments have had to rethink and relaunch themselves, not only because of Covid-**. Manufacturers before the pandemic were gearing up to offer new products, such as ozone sanitization booths or washing machines that automatically perform routine sanitization between cycles. These can only be considered, especially at this time, a guarantee of cleanliness and hygiene for consumers.

The pandemic has reduced demand in the self-service sector, due to the impediment of being able to move or circulate. However, for some manufacturers of self-service laundries, the opposite situation occurred; For Grandimpianti, the pandemic was a useful time to take full advantage of the potential of IoT (***) technology, which has been present in their machines since ****. Thanks to the Wavy control system, connected to The Mind Cloud service, it is possible to remotely monitor and manage one or more machines but also multiple laundries. The system's bidirectional data communication makes it possible to control the operation of the equipment and, most importantly, to transmit programs, cycles, updates, and set-ups to the equipment without any restrictions. This feature has enabled, even in ...

1.5 The Italian gold kilowatt

In ****, Algeria became Italy's main gas supplier, which guarantees a cheaper commodity than other partners. The need to contain the cost of energy supply is one of the energy policy issues that have been placed at the center by Confartigianato President Marco Granelli, who believes that urgent reforms must be adopted, as the energy crisis manifests heavy necessity effects on the Italian micro and small business system.

During ****, the cost of electricity for small businesses increased by ** billion euros compared to the previous year, while the cost of gas increased by *.* billion euros; it can be inferred, therefore, that the high bills for small business owners is around **.* billion euros, with an increase that weighs *.* percent of the added value created by businesses with up to ** employees. This uneven escalation of energy costs, widens the competitiveness gap of Italian businesses; moreover, it emerges that in the third quarter of **** the price of electricity paid by an Italian small business is the highest high among EU countries, being **.* percent higher than the European average, ** percent higher than a Spanish enterprise, and ***.* percent higher than that paid by a French small business; German prices are not surveyed and consequently a comparison cannot be ...

2.1 Laundry in Italy and target populations

Italians' relationship with household appliances, as well as with the use of self-service laundries, is strongly influenced by several factors, including: changes in lifestyle, energy savings, and the convenience offered by self-service laundries.

The use of self-service laundries has seen a decisive surge in recent years, going to reflect a behavioral shift in consumer choices. The market is maturing, and these laundries are now seen as a means of access to quality services and specialization, rather than simply a source of additional income (***). The trend is to offer a multiservice model that goes to enhance the customer experience, going to emulate systems found in other countries around the globe, where users can enjoy a comfortable environment while waiting for their laundry.[***] The monthly household expenditure item for laundry service is shown below; it can be seen that compared to the first year taken into analysis (***), certainly influenced by the occurrence of several situations, namely the pandemic and restrictions imposed by the desire to contain the effects of the virus.

Monthly household expenditure item - clothes laundry service Italy, **** - ****, in current &euro Istat

Many of the customers who rely on this type of service are without household appliances to clean the ...

2.2 Evolution of monthly interest in self-service laundries (Google search)

The graph placed below represents the proportion of searches for a given keyword in a specific region and in a specific time period, compared to when the usage rate for that keyword was highest (***). Thus, a value of ** means that the keyword was used less often in the region concerned, and a value of * means that there is insufficient data for that keyword. Through these data, we observe the evolution of the number of searches made for the term "self-service laundry" in the past ** months, comparing **** to ****.

Average monthly search evolution "self-service laundry" Italy, ****-****, Google Trends index Google Trends The search registers higher values in August ****, touching an average of **.**; if we compare the value registered in October **** with that of October ****, we can see a slight decrease in web searches for this keyword, by about **.**%. In any case, the searches do not appear to be influenced by seasonal factors, going to support the thesis that these services are essential in everyday life and can be slightly affected by external situations.

2.3 Geographical distribution of demand

In Italy, monthly household spending on laundry services varies widely depending on household size and consumption habits. Costs vary depending on the region being analyzed and the availability of coin-operated or self-service laundry services nearby. Households living in urban areas may have more options than those in rural areas. As seen in the graph below, the highest expenditure is in northern Italian regions(***).

3.1 Market structure and employees

It is complex to know the exact number of self-service laundries in Italy in ****. However, it is possible to draw a fairly general picture by going to analyze the openings made by some big names in the industry. As of December **, ****, the company NordestWash had opened *,*** self-service laundry outlets in Italy.[***]

In any case, trying to analyze the years prior to ****, the data provided by Istat to assess the trend of the activity of selfservice laundries is reported. It should be pointed out that the data available for the specific segment of self-service laundries are only those for **** (***). From **** to ****, data belonging to "Other laundries, dry cleaners" are reported; for this reason, the huge gap in the number of active businesses is noticeable. In any case, it is interesting to note that the number of active self-service laundries in **** is *,***. As for the previous years, there was a growth of *.**% from **** to ****, and then a decline from **** to ****, amounting to a percentage value of - *.*%.

Active enterprises in the self-service laundry business sector Italy, ****, number of units Istat Analyzing the legal form of active enterprises, there is a clear predominance of the number of Individual Entrepreneurs, freelancers and self-employed(***). Legal form ...

3.2 Value Chain

The value chain in the laundromat market includes several stages:

Suppliers: this stage involves the suppliers of equipment, detergents, and services needed to operate the laundry. Washing operations: central stage, where customers use the coin-operated washing machines and dryers. Efficiency of the machines and cleanliness of the facilities are necessary. Maintenanceand technical support: maintenance is crucial to avoid disruptions, which is why laundries require constant maintenance to ensure continuity of service. Marketing: marketing activities are essential to attract the most customers; this also includes local advertising, promotions, and loyalty programs. Customer relations: the real goal of laundries is to establish the best relationship with customers. Solving problems, answering questions, and maintaining positive interaction can result in loyal customers.

3.3 Open a laundromat in Italy

Coin-operated self-service laundries can remain open all day without restriction, even on holidays and without the need for individuals to run the business on the premises. In fact, it will be enough for the laundry operators to simply go and collect the daily takings and provide maintenance and supervision of the machinery, as well as cleaning the premises, while otherwise the activities tend to be managed from home, through the use of CCTV cameras and computerized systems that allow constant remote control.

The advantages of the self-service laundry business are many:

Good profitability; Flexible working hours; Little need for employees; No stockpiling; Low costs; Cash payment; No working capital requirement; Average machine life is between ** and ** years.

Laundromats and self-service laundries are considered a highly successful investment, as this business involves a relatively modest initial investment, compared to opening a classic laundry, fixed and variable costs are reasonable, there are low personnel costs, and the return on investment is quite rapid.[***]

The different steps to open a laundry

*. Administrative area:

come up with a name and write a draft of bylaws; opening a professional bank account; open a VAT number at the Internal Revenue Service; register with the Chamber of ...

3.5 Main actors

Established as functional and service places, laundromats are also evolving and transforming into places for meeting and pleasant waiting. Thanks to high technologies, respect for the amnient and attention to consumer spending, more and more customers are approaching this type of shopping; the following is an overview of the main players, dwelling on the "innovative" actions they offer in their planning.

The Renzacci Group has innovated its self-service, equipping the consumer with machines strongly characterized by a strong interactivity with the customer: machines equipped with facilities such as the possibility of making personalized discounts, incentives for customers on certain days of the week, and much more. The owner of the laundry has the opportunity to have more information about profitability in real time, being able to interact with the machines even remotely, thus without the need for his presence on site. All of this is possible thanks to the use of the Intellectus System, which makes it possible to take advantage of the incentives of Industry *.* Digital Connection; another key element is the RZ Renzacci series closed-loop dryer with total airflow recovery, which makes it possible to do without expensive fume hoods. Other services offered by the company are: the IGenius ...

4.1 Average price example

In most cases, different types of washing machines and dryers are available to consumers, with capacities ranging from * to ** kg. Thus, the prices of a laundromat vary depending on the capacity of the washing machines.

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4.2 Available equipment

Traditional laundries, self-service laundries, and coin-operated laundries require different types of machinery to provide services to consumers.

Washing machines: sturdy, efficient, quick to maintain. Washing machines can vary depending on the size of the drum, can be single spin and super spin. Single spin washing machines are preferable for economic reasons and to avoid tearing, especially on comforters, but will offer slower service. Super-centrifuge washing machines offer faster services, which saves time in the spinning phase. Dry Cleaning Machines: extremely easy-to-use machines with a deep and thorough cleaning action, gentle treatment to leave the natural softness of fabrics and their colors intact. Ironing line: includes suction and blowing ironing benches, with or without boiler, automatic dummies, tensioned dummies, shirt presses, presses, stain removers, electric steam generators, drying tunnels and all the equipment needed for laundries, ironing shops, as well as knitters and garment makers. Dryers: these can be electric and gas-powered. Gas dryers are more convenient to use and provide better drying quality; however, they require a fairly large drain, which is sometimes complex to make. Centralized checkouts (***): a laundry may have centralized checkouts or league-recognition coin machines, which through the use of prepaid cards can easily lead to customer loyalty ...

4.3 Self-service laundries: costs and earnings

Earnings

The earnings of a self-service laundry depend basically on two factors: customer flow and the value of the average expenditure per customer.

Customer flow

The customer flow of a self-service laundry is strongly influenced by its location area; the most recommended areas are residential, served by transportation, and close to other businesses. Depending on the area, however, on average there are between ** and ** daily accesses.

Average expenditure per customer

The average expenditure per customer varies depending on the load of laundry to be washed and any extra charges. For a minimum load, the expense is around €*, including washing and drying of the clothes; for larger loads, as much as €** can be spent. On average, then, the expense per customer is *.**€.

This amount is multiplied by the number of laundry customers, allowing us to know the value of the average revenue; this is about ***€ per day, equivalent to *,***€ per month.

Costs

To get an overview of the earnings of a self-service laundry, it is necessary to consider the cost of opening a laundry; there are two types of costs: fixed and variable.

Fixed costs

Fixed costs include: rent, insurance, daily cleaning, maintenance of the premises, and any investment in advertising campaigns ...

5.1 Regulations

Legislative Decree No. ** Art. ** c. * bis of March **, **** defines self-service laundries as all those public establishments in which professional water-based washing machines and dryers are used directly by customers, after they have purchased the appropriate tokens or coins needed for the service.

The business of coin-operated laundries, known as self-service laundries, is to provide customers with professional water-based washing machines and dryers in special areas, which operate through the purchase of special tokens, to wash clothing, garments and clothing accessories, etc.

The activity of self-service laundries is regulated by a number of regulatory texts:

Circular No. **** of September **, ****: outlines which activities can and cannot be performed in a business that defines itself as a self-service laundry; for example, dry cleaning, ironing or stain removal are not allowed in self-service laundries and must mandatorily be performed in dry cleaners; Law No. ** of February **, **** : defines who and how the economic activity of a self-service laundry can be carried out; Article ** - bis of Regional Law No. ** of December **, **** : outlines regulations for employees and business owners working in self-service laundries.

5.2 Women's enterprise fund to open a self-service laundry

In Italy, there is a bonus for being able to start a laundry business with up to ** percent non-repayable subsidy through the Women's Enterprise Fund grant .

Beneficiaries and implementation methods

Eligible for the facilities under this chapter are women's enterprises with legal and/or operational headquarters located throughout the territory, consisting of less than twelve months from the date of submission of application for the facility. By women's enterprises, reference is made to:

Sole proprietorships with women owners; Partnerships (***) in which women represent at least ** percent of the corporate structure; Corporations whose shareholdings are held by no less than */* by women and whose governing bodies consist of at least */* women.

To implement the promotion and support objectives established by the law, the interventions of the Women's Enterprise Fund are divided into the following lines of action:

incentives for the establishment and development of women's enterprises (***) incentives for the development and consolidation of women's enterprises (***) actions for the dissemination of women's entrepreneurial culture and training (***).

The budget provided for inArticle *, paragraph **, of the law is allocated as follows:

an amount of €***,*** is earmarked for actions for the start-up of new businesses under Chapter II. Within the aforementioned allocation, a reserve equal to ...

6.1 Segmentation

• Miele Deutschland
• Necchi Italia
• Italsec
• Bucato Express Bio Lavanderie
• Lavanderia Nordest - Brentareno
• Girbau
• Lavanderia Alliance
• Whirlpool Italia