How to Start Laundry Service Business In India ?

Laundry Made Easy: From Pickup to Fresh Fold

From the times our moms entered into a hassle or bargain with the dhobi for getting a cloth or two less, ripping her off with high prices, deciding to change the dhobi bhaiya, yet get in to the same viscous cycle the next time he gets stains on this clothes, We Indians have come a long way with 3 million of our households requiring professional laundry services and trusting them with our clothes.

India, today has around a 100 startups dealing in providing top-notch laundry services to the households, taking the advantage of all the problems laundry slams the working class and our maids with and making business worth $ 76 billion out of it. Yes, a business out of people’s dirty linens! But the linens they cannot do without and now neither can you!

Market potential

It is now that the potential of laundry services in India is seeing some light. Because pulling 5 years back laundry was considered to be a private chore practised by the maids, housewives and Dhobis because of less working class population, Lower disposable income, and lesser economic opportunities.

Now India’s demographics have seen to be changing where they aren’t profiled on gender while targeting a product as much but instead focus on the disposable income their household makes in total and the time they’d spend on the use of the product or service. An opportunity laundry service took advantage of.

Uses

The households would make use of the laundry service you provide in the following ways:

  • To get rid of the stains, odours and dirt off the clothes.

  • To get the clothes ironed mostly: offices wear, occasional outfits etc.

  • To get rid of the loose threads, wrinkles and fading colour issues of your clothes.

  • To ensure proper and crisp folding of your clothes so that they’re ready-to-wear.

  • To get the clothes washed on a routine basis and also to ensure the clothes don’t get under  each other’s colours for making those laundry spaz’s work easier.

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Target consumers

You can enter into the laundry service depending on the nature of business you want to get into, so you could either set up a

  • Laundry franchise business.
  • Home pick up and home delivery services.
  • Coin laundry store.

Irrespective of the nature of the business you aim to establish, the target customers for your laundry service would be:

Working class : Involves all the men and women’s formal and casual clothes, with lack of time on their hands and increased disposable income, which needs a laundry service eg: aprons, coats, blazers, occasional outfits, dresses etc.

Old people : Old people who physically need help with their clothes because of their inability to wash off their clothes : whites, trousers, dresses etc residing in their own houses or old age homes etc.

Healthcare spaces : Healthcare calls for uniform dresses for nurses, patients and doctors which require a thorough cleaning, free from all the possible infections, viruses, bacteria etc use laundry services for professional cleaning.

Kids : Kids living off their own might require laundry services for their routine and casual clothes  because of it’s affordability and inability to do it eg: uniforms, shirts, T-shirt’s etc.

Books you Must Read

Drycleaning & Laundry Service Lines World Summary
How To Start A Successful Laundry Services Business

Licenses required

The licenses required to run a laundry service in India :

  • Health department licence
  • SSI registration
  • GST registration
  • PAN Card and Aadhar card.

Investment required

CONTENTAMOUNT
Licensing fee₹1 lakh
Rent per month₹5 lakh-20 lakh
Equipment₹1 lakh
Supplies₹50,000
Card reader system₹1 lakh
 Utilities₹1 lakh
Staff₹1 lakh
 Insurance cover₹1 lakh
Marketing₹2 lakh
Uniform for employees₹50,000

Profits made

The profits made from this laundry service business in India is around ₹5-6 lakhs per annum.

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Business model

Since, it’s a delivery bases laundry service you can start off by developing an app for the customers to reserve slots and track the delivery of their clothes.

Also specifying the services you provide :

  • Washing , drying and ironing.
  • Dry cleaning and folding.
  • Laundry for spa.
  • Tailoring, cutting off loose threads, trimming etc.
  • Laundry delivery.

Value proposition: The unique selling point (USP) and the value proposition the laundry service business is likely to provide you with is :

  • The additional services that comes with your laundry service which is not offered by the traditional dhobighats.
  • Consistent Routine demand for your service and increased  demand during occasions and festive seasons.

Target consumers & Competitor review

The target consumers for the laundry services you provide with is as follows and With around 100 startups and a large unorganised sector of laundry services the competitors to your business would be.

  • Working class
  • Old people
  • Healthcare and hospital spaces
  • Kids
  • The laundry basket
  • Wassup laundry
  • PickyMyLaundry
  • Uclean

Marketing strategy: The marketing strategy that your laundry service must adapt are as follows:

Advertising: In terms of Tv commercial, social media, highlighting the user friendliness of your app and the unique services you provide.

Sales promotion: In terms of loyalty pints, discounts, vouchers etc to the consumers.

Paid-advertising: Advertising on the platforms like google and YouTube through paid and pop up ads.

Digital and print media: Using print media like news papers with your logo and highlighting your services and on billboards etc.

Growth

The laundry services has the potential and has witnessed the growth prospects in the following ways:

  • The laundry market is expected to grow at a CAGR of 4.9annually ( 2020-2023).

  • In India, both the organised (apps and delivery laundry services) and unorganised sector ( dhobighats) in total are valued at ₹5000 crore.

Area required

The area required to set up a laundry service business would be 600-700 sq ft.

Raw materials ,Machinery required & Manpower

  • Gloves
  • Cleaning chemicals
  • Soaps and detergents
  • Laundry carts
  • Uniforms
  • Washers
  • Dyers
  • Card system
  • Detergent vending machine
  • Coin machine
  • Steamers
  • Steam boilers
  • Ironing machines
  • 5-Washers
  • 10-Delivery men
  • 1-accountant

Profit margin

A laundry service business provides you with a profit margin of 40%.

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Suggestions

While you search for a change to give to your laundry delivery man, we have some fact-Checkers for you:

  • The increased and increasing working class of India and its immense labour intensive market brings in more demand for the laundry services in India.

  • The exceptional services of ironing, dry cleaning and tailoring which are not offered by the traditional dhobi ghats has makes your service a one stop shop for everything, at  an affordable price reaching every niche and accessible to every consumer market.

  • A laundry service stratum comes at a minimal capital and manpower at suffice profits.

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