Nowadays, there is a growing concern for the self-service laundry industry in Thailand. lavanderías have rapidly evolved from insignificant stores by the roadside to indispensable facilities in community life. In big cities such as Bangkok, due to the compact flats and increasing rents, the demand for effective space utilization and shared laundry service has increased significantly. Self-service laundry industry is gradually shifting from mechanical washing to smart connectivity model.
Growth Prospect
Apartments in Thailand have limited indoor space. Many families have no space to install washers. Meanwhile, 24-hour laundromats can meet the late-night laundry demands of office workers, which is efficient and time-saving. Industry report states that Thais heavily rely on self-service washing and drying services in city life. They save time through outsourcing laundry services. These consumption habits drive long-term growth in the laundry industry.
What’s more, it’s predicted that the market CAGR will exceed 15% in the next five years. Smart transformation is continuing to promote market expansion. A laundromat is not only a place for laundry, but is becoming a smart service hub combined with payment solutions, online management, and franchise operation.
Pain Points
Over a long period of time, coin-operated washers were the mainstream choices in the industry. But they significantly caused customers’ troubles. For example, if a guest didn’t take away the wet clothes in time, the next customers must wait and cannot use the washers. Meanwhile, it is not very convenient for customers to pay in cash. They should prepare for the change ahead of time in case there’s no change available.
During peak hours, machine shortages often occur in traditional laundromats, especially when the nearby tenants and tourists gather together to do the laundry. Therefore, machines may appear available, but are actually occupied. For those convenience-oriented people, traditional laundries cannot meet their expectations.
Smart Transformation
With the popularity of IoT technology and mobile payment, Thailand’s self-service laundry industry is undergoing a large-scale upgrade. At present, many smart laundries connect online programs with physical stores. Customers can check machine availability on their phones in real time. They can directly select available machines and pay for them. Upon arriving at the store, they can do the laundry instantly without waiting. QR code payment system supports various payment methods, including PromptPay, credit card, and e-wallet, avoiding the embarrassment of having insufficient change for washing.
This transformation not only improves store turnover rate, but also lowers the barrier to use for customers. According to industry watchers, smart payment solution and real-time machine availability display significantly enhance washing efficiency. Laundry load saturation during peak hours is more balanced. Today, famous laundromat chain brands in Thailand, including 24 Wash, Fongfab, and Sanook Laundromat, have adopted these smart systems.
Store Profits
If a laundromat is equipped with four commercial washers and four commercial dryers, the washing fee is about 40 THB per cycle per machine (small cold-water washing). The drying fee is also about 40 THB. So, the total fee is about 80 THB per customer per use. Actually, the charge for some washers with hot-water functions is slightly higher (50-60 THB).
On average, each washer is used 5-6 times per day. Based on 5 cycles per day:
Daily income per washer: 5 (cycles) × 40 THB = 200 THB
Daily income for four washers: 800 THB
The additional drying income will increase the total income.
Monthly income (only washers): 800 THB × 30 (days) = 24,000 THB
In terms of electricity costs, Thailand’s commercial electricity fee is about 3.84-4.08 THB per kWh. A washer consumes around 0.3–0.5 kWh per cycle. Its electricity cost is about 1.2–2 THB. Dryers consume significantly more electricity.
In terms of water costs, commercial and industrial water fees are about 20–24 THB per cubic meter. A washer uses around 0.1–0.15 cubic meters of water. Its water cost is about 2–3.6 THB per cycle.
In this mode, the gross margin is relatively attractive.
The Key to Payback
There are three key elements determining the payback period: location, utilization rate, and pricing strategy.
The business opportunity of a laundromat depends on its supply density and the strength of nearby residents’ demands. Laundromats near the apartment area, university campus, and tourist spot are more likely to achieve high machine utilization rates.
Besides single washing and drying services, some laundromats start to install vending machines and paid folding tables, and hold children’s entertainment activities. These value-added services significantly increase per-customer spending. In the future, multi-functional and comprehensive laundry service points will shape the future development of laundromats.
In the choice of equipment, laundromats should select those with low additional costs. Kingstar self-service washers support multiple payment methods, including coin, QR code, credit card, and a central payment center, which can efficiently reduce the operational costs. A stacked washer and dryer can help save floor space and site investment, especially in high-rental areas. During the washing and drying process, high-efficiency machines can lower utilization costs and further increase store profits. Therefore, selecting the right equipment is the key to a successful investment.
Conclusion
For investors who seek stable long-term returns and hope to maintain a stable long-term cash flow, selecting a rational location, controlling initial costs, and clarifying operational mode may be more important than only pursuing technological innovation. Kingstar recommends conducting on-site investigations on several smart laundromats to experience their digital systems and customer flow before making investment decisions.
Q&A
Q1: Is it suitable to invest in laundromats in Thailand?
A1: The laundromat industry is growing rapidly in Thailand. But traditional coin-operated equipment cannot meet customers’ new requirements. In terms of choice, laundromats should select smarter and low-cost machines, and use more precise operational strategies.
Q2: What languages does a Kingstar self-service washer support?
A2: It supports multiple languages, including Chinese, English, French, Thai, Spanish, and Portuguese.
Q3: Is it possible to be an agent for Kingstar self-service washers?
A3: Yes. Kingstar looks forward to cooperating with you.
