In Europe, the United States, Japan, and other areas, 24/7 laundromats are common convenience service models in the city. With unattended operation, laundromats provide large-capacity commercial washers and dryers and efficient services. They have become a major choice of backpackers and residents for handling bulky garments and large-load laundry care.
Kingstar has specialized in commercial and industrial laundry equipment for many years. It has closely followed the development trends of the global self-service laundry market. This article will analyze the unique challenges and potential opportunities in China’s self-service laundry market from an equipment provider’s perspective.
Root Causes
The self-service laundry business mainly succeeds in two markets: markets with extremely low or high labor costs. China is in the awkward position between the two.
- The labor cost dilemma
In some developing cities in Southeast Asia and China, home services are affordable. Consumers can easily outsource bulky household chores, such as cleaning curtains and duvet covers. In these markets, the value of self-service laundry is to upgrade equipment. 15-20 kg commercial washers can handle large items that cannot be processed by household washers (8-10 kg).
In Europe, the United States, Japan, and other areas, labor costs are high. The cost of one-time door-to-door curtain cleaning may reach hundreds or even thousands of yuan. Therefore, laundromats become a cost-saving necessity. Consumers only spend a few dollars on washing and drying their laundry themselves.
However, most people in China think that having someone do the cleaning seems expensive. Doing the laundry themselves feels too tiring. Going to laundromats seems not to save much time. So self-service laundry struggles to develop stable consumer habits due to this consumer mindset.
- Widespread household equipment & air-drying tradition
In China’s urban families, the household washer penetration rate reaches nearly 100%. As living standards improve, large-capacity front-load washers have become standard choices. So most families can handle daily laundry without external machines.
There is a deep-rooted air-drying tradition in China. Many consumers think that dryers may damage fabrics and cause wrinkles. They prefer to spend more time on air drying. But the core competitiveness of laundromats is efficient drying. The whole process from washing to drying requires 30 minutes. If this is not recognized, the business model will become harder to sustain.
- High rental costs
Over the past 20 years, the rapid growth in China’s real estate has driven up rental costs of all physical businesses. Laundromats require large areas, low average spending per customer, and high turnover rates. Several large machines occupy a space of several tens of square meters. Each consumer only spends a few yuan to tens of yuan. So laundromats only have low margins.
In first-tier cities, laundromats have to pay monthly rents, which reach tens of thousands of yuan. Businesses built on a few coins cannot cover the rents. The economics simply do not work. By contrast, laundromats in Europe, the United States, and Japan are almost located at the corners or old buildings with reasonable rents. Their cost pressure is much lower than that in China.
- Competitive pressure from O2O platforms
China’s unique Internet business has given rise to door-to-door laundry service platforms, such as Fengchao Laundry and Ebag Laundry. These platforms provide one-stop services: doorstep pickup, professional laundry processing, high-temperature finishing, and delivery. For example, cleaning a set of curtains requires about 100 to 200 yuan.
For Chinese consumers, the price is completely acceptable. Laundromats provide washing and drying services. But they cannot handle removing, rehanging, ironing, and finishing. O2O platforms fill this gap, developing direct competition with the self-service laundry model.
Inspiration for Hotel Self-service Laundry Rooms
Although facing many challenges, a noticeable trend is emerging: hotel self-service laundry rooms.
Some mid-scale hotel chains (such as Ji Hotel and Atour Hotel) have started installing self-service laundry rooms on guest floors. Rooms are equipped with washers and dryers. They are available free of charge or for a small fee. Business travelers, long-stay guests, and family tourists do not have their own equipment. But they are unwilling to pay expensive in-room laundry service fees. It is also not convenient for them to find external laundry shops.
This reflects a potential development trend of self-service laundry in China. It should not be limited to the streets and communities. It can be applied to temporary accommodation scenarios: hotels, long-term rental apartments, university dormitories, and hostels. Consumers in these scenarios have no household equipment. They are also unwilling to and cannot use door-to-door services.
Kingstar Equipment Advantages
Kingstar is a professional commercial laundry equipment manufacturer. It has a deep understanding of the laundromats’ core requirements for equipment: durability, high efficiency, low energy consumption, and easy maintenance.
Kingstar commercial washer-extractors use heavy-duty stainless steel inner drums and high-quality bearings. They can operate continuously for more than 20 hours every day. The smart control system supports multiple wash programs. It can meet different fabric requirements. The energy-saving design reduces operating costs to help laundromat owners improve profitability. More importantly, Kingstar provides end-to-end services, from equipment selection and site planning to after-sales maintenance. It is committed to helping global customers establish sustainable business models.
Future Outlook
Kingstar believes that the self-service laundry market is not declining, but is developing slowly. Several positive changes are happening.
- Rising labor costs
Hourly labor costs have doubled within five years. After the subsidies from O2O platforms decline, the actual costs of door-to-door services become visible.
- Developing drying habits
The younger generation tends to use dryers due to southern rainy days and northern smoggy days. Washer-dryer sets have become standard choices in newly renovated homes.
- Stable rents
The real estate market enters an era of existing inventory. Community ground-floor shops and idle spaces start to accept the “low-yield but stable” business.
- Segmented applications
Hotel self-service laundry rooms have proven to be feasible. Multiple scenarios (long-term rental apartments, university towns, and dormitories in industrial zones) are exploring new opportunities.
For investors who plan to develop the self-service laundry market, Kingstar suggests focusing on areas where users cannot use washing machines (hotels, apartments, dormitories, and hostels). They are the initial application scenarios for self-service laundry in China.
Q&A
Q1: Where can Kingstar commercial washers and dryers be used?
A1: They can be used in global laundromats, hotel laundry rooms, apartment laundry rooms, and campus laundry centers. The equipment feature large capacity and low-energy consumption. This meet frequent laundry needs.
Q2: Does Kingstar provide international shipping and installation services?
A2: Yes. Kingstar provides reliable shipping services. So the equipment can be delivered to customers worldwide. Kingstar also offers remote installation guidance as well as technical support. This helps customers operate the equipment.
Q3: What support can Kingstar provide for customers who plan to open laundromats?
A3: Kingstar provides overall services (equipment selection, site planning, ROI analysis, and after-sales maintenance). Based on customers’ budgets and market demands, professional teams can customize solutions.
