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28 December 2018

Do You Run a Laundry Business? 4 Challenges you Shouldn’t Ignore!!

Do You Run a Laundry Business? 4 Challenges you Shouldn’t Ignore!!

The first thing that strikes you about On-demand Laundry Business is that why does it even exist? What’s the need of a laundry services app? Well, we have washermen at dirty cheap rates, ready to churn out clean clothes, whenever and wherever we need them.

No matter how hard we try to negate the fact, we can’t ignore the need of faster services, with ease of access. With the dawn of the working class, we need faster and easier access to each and everything. Well, multiple entrepreneurs, say ex-CEO, Uber, Travis Kalanick or AirBnB co-founder Brian Chesky harnessed the opportunity, and today, AirBnB has raised almost $3.5 billion in 2017 at a $30 billion valuation. Moreover, there are over 3 million AirBnB rentals across the world in 65,000 cities and 191 countries.

What about Uber? Well, ahead of all the turmoil and the leadership changes, the Company operates in around 600 cities and is said to be worth nearly $70 billion. Moreover, in the recent years, quite an evolution has been observed, where people are shedding off conventional consumption-based economy to sharing their cars, homes or even washing machines.

However, when we consider the on-demand laundry business, multiple challenges, affecting the profitability and operations of the business come up.

On-Demand Laundry Store Growth Prospects

According to a report by Forbes, the laundry service market is expected to grow to $76.5 billion, by 2018 in India, alone. Moreover, by the end of 2020, it is expected that over 3 million households will need laundry services on a weekly basis in India. When coupled with smartphone penetration-considering the fact that an average Indian downloads over 32 apps on their mobiles, the expansive growth of the industry is submissible.

According to a Statista report, the revenue from industrial laundry is expected to reach 8.73 billion by 2020, against the current net revenues of 8.40 billion in 2017, observing a YOY growth of over 11%. Moreover, the time poverty of the working class and rising disposable income have led to be the deciding factors prompting the urban Indians to opt for on-demand laundry services.

The Laundry Pile
1. The Laundry Pile

According to an Economic Times Analysis, over 200 dhobis were interviewed where they wished to leave the laundry business and also, didn’t wish their next generation to be involved in the business. Nevertheless, on the demand side, the customers are investing a lot in latest branded apparels, and ask for expert care. Moreover, according to the report, the 500 customers interviewed, almost all of them asked for smart, convenient, and affordable service.

The particular gap, though rising, can be satiated by on-demand laundry business. With a regulated stream of business from regular customers for startups like Cleanly and Wassup Ondemand, it turns easier to hire contract workers and offer incentives greater than the conventional laundry pays off.

2. Lack of Skilled Labor
Lack of Skilled Labour

The issue that underlies multiple on-demand hospitality and service-based businesses is the lack of experienced and skilled laborers. Moreover, the case results in higher costs on the human workforce front. Moreover, automation comes with added costs, and hence, multiple startups starve before incubating beyond the seed funding round.

Moreover, even after high level of automation in the laundry business, dependence on manual work is not eliminated, better say-you still need humans to run those machines. The industry is trying hard to evolve and solve the challenge of empowering and rewarding their workforce with a fair wage.

3. Unable to Scale Up Business
Unable to scale up business

No matter what business an entrepreneur runs, the primary aspiration is always about generating greater revenue, goodwill, market presence or credibility. However, expansion comes with added costs of manual workforce, automation and physical infrastructure. Better say, investment on physical infrastructure and equipments adds up to the costs and resents the growth of a business.

In the laundry business, this problem can be solved through the use of a dedicated on-demand laundry app. How does it help? Well, it slashes out the need of a physical location in customers’ close vicinity. The infrastructure is optimised by removing the customer-facing properties and the operations are moved to economic industrial warehouses. For example, on-demand grocery startups deliver groceries deliver groceries straight from a warehouse. Similarly, the need of an urban storage infrastructure is minimized and the inventory (if any) can be transferred to the cost-effective warehouses.

4. Logistics

While the primary issues in the laundry industry are due to variable customer behavior, several operational facets cause a serious threat to the growth of an on-demand laundry business. Logistics is one of the pressing concerns for any laundry-based on-demand services. At times, when the customer is unavailable at home, the pickup or delivery procedures get halted.

Also, at times, miscommunication ripens between the customer and the delivery personnel which ruins the brand’s credibility. Delayed orders are also a headache for an on-demand laundry business owner, which resulting in loss of regular customers. At times, the delay is intentional, when the delivery man, or the operational staff gets late, but at another instance, the delay may be caused due to your field force failing to locate the customer address.

In such an atmosphere, it turns all the more crucial to track your field force, no matter what business you are in. But, if you are in the on-demand laundry business-and you plan to grow, monitoring your field force is a necessity for your business. Moreover, you can track their real-time location through dedicated TrackOx On-demand App Development Services to help your business grow exponentially.

Happy Washing!! :D