2:29:32 PM | 8/28/2023
After successfully growing laundromat businesses in other ASEAN markets, Alliance Laundry Systems – a US company with 115 years of experience in laundry industry is accelerating this recession-resistant business model to Vietnam.
Alliance Laundry Systems (ALS), the global leader in commercial laundry equipment, is making a strategic move to penetrate and expand its presence in Vietnam under its 05 well-known brands, namely Speed Queen, UniMac, Huebsch, Primus, and IPSO. Apart from supplying commercial equipment, the company is recognized for successfully growing laundromat franchises around the world, particularly in markets with similar characteristics to Vietnam such as Thailand, Malaysia, Indonesia and Philippines. Currently ALS is looking for new business partners by welcoming all local entrepreneurs who share a vision for revolutionizing the commercial self-service laundry sector in Vietnam.
Vietnam is a promising market for laundromat business thanks to its fast-growing economy with almost 100 million consumers and how Vietnamese middle class and the younger generation in urban cities have become more and more adaptive to new consumer trends. According to Ministry of Industry and Trade in May 2022, the size of Vietnam’s commercial laundry market was estimated at US$205 million per year with a growth rate of 6%, higher than the Asian average of 3.6%. Statistics of 2022 also showed that there were about 15,316 laundry shops in the country with more than 60% of them launched within the period of 2020 – 2022, of which, more than 96% were small-scale and household businesses. The preferred business model by Vietnamese business owners has been a combination of traditional kilo-laundry serviced by support staff and self-service laundromat. Therefore, laundromat stores become a potential investment as the market is growing with high demand and low competition.
As proven in other ASEAN markets where ALS has had strong foothold, self-service laundromat is a business model that is more favored by entrepreneurs of commercial laundry market thanks to the fact that it can operate without the need for 24/7 staff, with faster wash and dry cycles (usually within one hour), unlike traditional laundry. This results in a significant reduction in labor cost and higher return on investment for this new generation of stores.
One laundromat store using ALS’s equipment in Thailand
What also sets the self-service laundromat franchise model provided by ALS apart from other traditional laundry services is that it is a recession-resistant business that historically produces steady ROI. Other factors which attract investors are simple day-to-day operation and the commitment to industry-best customer service that could cater to the expectation of the customers with a relatively small investment, making it an excellent investment for both those who look to start a new business and those who have plan to grow their existing business portfolio.
“Take Thailand as an example of exponential growth of the laundromat market where seven years ago, there was almost not a single laundromat in the country to the current situation where there is almost a laundromat in every neighborhood”, shared Mr. Sukree Kirai, Senior Regional Sales Manager, Alliance Laundry Systems. “The feedback on our laundry equipment and solutions we’ve received in Vietnam through our local partner has been positive. Vietnam and Thailand markets share great similarities in consumer culture and behaviors and we’re positive that, with our experience in Thailand and other Asian markets, we could facilitate the rapid growth of this relatively new business sector here”.
One laundromat store using ALS’s equipment in Thailand
In 2022, ALS reached nearly 2,200 laundromats in Thailand using its equipment, securing the largest market share at 63% of laundromat market.
Growth rate of the number of laundromats using ALS equipment in Thailand per year
Alliance Laundry Systems is founded in 1908 with the mission to make the world cleaner, ALS has invested over US$300 million in R&D and manufacturing within the last five years. It currently operates in over 140 countries via more than 1,000 distributors and 9 direct offices worldwide. The company’s commitment to Vietnam market reflects the growing demand for quality laundry services, from domestic consumers and international travelers. These, in turn, have resulted in a rise in demand and investment laundry services, especially in the big cities, and ALS believes now is the right time to accelerate its foothold in Vietnam.
Source: Vietnam Business Forum
(1).jpg)
Vietnamese
