Eco- Friendly. Convenience. Quality. OXXO CARE CLEANERS WHITE PAPER 2018
marketplace overview If you are like many Americans, you re bound to have a few items around the house that can t be laundered in the weekly wash. And in today s day and age, the speed at which we operate doesn t allow us much time to lollygag. As Americans, we have the need for speed. We want to zip in and out. That should be how long it takes you to drop off and pick up your dry cleaning! Convenience is paramount to good dry cleaning. Beyond that, there are many more benefits of professional dry cleaning: alterations, buttons, expertise, inspection, knowledge of fabrics and fashions, odor removal, preservation, restoration, quality, technology, upholstery and value all make the case for why you should dry clean your clothes and other fabric items. The dry Cleaning industry has a very low level of market share concentration. Currently, the top four dry cleaning companies, all which are national franchisors, represent less than 3.0% of total industry revenue. Despite the industry's highly fragmented nature, there has been some industry consolidation in recent years. Competition in the dry cleaning business in the US is fierce. Latest research reports show that there are approximately 36,700 business in this segment with revenue of about $9 billion in 201 employing near 150,000 people. Dry Cleaning business have suffered in recent years as clothing has become easier to care for, but some innovative models and specialty offerings such as green cleaning are showing promising growth. Once again, Quality, Convenience and Eco-friendly are what dry cleaning customers are looking for today. The Dry Cleaning industry is growing and plenty of opportunity still exists for innovation and technology.
2018 DRY CLEANING AT A GLANCE Dry cleaning consists of collecting clothes, either at a retail location or from a customer s home, and cleaning them either at the retail location or a centralized facility, pressing the clothes, and returning the clothes to the customer. The return for owners on a dry cleaning business is, on average, 17 percent.3 Most people would agree that, over time, an average annual return of 5 to 12 percent on your investment dollars is good, and anything higher than 12 percent is excellent.4 The return for owners on a dry cleaning business is, on average, 17 percent.
INNOVATION IN DRY CLEANING
While the dry cleaning industry at large in the US hasn t changed much in years, there is changing the game with tim European d r y - c leaning ideas. Making use o industrial steam presses, OXXO Care Cleaners is differentiating themselves in the crowds of both mom and pop stores and franchises. 1. OXXO Care Cleaners offers a unique 2 pick-up and drop- off technology offering customers the convenience of round-the - clock service, customers can access their garments through an easy-to - use, ATM-style window literally any time of the day. 2. In addition, OXXO Care Cleaners uses no harsh chemicals. As consumers continue to look for ways to practice sustainability, the Green Earth Cleaning friendly solvent provides costeffective and non-toxic garment care that doesn t harm customers, their clothes, the environment or the store personnel. A hand-ironed finish; Instead of using the industry standard method of steam pressing, all OXXO Care Cleaners garments are hand-ironed to provide a beautiful look and comfortable feel. Traditional steam pressing does a disservice in two ways: It compromises air quality in and around a dry cleaning store and it actually shortens the lifespan of customer's garments. The most advanced technology, with the inclusion of an automated assembly conveyor that significantly reduces time-consuming labor, an automated ATM style pick-up system that saves counter's people time, and a fully developed mobile app to provide Franchisees with a tool to increase volume and customers with an easy to use solution for their needs.
THE ENVIRONMENT Green cleaning products and procedures are a trend to watch out for in the future. Federal regulations are a factor for business owners, governing environmental emissions and disposal of potentially hazardous chemicals which are involved in the dry cleaning process. For dry cleaners, the wet cleaning process is one these forms of technology that is becoming more popular. In addition, dry cleaners should be prepared to face tighter water supply regulations in some areas of the country.2 The shift toward green dry cleaning is headed by California, where in 2007, the state committed to phasing out perchloroethylene by 2023, offering grant money to cleaners that switch from perchloroethylene to environmental products or wet cleaning. (Cont. on next page) THE OPPORTUNITY T he dry cleaning industry is extremely fragmented with no large national player and few dominant regional yers, which creates a unique opportunity for someone to emerge as the single dominant national player.1 Efficiency and good location are imperative to successful dry cleaning companies.2 Customer retention is also very important. If you really impress a client, it s easy to retain them monthover-month. Besides our single unit opportunity, we offer to qualified applicants the right to develop a number of stores within a specified exclusive development under an OXXO Multi-Unit Development Agreement. The development area and the number of stores to be opened will be set forth in the Multi-Unit Development Agreement. According to experts, as franchising continues to provide a consistently profitable option for investors, bigger Multi-Unit Franchisees will continue to increase their numbers and influence. While as a Multi-Unit Franchisee you will require a higher investment level, you will also benefit from more stability and a higher expected rate of success, as you are not reliant on only one location to be successful. There are also saved costs because of the efficiencies of having on back of the house for multiple locations. Additionally, OXXO Care Cleaners will offer reduced franchise fees and royalty breaks to entice them to invest in this business model. During the Multi-Unit conference, Buy one and Get one Franchise Fee with the purchase of an OXXO Multi-Unit package (min 3 Franchised Stores)
States like Massachusetts and New York are considering similar legislation. As environmentalism becomes more and more popular and new environmental regulations come onto the books, businesses should keep in mind the benefits of being green.2 But business and customers alike should be cautious of wet cleaning, as it often isn t much of an alternative to environmentallydamaging dry cleaning. The wet cleaning process actively damages a customer s clothes and is often only used as a last resort. Many dry-cleaners end up using wet cleaning as a way to save costs, even though this procedure ultimately isn t safe for their customers clothes. JOIN THE MOVEMENT O OXXO Care Cleaners is capitalizing on the additional market opportunity of the dry cleaning industry and is expanding through an aggressive franchise expansion program. With more than locations servicing hundreds of residents in the US and abroad, OXXO Care Cleaners is now focusing on additional key markets throughout the country to secure as much of the market opportunity available as possible. Franchisees can launch an entire business of their own, with the ongoing training and support that comes with owning and operating an OXXO Care Cleaners franchise business.
NOW. Do you think you have what it takes? If you re interested in learning more about the OXXO Care Cleaners concept and franchise offering, please visit oxxocarecleanersfranchise.com, call 866.462.6996 or email info@oxxocarecleanersfranchise.com. SOURCES 1 http://www.usdrycleaning.com/growth-strategy 2 https://www.franchisehelp.com/industry-reports/cleaning-industry-report 3 http://www.bizstats.com/dryclean.htm 4 http://www.entrepreneur.com/article/206466