Abstract
The market for dry cleaning services has declined in each of the last three years. This has resulted in a restructuring of the industry and a diversification of the services offered by these outlets. By contrast, the market for other household retail services, principally repair, laundry and ironing services, and key cutting/locksmiths, has grown, although there are signs that market growth is slowing in this category.
The dry cleaning sector cannot rely just on diversification of its offer to restore growth but needs to rethink its role in modern consumer lifestyles. This report reviews the recent developments in the dry cleaning and repair market and, based on consumer research, identifies some new directions for the sector to take.
Key themes of the report:
- What has been the effect of cheap fashion, easycare clothes and dressing down for work on the dry cleaning business?
- What scope is there to extend the range of retail services offered by dry cleaners?
- Do consumers' environmental concerns threaten the dry cleaning sector or do they provide an opportunity for future growth?
- What are the principal benefits of dry cleaning for consumers and what are the main barriers to the increased use of dry cleaners?
- Which are the key consumer segments that offer opportunities for growth in the dry cleaning and household retail services market?
Table of Contents
- Issues in the Market
- Key themes
- Definitions
- Abbreviations
- Market in Brief
- A market slowing down
- Market becomes more competitive
- Environmental constraints
- Industry restructures
- Promotions are limited
- Negative attitudes towards dry cleaning
- Accentuate the positive
- The future
- Internal Market Environment
- Key points
- Less formal work clothing
- More value clothing
- Shoes also reduce in average price
- Figure 1: Average prices for footwear, UK, 2002-07
- Shift to casual shoes
- Figure 2: Types of footwear purchase, by value, 2007
- Stain-resistant fabrics
- More stringent environmental controls
- Rising oil prices put pressure on dry cleaners
- Broader Market Environment
- Key points
- Slower consumer expenditure to hit dry cleaning
- Figure 3: Trends in PDI and consumer expenditure, 2003-13
- Age and social class changes favour dry cleaning
- Figure 4: Trends in UK population, by age, 2003-13
- Figure 5: Forecast adult population trends, by socio-economic group, 2003-13
- Smoking ban reduces cleaning demand
- Environmental concerns
- Figure 6: Agreement with selected lifestyle statements about the environment, 2002-08
- Competitive Context
- Key points
- Clothing outstrips dry cleaning
- Figure 7: UK clothing and footwear market and dry cleaning market, 2003-07
- Dry cleaning lags household detergents
- Figure 8: Market value of dry cleaning and clothes-washing detergents, 2003-07
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Value and Forecast
- Key points
- Dry cleaning in decline
- Figure 9: UK retail dry cleaning market, by value, 2003-08, forecast 2009-13
- Short-term decline...
- Factors used in the forecast
- Wider repair and services market more buoyant
- Figure 10: UK retail market for dry cleaning and other household retail services*, by value, 2003-08
- The future
- Segment Performance
- Key points
- Clothes care is major part of market
- Figure 11: Segmentation of the UK retail market for household retail services, £m, 2007
- Laundry and clothes care
- Shoe repairs market more variable
- Other repair services
- Market Share
- Key points
- Restructuring drives brand share changes
- Figure 12: Brand shares in the dry cleaning market, 2003-07
- Morrisons continues the Safeway tradition
- Companies and Products
- Key points
- Few multiple operators
- National dry cleaners
- Johnson Service Group
- Timpson
- Regional chains
- American Dry Cleaning Company
- Barker Group
- Munro (Bowie Castlebank)
- White Knight Laundry and Dry Cleaning
- Specialist services
- Brand Communication and Promotion
- Key points
- Advertising spend is low
- Figure 13: Advertising spend by dry cleaners, 2004-07
- Below the line the main promotional vehicle
- Channels to Market
- Key points
- Outlet numbers continue to decline
- Figure 14: Estimated number of dry cleaners, by fascia, 2003-07
- Out-of-town locations perform best
- Usage of Dry Cleaning and Other Household Services
- Key points
- Introduction
- Majority are non-users
- Figure 15: Frequency of usage of dry cleaners, 2000-08
- Figure 16: Demographic profile of high-frequency users of dry cleaners, by gender, age and socio-economic group, May 2008
- Suits continue as main dry clean item
- Figure 17: Items taken to dry cleaners and other dry cleaning services used in the last 12 months, May 2008
- Majority of consumers use other servicesFigure 18: Other household retail services used in the last 12 months, May 2008
- Appendix: Usage of Dry Cleaning and Other Household Services
- Figure 28: Frequency of usage of dry cleaners, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage and household size, May 2008
- Figure 29: Items taken to dry cleaners and other dry cleaning services used in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage and household size, May 2008
- Figure 30: Other household retail services used in the last 12 months, by gender, age, socio-economic group, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage and household size, May 2008
