Food
Once the global COVID-19 pandemic hit the Philippines, so many aspects of life were forced to change seemingly overnight. So many of the things people had become accustomed to, from meeting up with friends to being able to commute to work, were suddenly not available anymore, as a result of the need for caution. This had many unfortunate consequences, including many Filipinos being laid off from their places of employment.
However, despite all the challenges presented by the time, Filipinos have managed to demonstrate their resourcefulness, with many successfully pivoting to new income streams and opportunities. Some have elected to explore the gig economy, while others have sought to establish home businesses. One of the more popular ones in recent months has been private laundry services, and for many people, it’s been an easy way to make ends meet despite being unable to physically report for work. Here are some of the reasons it remains an excellent idea for a business. Who knows, maybe after reading this article, you’d be inclined to buy washing machine on sale?
It’s a Basic Need and Immune to Fads
This is so obvious that it barely merits a mention, but to be clear: clothes are a basic corporal need, and just as important as having a sufficient amount of food to eat and keeping a roof over our heads. Keeping our clothes clean and wearable prevents them from degrading faster than they should, and also keeps away potentially harmful pathogens carried by dirt and grime embedded in clothing. Therefore, keeping clothing clean is a basic need. People can go without going to see a movie in a movie theater or eating at a fancy restaurant, but having a fresh t-shirt to change into after a long day of work is simply a non-negotiable.
This means that the laundry industry as a whole is generally resistant to the forces of fads and even economic recession. While an estimated 74% of all micro, small, and medium enterprises, many laundry services remained open despite community quarantine measures.
The State of the Housing Market Could Make It Very In-Demand
Being good at business means being able to anticipate market trends and then pouncing on opportunities as they happen. The laundry services market could be that next big opportunity, given how closely it’s tied to multiple factors, including overall market penetration, the size of the laundry services market itself, and the state of the housing market in the years to come.
First of all, having a washer-dryer at home still seems to be a luxury for most Filipinos. Only about 40% of Filipino households are equipped with a washing machine, with the rest of homes either relying on more traditional hand washing methods, or outsourcing their laundry requirements to service providers. This has resulted in the laundry services market expanding to an estimated $5 billion in value, according to statistics from the Philippine Statistics Authority.
The next factor that indicates that the laundry services market is due for a boom is a little more complex, and it has to do with the housing market. Despite the ongoing pandemic, the expected number of condominium units in Metro Manila alone is expected to increase, from around 118,000 in 2018 to more than 152,000 in 2021. This spike in housing inventory, coupled with the recent economic downturn caused by the pandemic, is likely to cause housing prices to fall, making buying and borrowing more attractive to potential homeowners. Once these new homeowners begin to purchase their homes, they’re going to need the services of a laundromat or other outsourced service provider, and will likely cause the total evaluation of the laundry services market to rise. This represents an opportunity that new players in that industry can take advantage of.
Start-Up Capital for It Is Manageable
One of the best reasons to begin a home laundry service is, with a little ingenuity, it’s relatively easy to get started. First of all, if you happen to be part of the 40% of homeowners who already have a washing machine and dryer, then congratulations! You’re well on your way to establishing your business. But even if you don’t, the estimated capital needed to start a home laundry service is estimated to be between PhP100,000 and PhP250,000. This should cover the cost of a few washer-dryers and production of some simple marketing materials, as well as initial operating costs for the first few months of operation, while your business gets its bearings. You should also be able to offer a few value-adding services such as pick-up and delivery within a one-kilometer radius of your location, to expand your potential market.
With some careful consideration and planning, starting up a home laundry business could be just the thing to add a few zeroes to your bank account. While no venture is completely foolproof, laundry services definitely look like promising opportunities when the above factors are considered.
