Laundry Competition

"We will not be affected by other players"

Laundry and dry-cleaning, an occupation having been associated with lower castes since the last 3,000 years in India, is a business worth crores today. Laundry retail outlets may be a common phenomenon both in metros and non-metro cities; however, what does it take to have a chain of such stores? Asks IndiaRetailing to Dr A Srivastva, executive director, Wardrobe, India’s leading laundry retail chain. Excerpts.

IndiaRetailing: Laundry retailing sector in India is predominantly unorganised. How was the idea incepted to organise this sector?
A Srivastva: India, as everyone knows is fast emerging as one of the biggest retail markets, with hitherto sectors also recognising the benfits of being organised. Same holds true for laundry services. With a huge potential showcased by small individual players present in each small and big city, it was obvious that with more and more people opting for branded and expensive clothes, an organised laundry chain would meet with success.

IR: You currently enjoy presence mainly in Delhi and NCR. Any plans to go pan-India?
AS: With our plant in Noida, there are 32 outlets operational in Delhi/NCR. This will touch 80-100 in Delhi and NCR by 2009-10. Additionally, we plan to open 30-35 outlets by March 2009, extending our services to Mumbai, Hyderabad, Bengaluru and Chennai. We also plan to take our chain to tier II and III cities in next two years.

IR: What expansion mode are you planning — franchisee mode or company owned outlets?
AS: As of now, it is purely company owned outlets. However, we may explore opportunities through franchisee mode in future.

IR: What is your modus operandi?
AS: Logistics and supply chain are our biggest strengths. We have 8-10 vehicles moving throughout the day to our different outlets in Delhi and NCR. These vans pick the dirty clothes and deliver at the Noida plant where the clothes are washed in RO water. Because of all our chains being technically connected, there is no delay in delivery and we are able to execute express orders too.

IR: Who are your target consumers?
AS: We target upper class and upper middle class people because these are the people who spend money on costly apparel which needs to be washed properly. We have also partnered with an Australia-based laundry retail chain named Brown, which is our technical partner. We are also targeting big corporate houses.

IR: What are the challenges for you with more players joining the league in the near future?
AS: Somebody has to lead; we will not be affected by other players joining in as our USP will be experience. Meanwhile, as of now, competition in this sector is at a nascent stage.

— Shailesh Shah
Thankx retailtrading