Laundry business optimistic about future prospects<\/p>\n
Rudijanto, Contributor, Jakarta<\/p>\n
As Indonesia has struggled through multifaceted crises and
\ndeveloped over the years in its efforts to embrace the modern
\nglobal era, Indonesians living in major cities have also embraced
\na more cosmopolitan lifestyle, thus opening the market to a
\nnecessary service: the professional laundry business.<\/p>\n
"The lifestyle of Indonesians has changed, especially with
\nboth husband and wife working so that they have no time to do the
\nlaundry themselves. That is why they want the easiest solution --
\nsending their clothes to the launderer's," Jeeves of Belgravia
\ngeneral manager Marcus Taslim said.<\/p>\n
Aside from lifestyle changes, the gradually improving economy
\nhas also boosted the purchasing power of people, reflected in a
\nboost in the purchase of expensive clothes, bags and even
\ncarpets, especially those imported from exclusive boutiques and
\nmanufacturers.<\/p>\n
Such exclusive goods require professional laundry services --
\nmore than the laundering that can be done at home -- and laundry
\ncompanies meet such demands.<\/p>\n
The rising demand for professional laundry services is not
\nsolely restricted to the high- and high-middle social strata, but
\nalso applies to the lower-middle stratum. As such, laundry
\ncounters can be found from luxury neighborhoods to lower-middle
\nclass housing compounds.<\/p>\n
Consequently, professional launderers vary in the services
\nthey offer depending on their market segment. Such market
\nsegmentation is reflected in the method of laundering, from
\nexpensive machines to manual labor.<\/p>\n
"When people ask us to open a new counter in a certain area,
\nwe will survey the location first to see whether there are luxury
\nhousing complexes in the area, because our market is middle-upper
\nsegment," said Anita Firda, marketing manager of Laundrette.<\/p>\n
Laundrette's counters are usually found in supermarkets
\ngenerally frequented by the middle-upper class, such as Hero,
\nGolden Truly and Carrefour outlets.<\/p>\n
Operating since 1985, Laundrette has 80 outlets in Jakarta, 10
\nin Bandung and two in Bogor. The company enjoys a steady growth
\nof between five to 10 percent per annum in spite of tough
\ncompetition from other companies targeting the same market
\nsegment.<\/p>\n
While Laundrette seems widespread in Jakarta, other
\nprofessional launderers, especially those catering to the middle-
\nlower market in non-luxury neighborhoods, still have much room
\nfor expansion.<\/p>\n
"No, we are not competing with them because their market is
\nhigher than ours," said Arief Bagus, owner of Mawar Top Laundry &
\nDry Cleaning, which has a mere 10 outlets across Jakarta's lower-
\nmiddle class housing compounds.<\/p>\n
Arief admits that the competition in his market segment is
\ntough, and many new players are entering the market. With only 20
\nemployees, Mawar is a small-scale professional laundry service
\nmaking a living from the changing lifestyle of Jakarta residents.<\/p>\n
The laundering method of these small-scale entrepreneurs are
\nstill traditional. Some of them, like Mawar, even dry the laundry
\non rooftops. Using local commercial detergents, such as Rinso or
\nTotal, the final result cannot be compared to exclusive
\nlaunderers like Laundrette or Jeeves, but they are able to meet
\nthe needs of their market segment.<\/p>\n
Operational procedures and methods of exclusive launderers are
\non another level altogether, and are undertaken in accordance
\nwith specific standards. Using branded machines and imported,
\nspecial wells and water sanitizers to get the cleanest water,
\nthese large laundry companies have invested much in both
\nequipment and human resources.<\/p>\n
"We follow a high-standard operating procedure. Our machinery
\nis more sophisticated, and our chemicals are imported from
\nGermany. We train our people abroad and provide constant
\ntraining," Marcus said.<\/p>\n
Operating in Jakarta since 1996, Marcus said confidently that
\nJeeves of Belgravia, taking the brand name of London-based Jeeves
\nof Bavaria under a franchise arrangement, had no competitor in
\nthe upper market segment.<\/p>\n
"We are the only launderer for the A market segment. We focus
\non the A segment because we know the character of customers in
\nthis class -- famous people, politicians and successful
\nbusinesspeople who see their clothes as investments," he said.<\/p>\n
Marcus may feel secure in the upper market segment, but other
\ncompanies have begun to enter this segment, although admittedly,
\nthey operate in a slightly lower segment than Jeeves.<\/p>\n
Said Laundrette's Anita, "Jeeves operates in a higher market
\nsegment and ours is slightly lower, but I think our quality is
\nthe same. We have even succeeded in entering some apartment
\ncomplexes that already had a Jeeves counter. I think the only
\ndifference between Jeeves and us is that we are a local brand
\nwhile theirs is foreign."<\/p>\n
The competition looks to toughen up if Jeeves decides to enter
\nthe middle-upper segment, or the B segment. Marcus confirmed that
\nhe was monitoring the B segment, although he will need to conduct
\nthorough feasibility studies before making a decision.<\/p>\n
"If the timing is appropriate, we will enter this segment," he
\nsaid, but did not mention a specific date.<\/p>\n
Jeeves has nine branches in Jakarta. Claiming to enjoy between
\n15 to 25 percent annual growth, Marcus plans to open a Central
\nProcessing Unit (CPU) in Surabaya next year. Currently, the
\ncompany has only one CPU in Jakarta.<\/p>\n
"We centralize the processing of clothes from all counters at
\nthe CPU, because we can control the quality for consistency," he
\nsaid.<\/p>\n
The laundry business looks set to grow in major cities,
\nparticularly Jakarta, as the demand for this particular service
\ncontinues to rise. With the festive season of Christmas and New
\nYear fast approaching, launderers will have lots of work to do.<\/p>\n
"Our business grows by 25 percent to 30 percent during this
\nseason, compared to other months," said Anita.<\/p>\n
Like in other service-oriented businesses, the peak season for
\nthe laundry business is the Idul Fitri, Christmas and New Year
\nholidays.<\/p>\n
While the 1997-1998 monetary crisis slowed some launderers,
\nsome saw this crisis as a blessing: As people tried to cut back
\non their clothing budget, they tended to extend the longevity of
\ntheir existing wardrobe by having them laundered professionally.<\/p>\n
"The crisis has made the price of imported quality clothes
\nexpensive. Although we don't have enough data since we started
\njust before the crisis, we can say for certain that we grew
\nexponentially during this period," Marcus said.<\/p>\n
Even with industrial washing machines and other heavy
\nequipment, the laundry business remains a labor-intensive
\nindustry that absorbs many workers, which bodes well in a country
\nwith a rising unemployment figure.<\/p>\n
Professional launderers are indeed a blessing for a nation
\nthat is still struggling to fully recover, and you can rest
\nassured we will be putting our best foot forward, looking our
\nvery best.<\/p>",
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"sponsor": "Okusi Associates",
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