Before COVID Japan was still the biggest Drycleaning market in the World. However, during the COVID period many cleaners closed. Meanwhile Dress Codes changed and drycleaning was just not that attractive anymore. Shirts became the most popular product and finishing was top. However, sales of drycleaning solutions dropped considerably.

Focus

So the cleaners don’t spend so much on drycleaning anymore. The focus is now more on water, but that is much more difficult compared to drycleaning. This includes an easier finishing. Laundered garments are less expensive and need less expensive cleaning technologies. Hence, Textile Cleaners need to evaluate their business perspective and transfer to another business model. They need to be able to process more less expensive products effectively (only used one day) and focus on a more appropriate cost structure. However, drycleaners have their OWN cost concept and need to be able to transfer their ideas to the next level. This requires knowledge on market developments and trends first and as a result of that a professional focus on new options and opportunities.

Legislation

To a large extend this is also up to the government in Japan. Japanese National LAWs on laundering in water, such as for instance washing towels and washing diapers, are regulated by old fashioned laws, based upon old technologies (mandatory 80 degrees C hot washer with 10 minutes washing time). For many textiles that is simply impossible. Process like that and the fabric will be gone. If governments do not change regulations the market is very limited.

Quality & Price

The business is up to the quality and the price. As an entry level pricing of drycleaning is very important. Otherwise only few people can afford. The Top End of the market is attractive. But cleaning of shirts for 1 euro treatments are not possible anymore because of sharp increases in labor cost. At the same time there will be more garments which can be laundered in the future.

Japanese customers normally paid only 1 euro per shirt. But at these days labor cost were low. Some 70 companies were able to do a 10 Mio. euro of sales every year. It was a good business model. As a result, sales of washing extractors and finishing equipment were okay as well.

These days the average sales price for cleaning is 1,50 euro per shirt. But that is very expensive for Japanese people. Manufacturers need a volume; otherwise, new investments will become very difficult.

Challenging times

So labor savings solutions are really Key. Markets are becoming more expensive. But pricing and volume are indeed Key. Can we yes or no cover this market in a consistent way.

This is a difficult discussion because in many countries the employees are not always so disciplined. Automatic solutions are coming, but some handling is still needed and that is sometimes very difficult. It requires indeed special attention.

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