Dry Cleaning - UK - December 2004 - Market Research Report

Contents

Introduction and Abbreviations

Definitions

Consumer research

ACORN

Advertising data

Abbreviations

Executive Summary

Market revenues show signs of stagnation

Dry cleaners accept EC Solvent Emissions Directive, and move on

Johnson Service Group emerges as key player

Supermarkets – friend or foe?

Threat from home dry cleaning kit unrealised

Occasional use dominates the market

Small but loyal segment sustaining the market

Future outlook is more of the same

Market Drivers

The impact of the EC Solvent Emissions Directive

Growth in discretionary income offers opportunities

Figure 1: Trends and projections in PDI and consumer expenditure, at current and constant 1999 prices, 1999-2009

Figure 2: UK adult population, by socio-economic group, 1998-2009

Growth in household expenditure

Figure 3: Components of household expenditure based on weighted data and including children's expenditure, 2001/02 and 2002/03

Figure 4: Trends and projections in the number of employed consumers, by gender, 1998-2009

Added value brings another dimension

The appeal of the dry cleaner lies in the finishing service

‘Dry clean only’- a thing of the past?

Figure 5: Ownership of washing machines, tumble dryers and dishwashers, 1999-2004

Dry cleaners join exodus to out-of-town retail parks

Home dry cleaning kit fails to take off

The suits are back

Figure 6: Proportion of men purchasing items of clothing, 1997-2004

Seasonal fluctuations have become less pronounced

Market Size and Trends

Market revenues show signs of stagnation

Figure 7: UK retail dry cleaning market, by value, 1999-2004

Figure 8: UK retail dry cleaning market, by value, 1999-2004

Adding value to change

Volumes show steady decline

Figure 9: UK retail dry cleaning market, by volume, 1999-2004

Market Segmentation

Clothing care becomes the buzzword in diversification

Other services

Figure 10: Dry cleaning as a proportion of total services revenue, 2004

Laundry services likely to expand further

Regional variations in expenditure

Figure 11: Average UK annual expenditure on dry cleaners, laundry and dyeing, by region, 2000/01 and 2002/03

The Supply Structure

Johnson Service Group tightens grip on market

Figure 12: Brand shares in the UK dry cleaning market, by value, 2000-04

Figure 13: Brand shares in the UK dry cleaning market, by value, 2004

Companies and brands

Johnson Service Group

Munro (Bowie Castlebank)

Grocery retail partners

Safeway

Sainsbury's

Timpson Group

Other retailers

Distribution

Johnsons continues to strengthen foothold in market

Figure 14: Estimated number of UK dry cleaning outlets, by fascia, 2000-04

Mid-market players continue to suffer

Morrisons acquisition casts doubt on future of Safeway outlets

Supermarket outlets continue to present opportunities

Independent numbers continue to decline

Out-of-town locations prove more appealing

Figure 15: Estimated number of UK dry cleaning outlets, by location, 2000-04

New developments

Home delivery

Premium service/segmentation

Advertising and Promotion

Above-the-line interest continues to slide

Figure 16: Main monitored media advertising expenditure by dry cleaners and launderers, 1999-2004

Investment by market leader makes the difference

Figure 17: Johnson Service Group’s main monitored media advertising expenditure, 1999-2003

Smaller companies capture increasing share of above-the-line market

Figure 18: Main monitored media advertising expenditure, by dry cleaners and launderers, 2001 and 2003

Below-the-line assuming greater importance overall

The Consumer

Figure 19: ‘How often, on average, do you send or take items to the dry cleaners?’, 1997-2004

Nearly half of respondents never use dry cleaners

Occasional use dominates the market

Small but loyal segment sustaining the market

Usage patterns

Age and affluence are significant

Broadsheets are an effective target medium

White-collar hot spots

Over-55s tend to be occasional users

ABC1 families are strong targets for increasing frequency

Majority of non-users in DE category

Non-use up North

Analysis of usage

Figure 20: ‘Which of the following dry cleaning services do you tend to use?’, October 2004

Dressed for success?

Specialist services hold more niche status

Complementary services hold marginal appeal

Consumer usage patterns

Formalwear market matches frequent use profile

35-44: A key age group

Still a man’s world

Outdoor clothes present an opportunity

Growing the consumer base

Specialist items are fashion-led

Non-clothing items have relatively broad appeal

Stain removal

Use of stain removers

Figure 21: Weight of usage of stain removers, 2002-04

Detailed Demographics

Figure 22: Frequency of dry cleaning use, by gender, age, socio-economic group, lifestage and Mintel’s Special Groups, October 2004

Figure 23: Frequency of dry cleaning use, by region, marital status, household size, presence of children and ACORN category, October 2004

Figure 24: Frequency of dry cleaning use, by media use, supermarket use and commercial TV viewing, October 2004

Dry cleaning type, filtered on users of dry cleaning services

Figure 25: Dry cleaning services used, by genger, age, socio-economic group, lifestage, region, household size and Mintel's Special Groups, October 2004

Figure 26: Dry cleaning services used, by marital status, presence of children, media usage, supermarket usage, ACORN category and commercial TV viewing, October 2004