Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- ACORN
- Advertising data
- Abbreviations
Premier Insight
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- Make use of the Internet as a professional communication tool
- Uniting the independents
- Expand network of influence
- The introduction of GreenEarth should be used as a positive marketing tool.
- Women need to be tempted by more than a laundry service
- Consumer perceptions need a makeover
- Encourage more frequent use
Executive Summary
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- 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
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- The impact of the EC Solvent Emissions Directive
- Growth in discretionary income offers opportunities
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- 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
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- 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?
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- 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
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- Figure 6: Proportion of men purchasing items of clothing, 1997-2004
- Seasonal fluctuations have become less pronounced
Market Size and Trends
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- Market revenues show signs of stagnation
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- 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
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- Figure 9: UK retail dry cleaning market, by volume, 1999-2004
Market Segmentation
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- Clothing care becomes the buzzword in diversification
- Other services
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- Figure 10: Dry cleaning as a proportion of total services revenue, 2004
- Laundry services likely to expand further
- Regional variations in expenditure
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- Figure 11: Average UK annual expenditure on dry cleaners, laundry and dyeing, by region, 2000/01 and 2002/03
The Supply Structure
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- Johnson Service Group tightens grip on market
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- 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
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- Johnsons continues to strengthen foothold in market
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- 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
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- Figure 15: Estimated number of UK dry cleaning outlets, by location, 2000-04
- New developments
- Home delivery
- Premium service/segmentation
Advertising and Promotion
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- Above-the-line interest continues to slide
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- Figure 16: Main monitored media advertising expenditure by dry cleaners and launderers, 1999-2004
- Investment by market leader makes the difference
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- Figure 17: Johnson Service Group’s main monitored media advertising expenditure, 1999-2003
- Smaller companies capture increasing share of above-the-line market
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- Figure 18: Main monitored media advertising expenditure, by dry cleaners and launderers, 2001 and 2003
- Below-the-line assuming greater importance overall
The Consumer
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- 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
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- 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
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- Figure 21: Weight of usage of stain removers, 2002-04
- Detailed Demographics
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- Figure 22: Frequency of dry cleaning use, by gender, age, socio-economic group, lifestage and Mintel’s Special Groups, October 2004
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- Figure 23: Frequency of dry cleaning use, by region, marital status, household size, presence of children and ACORN category, October 2004
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- 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
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- Figure 25: Dry cleaning services used, by genger, age, socio-economic group, lifestage, region, household size and Mintel's Special Groups, October 2004
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- Figure 26: Dry cleaning services used, by marital status, presence of children, media usage, supermarket usage, ACORN category and commercial TV viewing, October 2004
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The Consumer – Habits and Attitudes
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- Figure 27: Attitudes towards using dry cleaners, October 2004
- Majority of public favour use of home laundry where possible
- Specialists under suspicion…
- …albeit offering benefits to some
- Perception – the main barrier
- Female of the species more suspicious than the male
- No time to care
- When the price isn’t right
- Disposable attitudes
- Regional trends
- Use of dry cleaning for special occasions is near universal
- Frequency of use by service type
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- Figure 28: Cross-analysis of frequency against dry cleaning service type used, October 2004
- Coaxing with coats
- Steady base for non-clothing
- Ancillary service approach needs rethinking
- Influence of attitude on usage
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- Figure 29: Attitudes towards dry cleaning, by frequency of dry cleaning, October 2004
- Finishing touches
- Balancing cost versus benefits
- Targeting committed users
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- Figure 30: Repertoire analysis of dry cleaning services used, October 2004
- So who uses what?
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- Figure 31: Repertoire analysis of dry cleaning services, October 2004
- Job perks and the daily grind
- BCO – bad coat odour
- Thriving on the three-or-more-items consumers
- Detailed Demographics
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- Figure 32: Attitudes towards dry cleaners, by gender, age and socio-economic group, October 2004
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- Figure 33: Attitudes towards dry cleaners, by lifestage, region, marital status, presence of children, household size and Mintel’s Special Groups, October 2004
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- Figure 34: Attitudes towards dry cleaners, by media usage, supermarket usage, commercial TV viewing and ACORN category, October 2004
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The Future
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- Market prospects more positive than ever
- Strong demand from key groups remains
- Dry cleaning et al
- Period of settlement after recent acquisitions
- Supermarkets set to continue to expand
- What next for GreenEarth?
Forecast
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- Tough reality dawning for dry cleaning
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- Figure 35: Forecast of the dry cleaning market, 2004-09
- Figure 36: Projected index growth rates, at current and 2004 prices, 2004-09
- Shops increasingly look to broaden offer
- Better communication of benefits needed
- Changing perceptions of the role of the traditional dry cleaner
- Factors incorporated in the forecast
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