Author: Mintel Group Ltd.
Last saved by: HTTP server

Dry Cleaning - UK - December 2004

INTRODUCTION AND ABBREVIATIONS
Definitions
Consumer research
ACORN
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
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
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
THE CONSUMER – HABITS AND ATTITUDES
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
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
Figure 29: Attitudes towards dry cleaning, by frequency of dry cleaning, October 2004
Finishing touches
Balancing cost versus benefits
 TARGETING COMMITTED USERS
Figure 30: Repertoire analysis of dry cleaning services used, October 2004
So who uses what?
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
Figure 32: Attitudes towards dry cleaners, by gender, age and socio-economic group, October 2004
Figure 33: Attitudes towards dry cleaners, by lifestage, region, marital status, presence of children, household size and Mintel’s Special Groups, October 2004
Figure 34: Attitudes towards dry cleaners, by media usage, supermarket usage, commercial TV viewing and ACORN category, October 2004
THE FUTURE
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
Tough reality dawning for dry cleaning
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

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.