MARKET REPORT: CAR WASH AND DETAIL
BRIGHT AND SHINY What’s the future for the car washing sector? Like so many industries, car wash and detailing has suffered a downturn from Covid-19. The good news is there are plenty of positive trends that will help drive this business into the future.
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ccording to an IBISWorld report, Car Wash and Detailing June 2021, there is only one major player with a market share above 5 per cent. Magic Hand Car Wash is the single biggest hand car wash provider in Australia, with 45 outlets, and it is the industry's largest player in revenue terms. The business model includes a cafe. Other significant players include BP Australia, Coles Express Car Wash, and Mpower Franchising, which is the parent company of mobile detailer Car Care. Franchises typically operate in the hand-detailing and mobile sector.
WHAT’S THE MARKET? • Onsite automated car washing, premium manual hand detailing, mobile services
MARKET SNAPSHOT The good news • Greater awareness of environmental impact of washing cars at home • Rising discretionary incomes and stronger economic conditions • Consumers outsourcing tasks The downsides • Increased urbanisation, more people are using public transport
FORECAST 2022-27 Annualised 3.2% rise in revenue to $577.7 million Increased number of motor vehicles will grow the market.
• No dominant brand • A mature market
BE AWARE
WHAT WILL BRING IN BUSINESS?
• Wages are a bigger part of expenses but manual hand washers tend to work part time, so costs are constrained • Other major costs are cleaning products/accessories and franchisors often control these costs through wholesale deals
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Convenience Price Loyalty discounts On sites, revamped premium areas, proximity to motor vehicle repairs
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WHY MANUAL WASH OR MOBILE SERVICES ARE A GOOD BUSINESS OPTION • Manual and mobile car washing are increasing amongst higher income consumers. High-value customers have expensive cars and household incomes at the top level have remained strong. • Premium mobile services are increasing their market share. • Climate concerns will help drive business.
DID YOU KNOW? Increased online shopping has increased the number of vehicles on the road in the private business sector.
WHO ARE THE COMPETITORS? DIY home washing and detailing Local competitors
Car wash and detailing June 2021 report from IBISWorld.
