Challenges and Global PTC Services in Current and New Markets

Transcription

1 CINET TSA Programme Clean Show `11 Challenges and Global PTC Services in Current and New Markets Dr. Geert Böttger Expo+Consulting Associates Düsseldorf June 2010

2 Scattered Europe PTC Turnover in Europe is approx. 5 bn Euro CINET 2011

3 Scattered Europe Italy and Germany are the Largest Markets 100 % = 4,0 bn. CINET 2011

4 Scattered Europe Markets in Romania and Germany Are In Different Stages CINET 2011

5 The Economic Challenge Development of Turnover Problem 1: Turnover is Expected to Stagnate Expected Turnover Next 5 Years Answers in Percent 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 increase stagnant decrease Source: Cinet 2010, PTC in 5 Years

6 The Economic Challenge Growth of Selected Prices Problem 2: Prices for Some Cost Factors Rise More than Service Prices Development of Selected Prices 130 index 2005 = Base: Statistisches Bundesamt 2010 Dry Cleaning Energy Rental Example Germany

7 The Economic Challenge The Challenge is to Revitalize PTC Services Profitably Sales Launch Growth Maturity Saturation Possible Further Development Renewed Growth Shrinkage Disappearance from Market Phase of Life Cycle

8 Customer Markets Market Segments Consumer Market is Dominating With More Than 70% Health & care, hotel and company markets resemble 24% Turnover 2007 Western Europe by Business Segment in % Consumer 13 H Companies Healthcare 71 Hotel Other Source: Cinet 2009

9 Customer Markets Expected Growth by Market Segment Growth Potentials are Envisaged in the Non-Consumer Customer Groups Expected Development by Segment Answers in Percent 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 ConsumersCompanies Healthcare Hotels sharp increase increase stagnant decrease sharp decrease Source: Interviews

10 Hotels & Restaurants Development HORECA Companies in EU 27 The Number of Companies Active in the Hotel, Restaurant and Catering Business Has Increased Over the Years in the EU 27 HORECA Companies EU 27 Millions Base: Eurostat

11 Hotels & Restaurants Development of Bed Capacities in Europe Bed Capacities Increased Continuously Beds in EU Years Base: Eurostat

12 Hotels & Restaurants Development Hotels & Restaurants Segment Hotel & Restaurant Business Will Become a Growth Area Development of Hotel & Restaurant Business Answers in % sharp increase increase stagnant decrease sharp decrease Source: Interviews

13 Health & Care Share of Aged People The Share of People Older than 65 is Increasing All Over Europe People over 65 in % of Population % Base: Eurostat

14 Health & Care Development of Nursing Homes The Number of Homes for the Aged Will Increase Continuously Number of Nursing Homes , ,424 11, ,859 9,165 9, Source: Böttger 2008a care statictics 2007 number of homes forecast forecast Example Germany

15 Competition Strategy Options for Competition A Clear Direction in Relation to Competitors is Vital Cost Leadership in All segments Value Leadership in All Segments ALL CUSTOMER GROUPS Competition Cost Leadership in Special Segment Value Leadership in Special Segment SPECIAL SEGMENT L0W COSTS HIGH COSTS Competitive Advantage

16 Competition Low Price Strategy Low Price Strategies Need Low Cost Leadership Source:

17 Competition Collaboration with Laundries and Textile Service There are Numerous Ways to Cooperate With Large Laundries and Textile Service Companies Textile Service/ Laundry + PTC Textile Service/ Laundry Mass PRODUCTS Cotton and Poly-cotton PTC Textile Service/ Laundry Products SPECIAL RODUCTS Wool, Artificial Fibres etc. SMALL CUSTOMER BIG CUSTOMER Customer Size

18 Core Technologies Laundries in PTC Units Laundry Capacities Are Often Complementing the PTC Resources Units with Dry Cleaning & Laundry in Selected Countries % 100,0 80,0 60,0 40,0 20,0 0,0 Source: Cinet 2009

19 Opportunities and Challenges by Function Inhouse Value Chain New Market Approaches and New Competitive Strength Can Be Built at Each Pillar of the Companies Value Chain. General Management Infrastructure Supporting activities Buying Inbound logistics Production Outbound logistics Marketing Sales Margin Main activities Base: Porter (1994)

20 Future Production Main Areas of Investment Progress is Expected in Many Parts of the Production Process. Special emphasis is on quality, environmental efficiency and productivity Green PTC: less energy, less detergents, less water = lower costs/kg Trend Order EntryPre- Sorting Treatment Cleaning Post Spotting Post Wet Treatment Finishing Sorting Dispatch Quality x x xx x x xx xx Ecological Efficiency xxx xx x Productivity xx xxx x x xx xx

21 EPOS and Internal Flow of Material Lay Out Material Flow An Efficient Flow of Material Has Interfaces to the EPOS System Dispatch Conveyor Belt Feeding Station Incoming & Dispatch Interface Ironing Section Packing Machine Order Completion Belt EPOS Shirt Set v Interface Cleaning & Laundry Machines Energy Supply

22 Proximity to Customers Consumer Comfort: Distance The Distance to Dry Cleaning Shops is a Critical Factor The Accepted Distance to Go to the Dry Cleaning Shop: Less than 10 km Less than 1 km Less than 5 km Base: DTV 2008

23 Proximity to Customers 24 - Hour Service Automatic Drop Off and Pick Up Systems Increases Availability Source: Kokerbeck 2008

24 Promotion Promotional Valet Service Complimentary Valet Vervice Is a Dramatically Strong Promotion Tool Base:

25 Base: DTV 2008, Multiple Answers Consumers Overview Consumer Requirements Consumers Express a Relative High Priority for a Quality Certificate Most Important Consumer Requirements Spot Elimination Material Protection Ironing Performance Staff Duration Accessibility Pickup / Delivery Service Discounts Loyalty Card Quality Certificate Other

26 Quality Selected Quality Certificates Quality Certificates Ensure the Establishment of Quality Management

27 Branding FashionCare in the World FashionCare is Branding Internationally a System for High Quality Textile Care Over 300 companies are currently certified FashionCare cleaners worldwide: Germany 176 USA (min) 25 Austria 14 Netherlands 79 Switzerland 15 Others 2

28 Future Marketing and Sales Knowledge about PTC Offering More Than 45% of Customers Don`t Know the Full Offering of PT Comprehensive Knowledge of PTC Offering yes no not available Base: DTV 2008

29 Promotion Customer Magazine Customer Magazines Are a Proven Tool to Raise the Profile of the Industry And the Knowledge of Customers Cover of the German Customer Magazine Reiniger@work 01/09

30 Profitable Online Marketing and Social Media Tools Traditional Marketing Looses Market Share, but Remains Important Traditional Marketing High spreading loss, relative high costs, low response advertising postmailing flyers personal contact Your team.

31 Profitable Online Marketing and Social Media Tools Marketing is More Efficient than Traditional Marketing: Better reach and lower costs Comparison of postal and marketing Production + mailing costs per recipient Postal Mailing ing 0,50 1,00 0,05 0,10 Click rate % Costs per click --- 0,33 0,67 Conversion rate 1,5 % 5 % Costs per purchase ,7 13,30 Implementation time 3 weeks 5 days Time to feedback 3 weeks 3 days Source: Aschoff 2003

32 Profitable Online Marketing and Social Media Tools Internet Penetrates Life - Three critical drivers are reinforcing each other CRITICAL MASS N of households with internet access N of users Minutes online per day RELEVANT INFORMATION AND TRANSACTION Information Selling Buying Banking Evaluation... SOCIAL WEB Connecting friends Special interest communities Info sharing

33 Profitable Online Marketing and Social Media Tools The Online Equipment Mix Online marketing functions Newsletters Response Online advertising Microsites Partner Programmes SEO SEM Blogs Wikis Evaluation Recommendation Social Media COOPERATION TRANSACTION COMMUNICATION INFORMATION Acquisition process + Customer life cycle

34 Digital Marketing PTC Online Offers Online Management of PTC Software Business Model Brand

35 Profitable Online Marketing and Social Media Tools Shirtrunner is Concentrating on Managers and Business Wear Crucial is an added pick up and drop of service The Online PTC Shop Customer registration Management of the personal account Catalogue of cleaning services offered Order of cleaning services Overview orders (basket), including past and actual orders Invoice preview and final invoice Barcode order ticket Scheduling pick up; change of pick up time Scheduling delivery; change of delivery time Tracking current status of order by customer Personal notification: tomorrow is shirtrunner`s day Online payment by credit card or EC card Also attractive for B2B customers

36 Profitable Online Marketing and Social Media Tools A State of The Art Website Might Include Some More Features Forum Wiki Newsletter Service Newsletter Archive Priority Club Sms Notifications Vidcasts and more. Competitive Advantages Several unique selling propositions (USP) 24 hrs availability of PTC planning Valet Service (pick up and drop of) Quick and precise communication with customers Pioneer gains High Tech image

37 Future Formation of the PTC Industry Formation Trends of Industry PTC Industry Will Develop Towards Larger, More Complex Companies Trends in Formation of Industry in % of answers 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 concentration size of units diverse processes increase same decrease Source: interviews

38 Types of Businesses Franchise (1) Franchise Chains and Concepts are Attractive for the Dry Cleaning Business Example: CITY SEC Spain Total units (nat./ worldwide): 121 Own business units (nat./ worldwide): 1 Franchise units (nat./ worldwide): 120 Total investment (nat..): 63,400 Personal capital: 20 Space needs: ~ 50 m² Location preference: Service areas Company foundation (nat./worldwide): 1995 Source: First franchising(nat./worldwide):1996/2000 Country of data: Spain New units last year: 8 Contract duration / Renewal period: 8 years Type of contract: Automatically renewable Initial entry fee: 2,000 Royalty: 0 Advertising fee: 0 Potential inhabitants: 6,000 Priority development: Spain

39 Types of Businesses Franchise (2) Franchise Services May Help in Many Areas Financial support Capital spending plan Sales and cost plan Liquidity plan Financial negotiations In-house leasing / Mediation In-house financing / Mediation Training Initial training (15 days) On-site visits Consultation by telephone Product knowledge Computer software Management Technical matters Source: Example: CITY SEC Spain Management support Site selection Site assessment Setup planning Detailed systems manual Local market studies / Local statistics Marketing concepts / Proposals Organisation / Administration Personnel advice Franchise advisory council

40 Thank You for Your Attention Contact: Dr. Geert Böttger