What can laundry companies do in response to the free suit dry cleaning marketing strategy?
Release Time:
2011-05-13 20:34
Source:
www.chinalaundry.cn
The competition in the clothing sales market is fierce, with promotions such as discounts and gift giveaways emerging one after another. Nowadays, a marketing strategy of buying a suit and getting free dry cleaning service has appeared. Is this marketing method a blessing or a concern for the dry cleaning industry?
Case:
The Xinur suit brand offers lifetime free dry cleaning for related clothing sold, using two methods: unified dry cleaning and subsidized dry cleaning fees (applicable to areas inconvenient for unified dry cleaning). Products eligible for free dry cleaning include all-wool and wool-blend suits, trousers, coats, casual wear, jackets, and trench coats.
Consumers who purchase this brand's clothing can send their dry-cleaning garments to the nearest directly-operated store or authorized franchise store, which is responsible for transporting the garments to the nearest dry cleaning center. In areas inconvenient for unified dry cleaning, local directly-operated stores or authorized franchisees organize dry cleaning at contracted dry cleaning shops according to regulations.
Their regulations on dry cleaning service fees are: the company bears the cost of unified dry cleaning; in areas inconvenient for unified dry cleaning, local authorized franchise stores provide free dry cleaning services to consumers according to the company's dry cleaning standards and cycle requirements, with the franchisee bearing the dry cleaning costs. However, Xinur offers corresponding discounts and rebates based on the franchisee's sales volume: a discount or rebate of RMB 20,000 is given if annual sales exceed RMB 500,000; if sales are below RMB 500,000, a 4% discount or rebate based on sales is given; after three years, 2% of sales is provided as dry cleaning cost support, up to a maximum of RMB 20,000. Franchisees must ensure the quality of free dry cleaning services meets requirements.
Cost estimation:
Let's analyze the free dry cleaning strategy: first, the discounted price for dry cleaning a suit at a laundry is about 18 yuan. The wearing time for a suit in one year does not exceed 120 days. The time from sending a suit for dry cleaning to wearing it again is about 15 days, so the actual wearing time for such a suit is 100 days.
If dry cleaning is done 4 times, 60 days cannot be worn due to dry cleaning time, so the number of dry cleanings will be less than 5 times; more than that and the suit won't be worn. According to surveys, buying such a suit in county-level cities is already quite good. They wear it on important occasions and are very careful, dry cleaning only twice a year.
Calculated this way, the annual cost is 36 yuan, and the total washing cost over 10 years is 360 yuan. Xinur suits are not discounted, so the 10-year washing fee totals 360 yuan. Taking a 1,000 yuan suit over 10 years as an example, this is equivalent to a 36% discount. This discount is similar to the operating discounts of other brands, but this service is attractive to consumers, especially the phrase "lifetime free" dry cleaning, which has a huge psychological appeal to consumers. Consumers calculate this benefit, and merchants, leveraging their washing volume advantage, can also get more favorable washing prices from laundries. The result is a win-win for everyone.
Comment:
Free dry cleaning of clothing is a marketing model for brand merchants, and it is not necessarily a bad thing for the laundry and dyeing industry. Relying solely on merchants to provide free washing is unrealistic. This will inevitably lead to cooperation between clothing stores and dry cleaning shops. Such stable washing consumption is beneficial to the operation of laundries.
When merchants participate in free washing, they must consider the washability of clothing when designing garments. A common problem in the washing industry is that due to the rapid changes in clothing fabrics and designs, some garments pursue design effects but neglect the scientific matching of fabrics and accessories. For example, some fabrics are suitable for water washing, but accessories can only be dry cleaned, increasing washing difficulty and affecting washing results. This method also helps merchants improve their judgment of clothing washing performance when designing garments.
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