Professional Documents
Culture Documents
Bangalore for the gowing middle class and boom created by the IT industry – budding
Competition –
Very few players in the organised car wash market and there is no such loyalty that has
been created for them (Example – Express Car Wash, Speed Car Wash, Refreshed). None
of them provide fully automated car wash facility which is the USP of Sparkle & Shine.
There is high completion from the unorganised sector who provide cheaper service
It is very less since the capital and resource requirement is pretty high on account of
newer technology
Threat of substitution – there is a risk that people might not shift from manual cleaning
Another risk is in the form of players providing services at the doorstep using machines
The following points make India a conducive market for the purpose of
launching automated car wash services:
India has replaced Germany to become the 4th largest auto market in the
world growing at a rate of 9.5% last year.
The luxury car segment is growing at a rapid rate pushing up 21 spots in the
world ranking to reach the 27th position and is expected to grow at a CAGR
of more than 20% till 2023. The sales for last year turned out to be more
than 40000 units.
In addition to the rising GDP per capita and the growing upper middle class,
India has the world’s 12th largest High Net worth Individuals (HNI)
population.
Growing demand for organised car wash outlets as the existing car wash
outlets are not even able to serve 1% of the total cars running in the country.
The present car wash market is highly unorganised.
Commercial Services
Lock-in customer demand with bulk deals & long term
service contracts for cab aggregator companies
Retail Services
High End Services:
• The luxury car segment expected growth at CAGR of 25% •
Tie up with distributors of luxury cars to lock in long term
scheduled through the app, will be charged an extra Rs 300 for pickup, and the timing will be
- Vacuuming of car/seat/boot
- Washing of foot mats
- Tyres
- Upper body
- Perfume Spray
- Rs 400|500|550/- ( Cost
based/Competitor based pricing)
- Vacuuming of car/seat/boot
- Washing of foot mats
- Tyres
- Upper body
- Perfume Spray
- Dash board cleaning
- Wheel allignment
- Rs 1200|1400|1600/- ( Cost
- Services as gold
- Scratch resistant polish
- Underbody wash
- Body polishing and waxing
- Scratch proof windshielf polish
- Rs 1999|2200|2600/- ( Cost
based/Competitor based pricing)
based/Competitor based pricing)
Individual car owners treat vehicle with pride as it is the biggest investment after house.
Cab drivers & commercial users are more utilitarian in this approach. Hotel fleet require
regular maintenance to keep up with pomp. Overall, low awareness about car care .
Strong reliance on domestic labour for car washing. Professional wash only seen during
full range service. Full service, hence professional wash only conducted twice or thrice
a year. Car care increases with value of the vehicle.
Tie ups –
Liaison with
corporates
To tie-up with companies and provide corporate plans for car- cleaning
services
Hotels
The car wash industry is changing fast in India. In order for your car wash
business to succeed now and in the future, you have to understand just how
the industry is changing.
For businesses in the car wash industry, this will mean increased margins and
ultimately more profits.
After years of heavy increases in gas prices are plummeting to levels not seen
since the beginning of the century. In response, people are driving more often.
This means two things:
4. More Competition
The rapid growth of the car wash industry and the increased competitiveness
of smaller car washes are turning more than a few heads. Many new entrants
into the industry are starting new car washes. In order to stay ahead of this
competition, you must prepare for success.
How to
o Optimize your pricing strategy for all of your services
o Implement better training programs that allow your car wash
team to clean more effectively
o Prepare your car wash for rapid growth
What tools you need to ensure consistent efficiency year-round
Preparing for the Car Wash Industry Boom Starts Right Now
In order for your car wash to achieve maximum success, you need to use the
best technology and business plan possible. SPEED CAR WASH has
assisted new car wash business owners to enter the market and become
successful while providing the same quality products and services to current
car wash businesses who want to remain competitive.
International Perspective
The aftermarket auto segment on the international front
that has been moving in parallel with the auto industry, is
looking at alternate markets, as many of the European
markets is fast shrinking.
Speaking to international car wash industry players in
Italy – the manufacturers and service providers – it is felt
that the European market, flushed with car wash facilities,
has almost saturated and the scope for newer
opportunities are limited. Apart from Russia and Eastern
Europe, Africa and other far-east countries, the
manufacturers are upbeat about the Middle East and
Indian markets.
“Looking at the economic conditions, especially in Italy,
we are trying to export as much as possible since last year,”
says Andrea Bianco, Export Manager-Aquarama, Italy.
“We have experienced very good response in exhibitions
and are looking forward to participate in expos in Dubai
and India. The Middle-east, Saudi Arabia and Oman
markets are very interesting. In fact, in Dubai we have
established good contacts and are in the process of
installing our machine in a new project. We have lined up
several projects for this year which are at the concluding
stages. This includes India too. As soon as we complete the
Dubai project, we will be focussing on India.
“Unlike the Russian and European markets, the approach
of the user is different in the ME and Indian markets. For
example, take the use of brushes. While brushes are an
inherent part of car care, in Russia and ME customers are
uncomfortable and fear that brushes can leave scratches.
Hence, we had to adapt to the needs of the customer and
have customized car wash with high pressure cleaning
facility. So we have our portal gantry without brushes and
just high pressure and water,” Andrea adds.
“It is not just the approach or attitudes, even the decision
making process in India is much slow,” adds Erico, Hawk.
For eight years, it was known to car dealerships and service centres as a
provider of car detailing products. These include polishes, cleaners, wash
shampoos, rubbing compounds, dressers and many others.
According to Gadgil, all major OEMs source their car care products from 3M
Car Care, hence defining a wide array of customers across the country for this
Bangalore-based firm. The company is an independent arm of 3M India, a
subsidiary of the Minnesota-based 3M Corporation, a $ 30 billion company
with operations in over 70 countries.
Car detailing covers two aspects – interior enrichment and surface refinement
– for new and old cars. “At our outlets, our services for a new car (0-3 months
of purchase date) include anti-corrosion treatments with multiple warranties
(underbody and other areas), paint protection treatments (launched a year
ago) and others for the exterior side. Interior enrichment includes
programmes for germ clean treatment (also recently launched) and many
others, for older cars (older than three months of purchase), surface
refinement treatments and other similar services,” he elaborates.
The facilities provided at 3M’s service outlets primarily differ from an OEM-
specific service centre. The focus is on appearance and hygiene (such as car AC
cleaning treatments) of a car. “The profile of customers driving into our
standalone outlets varies from small car owners to luxury cars. A true car
enthusiast understands the worth of his vehicle and he is our target. This
trend will only grow given the fact that we are working on innovative services
and programmes,” adds Gadgil.
The company, which follows the calendar year, plans to open 15-20 new
standalone outlets in 2014. It hopes to have a footprint in around 200 new car
dealerships as well. Going forward, 3M Car Care plans to have a total of 80-
100 standalone outlets and also be visible through 1,700 car dealerships in the
organised sector over a three-year period.
“While the business coming from the OEM-specific car service centres is
bigger than the business coming from standalone outlets currently, we are
absolutely bullish about this space to grow in future. The market potential can
be estimated from the fact that only 10 percent of all cars at car service centres
opt for car detailing jobs,” concludes Gadgil.
Gadgil estimates the annual market size of car detailing at around Rs 375
crore. 3M Car Care claims a 50 percent share and hopes to grow by 25-30
percent year-on-year. The unorganised market is the single largest competitor
for 3M Car Care in India. It is, therefore, a challenge for an organised player
like 3M Car Care to break into such territory.
3M Care Care also provides similar products for two-wheelers but the
numbers are small. Operating on the same format as cars, two-wheeler OEMs
such as Suzuki Motorcycle India, India Yamaha Motor, Bajaj Auto and others
source 3M products for dealerships and service centres. Nevertheless, none of
the existing 3M’s own outlets service two-wheelers currently as the company
fears the dilution of car-specific service provider’s image in the market. But
Gadgil says the two-wheeler space is also set to grow in this niche area.
Setting up an independent outlet, says Gadgil, can cost between Rs 50 lakh-Rs
1 crore (including the deposit for rent depending on the location). Another
substantial investment is manpower training, he adds. 3M Car Care which has
29 standalone outlets operates through a direct team of 90 people and indirect
chain of 7,000-8,000 people (employed by the 3M’s franchises and OEM
distributors across India). The top team comprises six product developers,
four technical service engineers and seven regional technical traders.
A conventional method would involve a high-pressure wash which not only takes a
considerable time to clean, but also involves wastage of a lot of water. Since salt
water or non-edible water would reduce the life of the paintwork on a vehicle, dealers
have to resort to ground water in order to wash the car thoroughly. Maruti Suzuki
India Ltd, however, is now moving from the conventional method to a new ‘Dry Wash
System’. Not only the wash time for workers has reduced to 20 minutes from
approximately 45 minutes on each vehicle, the new method has saved around 216
million litres of water every year. The system is available in 1,130 workshops and
nearly 2.28 million vehicles were cleaned using this system in the 2016-17 fiscal
year. This is three times the increase of the cars cleaned using this method in the
2015-16 timeline.
The Dry Wash System involves using comparatively lesser quantity of water without
compromising on the quality of cleaning. The entire kit consists of a dry foam polish,
micro fibre cloths, wipers and towel hand gloves. The process starts off with dusting
off the car with excess dirt or dust after which the car is sprayed with the dry foam
wash. This is the only place where the cleaning process involves water which is
minimal. To put it in perspective, if the conventional process involves 20 litres of
water, this system involves barely 500ml. Once the foam is sprayed, it is allowed to
settle and then spread across the entire exterior of the car using the hand towels
The next process involves cleaning the
body of the car with a micro fibre cloth, however, before the cleaning starts,
windows, rear glass and the windshield are cleaned using wipers, after which the
entire car is cleaned using the microfibre cloths. The time taken for the entire system
is approximately 20 minutes which is considerably lesser than the conventional
method since it needs a lot of water which needs to be dried up more than once,
even using a micro fibre cloth. Here this sweep has to be done once, or at most,
twice.
The system isn’t a completely waterless one, however, the amount of water saved is
not just considerable, but, substantial. Not only does it reduce the amount of
operation costs at a dealership, it also reduces the water consumption involved in
cleaning a vehicle.
With Maruti Suzuki’s initiative across a number of workshops, the company not just
plans to have a cost-effective method for workshops, but also, make this entire
process more environment-friendly. At this World Environment Day, the company
has started what would be a small initiative to save water but it is a positive
commitment which would go a long way in conserving natural resources and the
environment.
Why choose Sparkle & Shine?
• SUPREME
• - Complete vacuuming of cars incl. seats and boot - Washing and cleaning of foot
mats
• - Body Shampooing and washing including door frames
• -Tyre arches cleaning
• - Underbody wash - Engine hot water wash and dressing - Side doors cleaning
Dash board cleaning and polishing
• - Tires and alloy wheels treatment
• - Car perfume spray (Rs. 450 per wash)
• PREMIUM
• Complete vacuuming of cars incl. seats and boot -Washing and cleaning of foot
mats
• -Body Shampooing and washing including door frames
• -Tyre arches cleaning -Underbody wash + Engine hot water wash and dressing
• -Side doors cleaning
• -Dash board polishing & Car perfume spray
• (Rs. 300 per wash)
• BASIC
• Only water wash
• Rs. 100 per wash
• Foam plus water wash
• (Rs. 150 per wash)
High capital investment would be required for opening up outlets or stations on our own
Time taken to break even would be much lesser than compared to owning outlets
Franchisee model would help in rapid expansion along with providing a stable source of
revenue through royalties
The location for the integrated centre would be chosen based on the following parameters –
Kind of locality, number of cars in the locality, average per capita income, proximity to offices,
shopping malls etc.