CASE STUDY

RIN
 RIN CASE STUDY

BRIEF IN ONE LINE:

Create a profitable laundry service business model for Rin.

BACKGROUND:
Laundry services or out-of-home laundry is a growing phenomenon
worldwide stemming from the consumer trends of increasing women in the
workforce, urbanization, digitisation, the advent of the millennials and the
move away from the ownership economy.
The last 2 - 3 years have seen a mushrooming of players in the laundry
service segment across the globe. In India, laundry services has been there
for ages in the form of neighbourhood dhobis or laundry-men as part of the
unorganised sector, which accounts for 97% of laundry services. An example
of such a business is the largest Dhobi Ghat in Mahalaxmi, Mumbai that still
makes 100cr a year.
The organised segment is currently only 3% of the total market but growing. The organised segment is further split into
institutional and retail or consumer focussed with several players operating within each. Institutional services cater
primarily to the hospitality and health-care players, while retail refers to the mushrooming laundry service players.

RECENT DEVELOPMENTS:
Lately we have also seen 20+ start-ups & approximately INR 200cr+ seed funding in India alone targeting the high-income
households. These start-ups are continuously evolving new business models in the services segment.
There are multiple business models with players operating on a combination of these models subject to costs:
Hub & Sploke model where franchisees have outlets that collect laundry
Hyper-local Laundrettes manned, usually catering to a residential society
On-Demand Services anytime, anywhere laundry pick-up and drop services
Online Aggregators that source service providers and organise logistics
The back-end of the models may be centralized or de-centralized with players either owning & investing in the laundry
facility or outsourcing the same.
While a number of laundry services providers have cropped up, we have seen many shut down as they struggle with
achieving positive unit economics because of labour-intense operations and high logistics cost due to pick-up and delivery.
Eg. Doormint and Tooler
Consumers have revealed that the triggers for opting for laundry services include:
Convenience
Time savings
Expectation of great cleaning
On the flip side, barriers to adoption among the higher middle-class include:
Easy access to domestic help
Washing machine ownership
Good water supply
The current cost of both washing and ironing per garment at home is ~Rs. 4.4 versus
lowest organised outsourced cost of ~Rs.12. The lower cost and the three barriers above
make it convenient and cost-effective to do laundry at home. Furthermore, there is a habit
barrier of having always done it like this.
 RIN CASE STUDY

Few triggers among the lower income group appear to be as follows:

1. Migrant populations:
Single men, who live in groups in cities, who have mainly moved to the city to earn more
money for themselves and to send back for their family back home. They usually work in blue-
collared jobs like a waiter in a restaurant, night duty watchman. Their accommodations are
overcrowded and they prefer to invest spare time working for extra money, rather than doing
laundry.
2. Hectic lifestyles and busier work lives:
With the increasing cost of living in cities and towns, women are increasingly joining the
workforce. They are taking up jobs such as: receptionist in a small clinic, making papad at
home, conducting tailoring class at home or even helping her husband in a hardware shop.
Though these jobs are largely informal, this trend implies that women now have less time for
household work and especially for time-consuming tasks like laundry.
3. Health issues:
Significant physical work in these jobs results in health issues related to back, shoulders,
joints and knees. Inadequate rest, stemming from the need for continued income and
inadequate medical attention turns these problems into chronic issues, which makes heavy
household chore like laundry a strenuous and painful task.
4. Water scarcity issues:
As groundwater sources deplete due to rising city population, slums and low income,
households are bearing the brunt of limited hours of water supply in a day. Cooking and
bathing will never be compromised upon, however on many occasions, doing laundry at home
is postponed or compromised.

OPPORTUNITY:
With the promising start of Suvidha Centre and the above emerging trends seen with the low to mid income groups, Rin
wants to evaluate business opportunity in laundry services.

ABOUT RIN AND THE PEOPLE WE SERVE:

Rin began its journey in 1969 in India. For decades, Rin has tried to be an ally in peoples journey to progress by inspiring
them to shine. Rin promises to make peoples clothes whiter and brighter, so that people can get the confidence to stride
ahead in their journey to progress.
The rise of the middle class is testimony to people who are determined to improve life for themselves and their families.
They are the progress seekers. They have a burning desire for social mobility, a fierce non-acceptance of the status quo.
They have the confidence and the determination to move ahead, to progress, to shine. Their appearance, and their clothes,
are critical in making them feel confident in helping them signal to themselves, and to the world, that they are ready for
anything. That there is no stopping them, as they dress to progress. Rin will endeavour to provide the inspiration and tools
that can give them the confidence to shine even more. For more details, please refer to rin.in

METHODOLOGY:
Complete understanding of insights of mid to low income consumers
Meeting existing entrepreneurs or people involved in laundry business
Understanding the elements of successful service businesses and elements which can help make positive unit
economies

DELIVERABLE:
1. Key Proposition: Defining the target audience, powerful insight, key differentiated proposition, delivery of a strong
campaign idea and low cost marketing plan across different touch points.
2. Profitable Business Model: Considering all the elements such as location, man-power, machines, water, electricity,
demand etc.