Alliance Laundry Systems (ALS), the world leader in manufacturing professional laundry equipment, has been growing rapidly in Thailand over the past few years. ALS has been adapting very well under urbanisation, changes in consumer lifestyles to prioritise convenience and the emergence of Covid-19 making people more hygiene-conscious.
Established in 1908, ALS has become the world leader in manufacturing professional laundry equipment. Today, the company sells industrial laundry equipment through over 1,000 distributors in more than 140 countries around the globe, including Thailand.
“Laundromats have become such a big part of people’s lives,” said Michael D Schoeb, CEO of Alliance Laundry Systems LLC in an exclusive interview with Bangkok Post on July 16, 2022 at Carlton Bangkok Hotel Sukhumvit. “People who live in cities increasingly prioritise convenience as they have limited time. Our machines can wash and dry large loads of clothes under just an hour.”
The over 100-year-old company entered the Thai market in 2017 with only six laundromats that bought its products. Later, the company made an aggressive push through adoption of “Event marketing” by organising “Alliance Wealth Investment” events which help expand its franchise offerings across the country with a focus on new investors. The events garner positive feedback from B2B customers nationwide. This brought the total of laundromats using the company’s products and services as of 2021 to 1,565. The total of ALS-equipped laundromats is expected to increase to 2,565 within 2022.
ALS has four main manufacturing and R&D facilities, in the US, Czech Republic, China and Thailand. In Thailand, it has spent over 1.5 billion baht building manufacturing and R&D facilities in WHA Chonburi Industrial Estate 2 (WHA CIE 2) to manufacture products and services that meet regional standards.
Currently, the company holds the largest laundromat market share in Thailand of almost 65% with four main brands, including Speed Queen, Huebsch, Ipso and Primus. Moreover, the company expects to see its market share rise to 80% by 2025.
In 2020, the company took in total revenue of 568 million baht and 965 million baht in 2021. It expects sales to reach 1 billion baht by the end of 2022. One factor behind the dramatic increase in the company’s revenue is a spike in demand due to the emergence of Covid-19 that makes people prioritise hygiene and changes consumer lifestyles.
Overall, the total number of laundromats in Thailand is projected to increase exponentially to 3,500 laundromats nationwide within 2022, up from 2,400 in 2021.
“Covid-19 has put hygiene in the spotlight and brings out the best in us,” said the CEO.
Total market value of the laundromat sector in Thailand in 2022 is expected to reach 10 billion baht, up from around 7 billion baht in 2021. ALS expects Thailand to have over 9,000 laundromats in the next 6-7 years.
“Focusing on one thing and having employees who have creativity and a sense of entrepreneurship is what makes the company stand out from its competitors,” said the CEO.
ALS also plans to expand its business in Indochina which has a total population of over 250 million people. “First movers in this business can take advantage of choosing good locations and gain competitive advantage over rivals,” mentioned the CEO.
To strengthen its potential, the company also aims to expand service centres into various regional areas.
“The format of laundromats is transitioning away from just being places to wash clothes to being lifestyle amenities equipped with TV, Wi-Fi, plugs to connect mobile devices for entertainment purposes and designated kid’s spaces for family customers,” said the CEO.
Payment methods will support touch screen with digital transactions options which will provide contactless alternatives such as Speed Queen Payment Centre and Mobile Banking, thereby providing better service experience.
“Modern consumers are increasingly paying attention to digital trends driven by internet penetration,” said the CEO. “We will keep in touch with the latest digital technology trends that can be adopted in the laundromat business, especially online ordering and scheduling and our laundry delivery service app.”
Meanwhile, the company is developing innovative product ranges, including the recent launch of ‘Tempest’ dryers with Inverter technology, making for smaller but more efficient monitors.
Asked how the company can maintain long-term relations with its partners while also seeking new ones, the CEO explained “Transparency, direct communication and open-minded conversation – the same keys that have cemented the company’s success for over 100 years and counting.”
