Email
Password
Remember meForgot password?
Log in with Facebook Log in with Twitter
Connect your Digital Journal account with Facebook or Twitter to use this feature.
Press Release

Car Wash and Detailing Services in Australia Industry Market Research Report Now Available from IBISWorld

>PRWEB.COM Newswire

Melbourne, Australia (PRWEB) March 13, 2013

The Car Wash and Detailing Services industry has managed to stay afloat despite being faced with significant challenges over the past five years. Despite a poor economic environment typified by falling discretionary spending, changing social and environmental mores have boded well for the industry as busier lifestyles and stricter regulations around water use have resulted in growing demand for car washing and detailing. Strong growth in the number of motor vehicles has also benefited the industry, as there is a greater need for car washing and detailing services. Extreme weather events such as droughts have imposed water restrictions and made consumers more environmentally aware about the pollutants in stormwater drains. Commercial car washes have thus marketed themselves as environmentally friendly, using special high-pressure hoses with small jets that require less water and recycling most of their water. According to IBISWorld industry analyst Naren Sivasailam, “the depths of the financial crisis coincided with the worst of the drought, which helped the industry grow during an otherwise vulnerable economic period”. In the five years through 2012-13, industry revenue is expected to increase by 1.9% per annum to total $505.4 million.

The industry has a low level of concentration, as there is just one major player: Magic Hand Car Wash Franchisor Pty Ltd. The highly fragmented nature of the industry can be explained by the relatively low barriers to entry and the industry's highly competitive nature. A large number of car wash establishments are run as family businesses. Some operators own more than one car wash establishment, typically all held in a certain state, territory or geographic region. “While there are limited economies of scale to be gained from owning and operating more than one car wash, knowledge of the industry can assist with opening additional locations,” says Sivasailam.

The prospects of the Car Wash and Detailing Services industry are contingent on trends in car ownership and the continued emphasis on environmental factors, such as waste effluent and water saving. While spending on car washing and detailing does represent a discretionary expense, the levels of discretionary spending will affect what types of services are demanded. Households in the highest income quintile account for 35.5% of revenue and are most likely to purchase the entire suite of premium washing and detailing services. Strong income growth is forecast for the next years, along with an increase in the number of car washes offering premium services such as attached cafes and restaurants or mobile and home delivery services. On the downside, the number of new cars on the road will likely plateau over the next decade, as the move toward urbanisation and high-density living reduces automotive dependency among the population.

For more information, visit IBISWorld’s Car Wash and Detailing Services report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld Industry Report Key Topics

This industry consists of operators that primarily wash, wax and detail automotive vehicles, including passenger cars, trucks, vans and trailers. This industry excludes companies that predominantly provide automotive repair and maintenance services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Read the full story at http://www.prweb.com/releases/2013/3/prweb10520943.htm

Corporate

Help & Support

News Links

copyright © 2014 digitaljournal.com   |   powered by dell servers