survive as the bombs fall
…but somehow Ukraine has dug in and the industry is surviving
M
eanwhile, in Ukraine, laundry and drycleaning businesses continue to develop despite the ongoing war with Russia and the overall tough business environment in the country. Even though the war has resulted in the loss of up to 20% of territory by Ukraine and massive migration of citizens from 40-million people Ukraine, that has not led to the catastrophic effect to the industry, which development is ongoing with generally positive dynamics in the largest cities of the country among which are Kiev, Kharkiv, Dnepr, Lviv and some others. Prior to February 24 2022 textile care was one of the most developed segments across the entire Ukrainian consumer services sector (with annual growth rates of up to 10% and big potential for growth). However, the situation has changed. The beginning of the war led to a significant slow down in the opening of new industry facilities, the number of which was generally low even prior to the war. According to data provided by the Ukranian Agency of Strategic Researches – the Ukranian research agency - there is only one drycleaner and laundry per approximately 15,000 people in big cities, and for 45,000- 50,000 people in the case of small, provincial towns. That means that Ukraine significantly lags behind most European states in terms of the number of facilities. The ongoing war also complicates opening of new laundries and drycleaners. This is mainly due to the risk of attacks and the generally low profitability of such business.
Moreover, the current complex business environment in the country these days also prevents local business from opening laundries and drycleaners in the local market. As the economic situation in the country remains tough, most local banks refuse to provide loans for the launch and development of laundry and drycleaning business in Ukraine.
One of the most negative consequences of the war for the industry is the exodus of many foreign players, which led to suspension of supplies of important industry equipment and various products. While in 2024 the situation generally stabilised, the industry still experiences a shortage of modern equipment and expendable materials.
Due to the rapid growth of inflation, the decline in the purchasing power of the population and the rise in the cost of services, the demand for laundry and drycleaning services in Ukraine remains relatively low these days, as local people are increasingly saving on the services of laundries and dry cleaners, preferring to take care of their things themselves. If in the Ukranian capital – Kiev – the demand remains relatively stable due to the increase in the number of visitors from other regions and the generally high level of business activity, the same can not be said for other regions.
At the same time, the decline of demand was even higher as many businesses now shun using drycleaning services due to cost issues. Many of them prefer to
spend money on the purchase of their own equipment and installation of their own mini-laundries rather than paying contractors to service their textiles. The lack of new shopping centres, which provide space for laundry and drycleaning points also negatively affects the industry. In an attempt to attract additional customers, both laundries and especially drycleaners are increasingly diversifying their range of services. Today, it is not limited to just washing, cleaning clothes and removing stains – many local players offer customers ironing services, clothing and shoe repairs, along with storing fur products and even treating items with silver nanoparticles to prolong the cleanliness of products and protect them from pathogenic microbes and viruses. And, some companies have even begun to provide cleaning services along with ‘home handyman’ services to perform minor repairs in the apartment.
As the war with Russia carries on, the provision of services for the needs of the military is considered one option for many local businesses to stay afloat. Due to the current number of troops in the Ukranian army, the demand for laundry and drycleaning services from the military remains high.
Despite the fact that as a result of hostilities, a significant part of industry facilities in industrially developed Eastern Ukraine are currently under the control of Russia, that has not led to massive decline in the number of industry enterprises. At present the industry consists of about 300-350 enterprises of various sizes, which employ about 3,000 people.
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