Challenges and Opportunities in the Vietnamese Laundry Business: Wash Friends’ Experience

Hello, this is Wash Friends! Today, we would like to candidly discuss the difficulties and possibilities we have experienced while operating a laundry business in Vietnam. We entered Vietnam based on our experience running unmanned laundry rooms in Korea, but the challenges and opportunities here were quite different from what we expected. Through this article, we hope to explore the reality and future of the laundry business in Vietnam together.

Wash Friends, Smart City Imperia I2 Hanoi

Challenges in the Vietnamese Laundry Business

When starting the laundry business in Vietnam, the first issue we encountered was technical. However, as we operated, we realized that the bigger challenges stemmed from service operations and employee management. Below, we summarize the main difficulties.

1. Initial Anxiety About Laundry Technology

In the early stages of the business, our greatest fear was laundry technology. Damaging clothes due to incorrect washing methods could lead to compensation costs exceeding service fees. Our experience with unmanned laundry rooms in Korea was insufficient, so we invested significant effort in training and gathering information to develop technical skills suited to Vietnam’s local conditions. Fortunately, through hands-on service experience, we overcame these technical challenges.

2. Uncertainty in Delivery and Pickup Services

The delivery and pickup services introduced for customer convenience were well-received but also caused considerable stress. Vietnam lacks a culture of strictly adhering to scheduled times, resulting in complaints due to delivery delays or poor communication with customers. For instance, Korean customers, who highly value punctuality, often filed claims when we failed to meet their expectations. To address this, we are developing an O2O (Online-to-Offline) platform, anticipating more accurate and efficient operations.

Early stage of business: Motorcycle delivery method

3. Loss of Laundry Items and Employee Mistakes

Since we offer full-service laundry rather than self-service in Vietnam, losing laundry items has been a major issue. Small items like underwear, socks, and shoe insoles frequently got mixed up or went missing, often due to employees’ lack of attention to detail. Handling customer complaints about these losses consumed significant time and energy. While we’ve worked on employee training and process improvements, this remains an ongoing challenge.

4. Difficulties in Employee Management

Vietnamese employees generally display a passive attitude and rarely take initiative to seek out tasks. Even with daily repetition of the same instructions, mistakes were common. Additionally, some departing employees leaked customer information or took technical know-how to competitors. For example, trained staff would leave for higher wages elsewhere or even replicate Wash Friends’ methods to open independent stores. This has posed a significant barrier to maintaining trust and continuity.

5. Omissions in Customer Service

Despite hiring staff fluent in Korean and English, customer service oversights were frequent. Employees hesitant to communicate with foreigners often ignored calls or messages, leading to customer dissatisfaction. We attempted to mitigate this through various channels (group chats, hotlines, etc.), but for a lasting solution, we are planning to implement an AI-based response system.

Regular store visits for continuous service provision

Opportunities in the Vietnamese Laundry Business

Despite numerous challenges, the Vietnamese laundry market holds significant potential as a niche market. The demand for premium laundry services, particularly from foreigners (including Koreans) and middle-to-upper-class customers, has provided a foundation for Wash Friends’ growth.

1. Blue Ocean of High-End Laundry Services

Most local laundry shops in Vietnam use household equipment, often compromising on hygiene and quality. Even those advertising dry cleaning frequently outsource or substitute with water washing, deterring foreigners and high-income customers. Wash Friends has tapped into this gap by introducing professional commercial equipment and offering differentiated services like dry cleaning, bedding and curtain washing, and clothing repairs. A clean store interior has further enhanced customer trust.

Provision of professional laundry equipment, specialized cleaning, and premium laundry services.

2. High Demand from the Korean Community

Vietnam hosts a large Korean population accustomed to premium laundry services. Disappointed with local options, many turned to Wash Friends, helping us secure an initial customer base. The growing number of customers entrusting us with expensive garments or specialized laundry needs has confirmed the potential for premium offerings.

3. Potential of the Hybrid Model

Wash Friends proposes a hybrid model combining premium laundry services with unmanned laundry rooms. During the day, the store owner provides high-end services directly, while after hours, customers can use self-service facilities. This approach could boost revenue by 10-18% and aligns with the gradual expansion of unmanned laundry services in Vietnam. We are also exploring a model linking laundry convenience stores (for pickup and delivery) with centralized factories.

Providing laundromat and franchise services through an in-house laundry facility.

4. Expansion to an O2O Platform

To address delivery/pickup issues and enhance customer service, we are investing in an O2O platform. This will enable adherence to reservation times, real-time communication, and chatbot-based responses, improving operational efficiency and customer satisfaction. Launching this platform with an established customer base should also stabilize our revenue structure.

Key to Success: Service Over Technology

The most significant lesson from our experience in Vietnam’s laundry business is that basic service quality outweighs advanced technology. Customers prioritize a stress-free experience over cutting-edge equipment. To meet this need, we must focus on improving the following:

• Compliance with Delivery and Pickup Times: Building trust by honoring commitments.
• Prompt Customer Service: Ensuring seamless communication without oversights.
• Prevention of Losses: Strengthening meticulous management and processes.
• Employee Management: Enhancing attitudes and accountability.

The company that resolves these issues will lead Vietnam’s laundry market. WashFriends is committed to tackling these challenges, aiming to sustain and grow its presence in the premium segment.

Conclusion

The laundry business in Vietnam is a market where challenges and opportunities coexist. Overcoming hurdles in employee management and service operations is essential, yet the demand for high-end laundry services and the potential of the hybrid model present significant prospects. WashFriends is dedicated to building customer trust by focusing on the fundamentals while preparing for the future with an O2O platform and innovative business models.