Laundry network of P&G studies global expansion

The network of dry-cleaners Tide, which bears the name of detergent sold by Procter Gamble (P&G) & for 70 years, intends to start the studies for the international expansion of their franchises when it reaches the mark of 50 stores in the United States. Thomas Flaherty, President of Agile, P&G subsidiary created to take care of franchises, estimates that in two or three years the Tide will be operating in other countries, including Brazil.
In 2008, the P&G initiated a pilot project in Kansas City and opened three Tide-branded dry cleaners. After you fine-tune the concept, the franking started in 2010 and the company expanded its presence to the other American States.
The network now has 42 stores in 17 States and when you reach the 50 mark shops will begin the research on the internationalization, said Flaherty to the value "we have 42 locations, so we''re pretty close to it. We''re starting to think about international, but has not yet determined which countries we will. We want to make sure we have the right system before, "he said.
Flaherty, who traveled by many countries in their 12 years taking care of the relief of the network of pizzerias Papa John''s, says he is excited about the idea of internationalisation. "Frankly, we have people from all over the world interested in years in the business, such as Brazil, China, Dubai, Canada and United Kingdom." He came to Brazil to present a Panel on Latam Retail Show, which takes place this week in Sao Paulo.
The Executive was hired by Agile when the subsidiary was created by P & G in 2010. With his team, brought new technologies and services to differentiate the concepts in relation to traditional laundromats. The Tide Dry Cleaners service 24 hours, with "drive thru" and cabins for the pickup and delivery of clothes after business hours. The company uses a green technology that replaces the perchloroethylene, a colorless liquid for dry cleaning associated with diseases such as cancer.
Part of the stores in the United States adopted an application for on-demand services, a kind of Uber for clothes washing. "The technology is a very important factor. With the advent of services like Uber and the AirBnb, we must reflect on the effects of that in our business, "said Flaherty.
The application is in its early stages. "The good news is that it''s just a matter of scale," he said.
The P&G is in a market without strong national competition. Although some networks, such as the Martinizing works, owner of more than 400 global shops have created strong brands, is a fragmented segment, dominated by family businesses.
"We have seen some competitors grow and start expanding to other markets, but we also got the contact of people interested in turning their shops in Tide Dry Cleaners franchises," said Flaherty. The market of dry-cleaners in United States is worth $ 9 billion.
"A lot of people ask us: why a P&G franchise seems unusual, since the business core is in consumer products. Many people say that the company is moving away from what you know how to do well, to bring strong brands on the shelves, but this is a natural extension for the Tide and P&G. And it''s also a great way to have more knowledge about the consumer of Tide in the United States, "said the CEO.
The Tide Dry Cleaners had revenues of $ 30,000,000 in 2015. Is a small portion of the $ 76 billion in global business. But with dozens of brands of the P&G potential is interesting. In addition to the dry-cleaners Tide, and of Mr. Clean car washes, the Gillette brand could appoint a network of Barber shops, or the Pampers could refer to care stores with babies, exemplifies.
The main reason for the success of the relief is in the name. "People love consistency, even if you don''t like the quality," he said. "McDonald''s, for example, may not be the best quality on the market, but the consumer knows exactly what he will get. The same goes for the franchising market. "
Of the 42 stores, 9 belong to P & G and 33 are franchisees. If, on the one hand, the Tide gives an instantly known franchise, on the other hand, the product''s reputation is at stake. "We have to make sure we treat well the customer, that we will make it back."
Even after more than 70 years of changes and new versions, Tide has more than 40% market share in the United States. In Brazil, the brand is sold only by import. Ariel is the main detergent for clothes sold by P & G in the country and responsible for the third largest share market, behind Omo and Ypê, according to Euromonitor.