Companies in this industry repair machinery, equipment and other products for customers and provide personal and laundry services to customers. Major US service companies include Cintas, Jiffy Lube, Regis, Safelite, Service Corporation International, and Weight Watchers; leading companies outside of the US are Frisör Klier (Germany), Funespaña (Spain), and Indigo (formerly Vinci Park, France).
Worldwide, consumer services companies are looking toward emerging markets for growth. Urbanization in developing countries and demographic shifts are driving consumption growth. Three groups -- the retiring and elderly in developed countries, and the working-age populations in China and in North America will generate half of all global urban consumption growth between 2015 and 2030, according to the McKinsey Global Institute. Markets with growing middle classes such as China, Brazil, and India are considered good places for investment as are countries with aging populations, such as Japan.
The US consumer services industry includes about 445,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $360 billion.
Consumer income and demographics drive demand in the industry. The profitability of individual companies depends on favorable store location, customer service, and efficient operations. Large companies have economies of scale in purchasing and access to large groups of customers. Small companies can compete through convenient location and providing specialized services.
The US industry's repair and maintenance segment is highly fragmented: the 50 largest companies generate about 10% of the revenue. The personal and laundry services segment is fragmented: the 50 largest companies generate about 25% of the revenue.
Mobile technology and the rise of on-demand service providers are disrupting the consumer services industry. By connecting consumers to independent contractors via smartphones and apps, startup companies are bypassing traditional service providers by providing services including home pickup and delivery for laundry and dry cleaning, oil changes and car washes at customers' locations, and some pet services. Technological innovations, such as self-driving vehicles and ride sharing services, post a longer-term existential threat to parking lots and garages.
Products, Operations & Technology
Major services are car repair and maintenance (about 40% of industry revenue), hair care (about 18%), commercial and industrial machinery and equipment
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms