Consumer Services
Companies in this industry repair machinery, equipment and other products; as well as provide personal and laundry services to customers. Major US service companies include Cintas, Jiffy Lube, Regis Corporation, Safelite, Service Corporation International, and WW International; leading companies outside of the US are Funespaña (Spain), Indigo Group (France), and Klier Hair Group (Germany).
Worldwide, consumer services companies are looking toward emerging markets for growth. Urbanization in developing countries and demographic shifts are driving consumption growth. The share of the world's population living in cities is expected to rise to 80% by 2050, from 55% now. The material consumption is expected to grow from 41.1 billion tonnes in 2010 to 88.8 billion in 2050, according to World Economic Forum.
The US consumer services industry includes about 455,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $300 billion.
Competitive Landscape
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 15% 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 39% of industry revenue), personal care (about 14%), commercial and industrial machinery and equipment
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