The car market is witnessing an upswing throughout the Middle East driving the demand for car care and maintenance facilities including car wash systems. There is an ample scope for the car care franchisees to grow in the region. Read on.
All the sectors including automobile are positively trending towards increased consumption and upsurge in sales in the Middle East. In fact, car sales in the Middle East region have not been much impacted by the global economy going for a toss. The experts believe that the growth momentum of the car consumer market will continue to be positive for the coming years. Therefore, surge in car sales has led to the increased demand for car care and maintenance facilities.
Growth factors
The region has recorded sales not only for cars but also for passenger vehicles, crossovers, sport utility vehicles and pick-up trucks. The people in the Gulf are fond of cars and also readily spend on upkeep of their vehicles. Car owners whether having luxury cars or mid segment cars want to ensure the safety, drivability, comfort and longevity of the car. Therefore, they seek facilities and centres that can help them maintain their automobiles. Also, locals due to their busy life style and increased disposable incomes can afford to spend on such services.
Emerging trend
Traditionally hydrofluoric acid a hazardous chemical was used for cleaning cars. This called for employing safer cleaning solutions and several new car wash systems such as; Hand car wash where car wash is done by employees, In-bay automatics facility at filling stations and stand-alone wash sites etc were developed. Further, due to water scarcity in many countries in the region and enhanced awareness for protecting precious environmental resources, a new trend of car wash systems called chemical car wash is emerging. Also known as eco-friendly waterless car wash, such services are now being offered to the car owners in the Middle East.
Players in the market
Currently there are few players in the Middle East that are providing waterless car wash facilities based on technology that offers premium car wash/detailing services; and also helping the cause of environment protection. Prominent brands that have marked presence in the region’s car care market and have launched their environment friendly concepts are Nanotek (Australia), Keenwash (Jordan) and Geowash (Australia) and UAE based Emirates National Oil Company (ENOC). As Jim Cornish CEO, Nanotek shares, “In terms of the Middle East, there were obviously some immediate synergies in terms of water scarcity and ‘car culture’. We were approached by a number of companies seeking to introduce the service to the Middle East – we conducted a series of meetings in the region and selected a Saudi Arabian company (Al Arfaj and Brothers Holding Company) as our JV partner. From our base in Dammam, KSA, we manage expansion within the region. ‘Nanotek’ is an exciting new brand which focuses on our exclusive liquid polymer nanotechology and the quality of our service.
Dr Nader Atmeh, Founder & CEO, Keenwash comments, “We at Keenwash has introduced the Keenwash shop and wash concept at shopping centres in the capital city Amman. Shopping mall customers in Jordan can now have their cars washed while they shop. Our Keenwash Mobile Cars zip off to perform on location waterless car washes according to bookings made by phone and the Keenwash website. Finally, Keenwash offers bulk washing services for company fleets, with clients ranging from Mercedes car dealership to the American embassy.
Opportunity
Several brands have opted for franchise model to gear their expansion and growth in the Middle East region. Keenwash operates brand’s shop and wash concept at shopping centres in the capital city Amman in Jordan according to bookings made by phone and the Keenwash website. Also, it offers bulk washing services for company fleets, with clients ranging from Mercedes car dealership to the American embassy. Giving an insight into the franchise expansion plans of Keenwash Atmeh informs: “Currently, we have franchisees in the Kingdom of Saudi Arabia, Bahrain, Oman, Kuwait, Palestine and we are in negotiations with Lebanon, Qatar, Egypt, Switzerland and the United States of America. Keenwash is now a registered trademark in most of the Middle East and North Africa (MENA) region.”
Geowash has also marked its footprint in the Gulf through its franchised facilities in Jordan, and master franchisee in United Arab Emirates.
Nanotek currently has franchisees in Saudi Arabia, Bahrain, Kuwait and it will be soon launch in Qatar including approximately 40 outlets in the form of both mobile units and fixed locations. Cornish also shares further expansion plans for Nanotek in the Middle East. He says, “The potential of the Middle East market is enormous and we have big plans over the next few years. We have specifically developed a fixed site model for the Middle East with sites launching in multiple locations in Saudi Arabia (including our Flagship outlet in Dammam). So short term plans are to solidify our current markets and introduce our new brand ‘Nanotek’ in both mobile and fixed site form, while in the medium term introducing our system into other countries in the region.”
Challenges
As there are many opportunities for the eco friendly car wash systems the concept like every other business is marked by a few challenges. Apart from creating more awareness about the concept among customers, these companies will have to compete with the unorganised players and prevalent systems that still have a large share of car wash market. Also they require providing optimum services at affordable costs to enhance their client base in the region.
Conclusion
To conclude, it can be said that there is ample need gap between the demand and the supply of eco friendly car wash services in the Middle East. The car wash brands can hugely benefit from the scope of such facilities as players are few and market is big to accommodate more such concepts. Also, the potential of the emerging Middle East market is yet to be realised by the potential franchisees wanting to own the trendy ‘Car Wash Business.’
