Growth And Decline Of The Carwash Market In Australia †Free Samples

Question: Discuss about the Growth And Decline Of The Carwash Market In Australia. Answer: Introduction With the ramified economic changes and complex business structure each and very organization is running its business effectively. This report reflects the key understanding of the carwash industry in determined approach. The report outlooks the carwash industry into consideration and evaluates the growth and decline of the carwash market in Australia. In the end of the report, market growth rate, market share and competition in detailing/ carwash industry has been evaluated. Outlook of detailing/ carwash industry It is evaluated that operators in the Car Wash and companies running its business in auto detailing/ carwash industry have observed steady growth in their sales overall the last five years. However, there is seen high inclination of car selling companies to enter the industry. This industry has been gaining momentum because of the downfall of oil price of the last five years. It is evaluated that due to the downfall in the diesel and petrol prices, sell of the cars has increased (Janik and Kupiec, 2007). Eventually, it will also increase the business and the growth of the industry is also indicated. It is evaluated that industry revenue will also be bolstered by rising per capital disposable income that will increase the consumers propensity to make expenses on discretionary services such as car handling, adding other features and car washes program. With the increasing sales of car in Australia, companies indulged in selling car also including another features of washing cars in mar ket. This will not only increase the overall turnover but also increase the clients satisfaction. In Australia, clients are more inclined towards best quality of services. Therefore, car selling stores and other branding car companies such as Volkswagen and BMW have opened their car stores for providing services like services such as car handling, adding other features and car washes program. This will also increase the overall brand image and market share of the organization. These levels of services offered by organization are also undertaken as anothermarketing strategy to promote their car products sell in market (Burns, Kinkade and Bachmann, 2012). Market growth rate of detailing/ carwash industry With the increasing ramified changes and increase in car sales business more than 2,500 commercial carwashes companies are increasing their overall turnover by average rate of 14% since last five years as per theAustralian Car Wash Association (ACWA). In addition to this, IBIS world has reported that Australian industry has forecasted the overall revenue earned by detailing/ carwash industry would be approximately $585 million by 2020 (Gennett, 2010). This market growth is increasing throughout the time which attracts lot of organizations to run their business in this filed. It is evaluated that due to decrease in cost of the price of company, selling of cars in Australia has also increased the overall sales of company. It is observed that in 2013 sales of the cars in Australia was AUD $ 26.77 billion which increase to AUD $ 32.56 billion. Eventually, it will also increase the overall revenue of detailing/ carwash industry. After evaluating the all the data and information in these business, sales or turnover of the revenue of detailing/ carwash industry has been increasing by 40% since last three years. This above graph has shown that gross margin of company has also increased by 35% since last three years. On the other hand, net profit earned by these car washing companies has also increased by average 22% since last three years. This has shown that revenue of the industry is gaining momentum throughout the time and companies engaged in this industry has been earning high amount of profit throughout the time. However, the long term forecast is also positive which could be evaluated by following the past five years data. It is simple to identify that growth rate of the industry will increase with the sales of cars in market. In Australia, sales of cars will increase by at least 28% by 2025 which will eventually increase the demand of car washing services (Genuino, et al 2012). Companies indulged in detailing/ carwash industry With the increasing growth of this carwash industry, there are several companies who are earning high amount of profit in detailing/ carwash industry such as Wash tech, A1 Detailing, AAA Dings dents/ Ding King and Abba dealing. Auto tech is one of the leading companies in Australia which has shown high increase its overall turnover. Moreover, Wash tech has increased its overall turnover by 22% since last five years by including carwash services in its bucket. Albany car Boat Wash has also covered at least 8% market share of Australia by selling its carwash services to the clients in Australia. This level of business functioning and effective management of opportunity available in carwash industry should be used by these car washing companies to increase its overall sales and revenue of companies (Janik and Kupiec, 2007). Conclusion It has observed that running of business in effective manner requires adoption of innovative and creative technologies. Thus, it could be inferred that due to the downfall in the diesel and petrol prices, selling of the cars has increased and eventually turnover of the carwash industry will increase in the same direction. This report has shown the key understanding on the market growth of the car wash industry. This market has gained momentum throughout the time. However, various other industry players are diversifying their business in this market with a view to earn high growth in this filed. Now in the end, it would be inferred that if company wants to earn high amount of profit in this filed then it will have to provide best quality of services in this car wash industry. References Burns, R., Kinkade, P. and Bachmann, M., 2012. Getting hosed: Petty theft in the car wash industry and the fifth suitability criterion in routine activities theory.The Social Science Journal,49(3), pp.263-269. Gennett, Z.A., 2010.Shortfall online: The development of an educational computer game for teaching sustainable engineering to millennial generation students(Doctoral dissertation, Northeastern University).marketing Genuino, H.C., Opembe, N.N., Njagi, E.C., McClain, S. and Suib, S.L., 2012. A review of hydrofluoric acid and its use in the car wash industry.Journal of Industrial and Engineering Chemistry,18(5), pp.1529-1539. Janik, H. and Kupiec, A., 2007. Trends in Modern Car Washing.Polish Journal of Environmental Studies,16(6).