Over the last few years, much of South America has been trying to keep its head above water as it weathers the global recession — but not Colombia. The South American country about the size of Texas and California combined has not only survived the recession but has grown 4 to 6 percent each year since 2010. This steady growth has lead to more cars on the road. In fact, in 2011 the multinational Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) reported that car sales in the country had risen by 36 percent in 2011. And with the rise of these new cars came the rise of a car wash industry.
In Colombia, the industry is divided between gas stations, informal street car wash operations and a few independent operators. The two largest independent operators are the international company ProntoWash, with 38 locations in Colombia, and Mr. Splash, which has grown from 20 to 40 locations in just five years. Mr. Splash President Jorge Jassir explains that most of the cars in Colombia are new cars. “The oldest ones are only 10 years old, but in the past, most of them [cars on the road] were old. Only 20 percent were new,” said Jassir. “The car industry in Colombia has grown a lot. People have become interested in keeping their new cars clean.”
While these numbers surely indicate a growing industry, it’s important to remember that Colombia’s industry is still in the early stages of development. The BBVA reported that in 2011 only 80 out of every 1,000 Colombians owned cars. This is quite small compared to car ownership in the U.S. where approximately 800 people out of every 1,000 own cars.
WASHING BY HAND — AN INDUSTRY’S FOUNDATION
In Colombia, those who wash their cars, wash them frequently — from one to two times a week. Mr. Splash alone washes an estimated 60,000 cars a month. One explanation for this high wash frequency is that a clean car has become a status symbol. “People here are trying to maintain a good image, and that image extends to their car. It’s a way of presenting themselves,” said Jassir.
Another reason is that the service is cheap. Prices are often twice as high in U.S. locations for similar services.
In addition to cost, another difference between the two industries is the absence of tunnels in Colombia. Jassir estimates that there are approximately 200 Colombian car washes, very few of which are tunnels. The tunnels that do exist can only be found at gas stations, such as BP, Esso and Petrobras. Overall, the country’s industry is dominated by hand wash operations, and Jassir said the most popular wash is the interior/exterior detailing. This is partially because the technology for tunnels just hasn’t made its way to the country yet, but it is also because Colombia has a tradition of buying handcrafted products.
“In Columbia, handmade works are very popular, so we are used to the idea of detailing,” Jassir said. “People are willing to pay for it here. It’s very common for people to spend more for the car wash in which the carpet and the leather is cleaned, and the car is polished.”
Overall, though, Jassir (who also operates Mr. Splash washes in the United States) sees very few differences between Columbia and the U.S. in terms of the wash experience his company provides. “The industry in both places operates very similarly. The only difference is that in the U.S., there are more luxury cars, and that’s a different type of customer service than our system over here in Colombia,” he said. “Still, because hand washes are so common here, Colombians expect a lot. We have to have very high standards for washes.”
ENVIRONMENTAL REGULATIONS
Detailing is not the only type of wash popular in Colombia: The ecological wash is also becoming a consumer trend. The country has good cause to be environmentally aware. Encompassing large sections of the Amazon Rainforest and the Andes, Colombia is more than 50 percent forest, and it borders both the Pacific Ocean and Caribbean Sea. With so many natural resources to preserve, the country is becoming increasingly eco-friendly.
While there are laws regarding environmental regulations of car washes, such as the requirement that all washing chemicals be biodegradable, according to some owners, these regulations are not yet fully enforced. Nonetheless, the ecological wash is popular enough to sustain ProntoWash’s Colombian locations, the second-largest car wash company in the country. The primary environmental benefit of ecological washes for both companies is water conservation. At Mr. Splash, the ecological wash system (a wash cart, a small mop, and a hose with spray nozzle) can clean up to 12 cars with just 5 gallons of water. “A traditional car wash uses 72 gallons to wash just one car,” Jassir explained.
The Colombian industry, like any other growing car wash industry, offers great opportunities moving forward. Over time, it’s likely that new tunnel technologies, water reclaim systems, stronger regulatory organizations, along with an increased ratio of car ownership will bolster the emerging industry.
