RFID technology is revolutionising the hotel laundry sector

There are two main applications of washing labels, one is the washing of hotel linen, the other is the washing of hospital linen, because the application of the medical field will be analysed separately, so this section

We will analyse the application in medical field separately, so this part will only analyse the washing of hotel fabrics.

The washing of hotels includes the washing of bed sheets, quilt sheets, pillowcases, towels and other items, because of the high cleaning requirements of such items, hotels will be outsourced to enterprises specialised in washing to carry out cleaning.

To carry out cleaning, this brings the problem of asset management and inventory, so this also gave birth to the demand for UHF RFID tags in this industry, of course, for the hotel tenants.

Of course, for hotel guests, you can also use RFID tags to understand the hotel's cloth is not in the recent time to have cleaned, in order to be more assured that the stay.

To assess the market capacity of UHF RFID tags in the hotel laundry industry, we can analyse the number of hotels and rooms in China.

According to statistics, by the end of 2022, there will be 312,700 hotels (15+ rooms) with 16,308,500 rooms.

According to our research, the number of UHF RFID tags needed for each hotel room is about 30, and thus the number of laundry tags needed for the entire hotel fabric industry is estimated to be about 4.5-5 billion.

According to our research, each hotel room needs about 30 UHF RFID tags.



Market Summary

There are two main business models for hotel fabric washing, one is the hotel as an investor, purchasing RFID tags to manage its own hotel fabric assets; the other is a third-party fabric leasing company, using RFID tags to manage its own fabric assets.


The other is a third-party fabric leasing company, which adopts RFID tags for the purpose of asset management and lease settlement.


Wash tags are not disposable consumables, but need to be reused, generally a tag needs to be washed hundreds of times, or even more, and wash tags from the chip to the substrate to the encapsulation.


Moreover, the washing label is different from ordinary labels from the chip to the substrate to the package, so the price of washing labels is more expensive, generally costing 1-3 yuan.

According to our research information, the annual market shipment of washing labels in China is about 20 million, the market penetration is still relatively low, according to the previous results of our calculations, China's hotels and restaurants.


According to the results of our calculations, the total capacity of China's hotel market is about 450-500 million labels, a conservative estimate of the proportion of enterprises capable of investing in labels is about 20%, the entire label market capacity is about 100 million labels.

The capacity of the entire label market is about 100 million pieces, and the general fabrics need to be replaced in about 3 years, the iteration speed of the label is also the same, so the number of labels in this market will remain in the tens of millions of pieces per year.


Therefore, the number of labels in this market will be maintained at the level of tens of millions every year.

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