The path to multiservices

12th of March 2013
The path to multiservices

The trend towards cleaning companies in Russia becoming multiservice businesses is definitely the most popular market trend. That’s according to Oleg Popov of Cristanval, ECJ reporter there.

The Russian market for cleaning services was created at the beginning of the 21st century, chiefly due to foreign companies that brought with them European standards for conducting business. Despite its youth, this market can be thought of as being completely saturated, which has led to a decrease in the rate of growth in the profitability of cleaning as a business.

Companies are in a constant search for new opportunities to develop and master new business niches far beyond the bounds of traditional cleaning services. Now, cleaning companies counting several dozen people on their staff and capable of fulfilling between five and 10 kinds of work are doomed to give way in the market to multiservice contractors with a sold staff of employees and a broad assortment of services on offer. This tendency was quite clearly revealed in 2010, and since then it has only strengthened.

Clear leaders in the cleaning sector have been determined, in Moscow and the regions, and they are now actively developing the trend toward facility management, staff provision, fleet outsourcing, catering, landscape services, snow removal, and material services. They have also been required to be suppliers of consumable materials, completion materials, and chemical solutions.

The range of services they provide continues to broaden and the competition has long passed beyond price, since cleaning companies have overwhelmingly turned into multiservice. The main
reason for this trend is the constant strengthening of competition in the cleaning sector and, as a consequence, decrease in the profitability level of the business.

From their side, clients have likewise experienced the benefit of a mutual relationship with one contractor that is a cleaning company with several lines of business. To the extent that every day an even greater number of cleaning companies transition into the multiservice category, the number of specialists on their staff in professional real estate service increases.

Cost savings

The chief goal lies in the capability of the company to execute the maximum amount of work using its staff personnel. According to expert estimations, turning away from outside subcontractors and offering all types of services under unified management results in savings to the client of up to 20 per cent of costs - compared with using different subcontractors.

All large players that had originally entered the Russian market as exclusively cleaning companies  are now actively developing new business lines. Now, many are engaged in installation of systems to keep street grime out, a service for periodically replacing dirt-resistant rugs, refurbishment and maintenance of surfaces where different kinds of natural stone were used for decorations, catering, planting, phyto design, landscape design, grounds maintenance, and many others.

Multiservice as a phenomenon has entered the life of the Russian cleaning market and, to all appearances, is the operative prescription for survival in the conditions of increased competition.


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