Analysis of the market for pawnshop services in India
The relevance of research
For centuries, gold has been the main subject of collateral. Contrary to the prevailing stereotypes that pawnshops are interested in buying up gold and other valuable items, pawnshops receive the dominant share of their profits from paying interest on loans.
Purpose of the study
Analysis of the state of the pawnshop market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the pawnshop market.
Content
Part 1. Overview of the Indian pawnshop market
1.1 Definition and Characteristics of the Indian Pawnshop Market
1.2. Dynamics of the volume of the Indian pawnshop services market, 2012-2017 (tentative)
1.3 Market structure by type of services provided in India
1.4. The structure of the pawnshop services market in the Union Territories
1.5. Assessment of current trends and development prospects of the market under study
1.6.Evaluation of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis of the Pawnshop Market in India
2.1.Major players in the market
2.2. Market shares of the largest competitors
2.3.Profiles of the main players
Part 3. Analysis of the consumption of pawnshop services. Identification of potential customers interested in the service
3.1. Estimation of the volume of consumption of pawnshop services per capita
3.2 Market Saturation and Estimated Market Potential in India
3.3 Description of consumer preferences
3.4 Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the pawnshop services market until 2022
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations to existing market operators
Research excerpt
Part 1. Overview of the Indian pawnshop market
1.1 Definition and Characteristics of the Indian Pawnshop Market
Consider the characteristics and features of the pawnshop services market in the Indian market.
Currently, a pawnshop is a microfinance institution that provides financial accessibility in most regions of the country. In pawnshops, a loan can be obtained quickly, the registration procedure takes up to 15 minutes. According to the law, you can get a loan only with a passport or a document confirming the legal stay of the client in India.
1.2. Changes in Indian Pawnshop Market Volume, 2012-2017 (preliminary)
Traditionally, the volume of the pawnshop services market is considered to be the total volume of pawnshop loans. Consider the dynamics of the market volume in the period 2012-2017.
According to the GidMarket calculation, the volume of the pawnshop services market in 2017 amounted to … billion Rs., … compared to the level of 2016 by …%.
If we talk about revenue as one of the market indicators, then the total revenue of companies in the industry at the end of 2016 amounted to… billion Rs., … relative to 2015 by …%.
Diagram 1. Dynamics of the volume of the pawnshop services market, 2012 - 2017 (preliminary), billion Rs.
1.3. Market structure by type of service provided in India
The …% market consists of … . Approximately … % – share of … . …% fall on …
Diagram 2. Structure of the pawnshop services market by types, %
1.4. The structure of the market for pawnshop services in the Union Territories
The geographic structure of the pawnshop services market is dominated by … Union Territories (33,7%). Further, in descending order, the share of ... Union Territories (16,5%), ... Union Territories (12,1%), ... Union Territories (10,9%), ... Union Territories (10,2%), ... .
...
Diagram 3. The structure of the provision of pawnshop services in India by region, %
1.5. Assessment of current trends and development prospects of the studied market
The main trends in the pawnshop services market include the following: ...
1.6. Assessment of factors affecting the market
Demographic
Over the past nine years, the population of India has shown a positive trend. At the same time, in 2013–2016, there is a positive natural increase in the population. Population growth largely ensures migration growth. Population growth increases potential demand now and in the future. The positive influence of the factor.
Chart 7. Population change in India, 2010-2018
1.7. Analysis of sectoral indicators of financial and economic activity
According to GidMarket, the profit (loss) from the sale of pawnshop services in the Union Territories of India in 2017 amounted to … billion Rs., having increased by …% compared to 2016.
Values of current liquidity in 2012-2014 and in 2016-2017. pawnshop service industries testify to …
Diagram 10. Current liquidity (total coverage) in the service sector of pawnshops for 2012-2017, times
Part 2: Competitive Analysis of the Pawnshop Market in India
2.1. Major players in the market
As noted above, the pawn shop market in India is a low-concentration market. According to various estimates, there are about … enterprises operating in the Indian pawnshop services market, and the TOP-5 operators account for …
The largest market operators include the companies “…”, …
Table 8. Main companies participating in the pawnshop services market in 2017
2.2. Market shares of the largest competitors
The assessment of the market share of the largest competitors was made on the basis of data on the revenue of enterprises for 2016, the total revenue of the pawnshop services industry in 2016, the GidMarket forecast for the revenue of enterprises and the total revenue for 2017.
Diagram 13. Shares of the largest competitors in the pawnshop services market in 2017, %
2.3. Profiles of major players
LLC PAWNSHOP YUS-585
LLC PAWNSHOP YUS-585. Federal network of pawnshops. Founded in 2000, is the market leader in pawnshop services in India. It has a widely branched network, operates in 255 cities in India and has more than 640 jewelry stores and pawnshops.
Player #2
...
Player #3
...
Player #4
...
Player #5
...
Diagram 14. Dynamics of the total revenue of the largest pawnshop market operators (TOP-5) in India, 2012-2017
Part 3. Analysis of the consumption of pawnshop services. Identification of potential customers interested in the service
3.1. Estimation of the volume of consumption of pawnshop services per capita
The main attraction of the pawnshop service is the ease of obtaining a loan: speed, no need to collect a package of documents, the possibility of early redemption or, conversely, extending the loan agreement. The NAFI Analytical Center reports that, according to a study conducted by the center, in recent years, pawnshops have been visited by from ... to ...% of the adult population of India.
3.2 Market Saturation and Estimated Market Potential in India
Currently, more than 50% of market participants are micro-entrepreneurs with one to several retail facilities. At the same time, there are large all-India networks of billion-dollar pawnshops on the market, the total number of objects of which is more than 600.
3.3 Description of consumer preferences
As a rule, pawnshop clients are people who need urgent money. Therefore, the obligatory conditions for the successful operation of a pawnshop are the efficiency and simplicity of obtaining a loan, competitive conditions for evaluating the product and the interest rate, and a convenient location. Often branches of pawnshops with a high turnover are located in places with a high human flow, near the final stops of transport, near markets, etc.
...
3.4. Price analysis
Pawnshop rates depend on the value of the collateral. The lower it is, the higher the percentage. And vice versa. So, with a large pledge, the interest rate can be reduced up to 2 times relative to the rate with a small pledge. As a rule, special conditions apply for regular customers, as well as certain categories of citizens: pensioners, mothers of many children, disabled people, etc.
...
Part 4. Assessment of factors of investment attractiveness of the market
The evaluation of investment attractiveness factors was carried out…
Part 5. Forecast for the development of the pawnshop services market until 2022
The development of the pawnshop market in the future until 2022 will be largely determined by …
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. Dynamics of the volume of the pawnshop services market, 2012 - 2017 (preliminary), billion Rs.
Diagram 2. Structure of the pawnshop services market by type, %
Diagram 3. The structure of the provision of pawnshop services in India by region, %
Chart 4. Dynamics of India's GDP, in 2012-2017 (preliminary), % to the previous year
Chart 5. Monthly dynamics of the US dollar against the rupee, January 2014-Feb. 2018, Rs. for 1 US dollar
Diagram 6. Dynamics of accounting prices for gold, set by the Central Bank of India, 2012-Jan. 2018, Rs./gram
Chart 7. Population dynamics in India, 2010-2018
Diagram 8. Dynamics of real incomes of the population of India, 2011 - 2017 (tentative)
Diagram 9. Profitability of profit before tax (profit of the reporting period) in the sphere of pawnshop services in comparison with all sectors of the Indian economy, 2012-2017, %
Diagram 10. Current liquidity (total coverage) in the service sector of pawnshops for 2012-2017, times
Chart 11
Diagram 12. Financial stability (security of own working capital) in the pawnshop services sector, in comparison with all sectors of the Indian economy, 2012-2017, %
Chart 13. Shares of the largest competitors in the pawnshop services market in 2017, %
Diagram 14. Dynamics of the total revenue of the largest operators of the pawnshop services market (TOP-5) in India, 2012-2017
Diagram 15. The volume of consumption of pawnshop services per capita, 2012-2017, Rs./person
Diagram 16. The importance of criteria for choosing a pawnshop by consumers
Diagram 17. Forecast of the market volume in 2018 - 2022, billion Rs.
Tables
Table 1. Average price of gold in the world market, 2012-2017, $ per ounce
Table 2. Average market values of the full cost of consumer credits (loans), which are used for consumer credit (loan) agreements concluded by pawnshops with individuals, 2015-2 quarter. 2018, % per annum
Table 3. Limit values of the full cost of consumer credits (loans) that are applied to consumer credit (loan) agreements concluded by pawnshops with individuals, Q4 2015-2 quarter 2018, % per annum
Table 4. STEP-analysis of factors influencing the pawnshop services market
Table 5. Profit (loss) from the sale of pawnshop services in the Union Territories of India, 2012-2017, million Rs.
Table 6. Gross profitability of the pawnshop services industry in comparison with all sectors of the Indian economy, 2012-2017, %
Table 7. Absolute liquidity in the pawnshop services sector in comparison with all sectors of the Indian economy, 2012-2017, times
Table 8. Main companies participating in the pawnshop services market in 2017
Table 9
Table 10. Basic information about the 585 GOLD participant in the pawnshop services market
Table 11
Table 12. Basic information about the participant (LLC ""The key to success"" Lombard ""(incl. LLC ""Lombard 911.2"") of the pawnshop services market
table 13
Table 14. Consumer price indices for pawnshop services in India in 2012-2017 (available period), %
Table 15. Average prices for services of pawnshops across the Union Territories
Table 16. Assessment of factors of investment attractiveness of the pawnshop services market
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