March 9, 2022
Top trends in retail sales of pre-owned goods in 2021: technologies, jewellery and power tools
In 2021 the demand for pre-ownedgoods increased in Latvia - phones, jewellery, laptops and power tools were among the most demanded categories of merchandise, according to Banknote statistics.
Seasonality has the biggest effect on demand for certain product groups - in winter people tend to spend more time indoors watching TV and playing games, whereas in spring there is an increasing interest in repair tools, and as the weather gets warmer - in gardening and forestry tools. At the end of summer people start preparing for school and work after summer holidays. Demand is also affected by government decisions in terms of restrictions and payment of benefits. Nowadays, when faced with a need, people more often choose pre-owned items, therefore getting better value for money solution.
“People are interested not only in practical shopping, but also in selling goods they no longer need for further use. Currently, Banknote has made it especially convenient and offers valuation of goods at the branch and remotely, which motivates people not to store things that are no longer needed” says Didzis Ādmīdiņš, Chairman of the Management board of AS DelfinGroup. “In addition to business reasons, the idea of green thinking and lifestyle is becoming quite important for society along with the understanding about the benefits of circular economy like economical use of resources and reuse of things, which both create an meaningful environmental and personal financial benefit. All goods available at Banknote branch network and online store have been carefully inspected, cleaned up, refurbished, if necessary and priced lower than new ones.”
Most demanded – a variety of mobile phones
In 2021 the most popular items from a wide range of pre-owned goods were mobile phones, reaching the highest level of demand at the beginning of school year. Banknote shops historically has been offering a wide variety of mobile phones, even very recent models, for an affordable price. Many people regularly switch to a new model while the previous one is still functional and in visually good condition with a quite long expected service life. Thus, good quality devices enter the secondary market, but at a significantly lower price than in stores that sell brand new goods. This is confirmed by the average age of the most purchased phones, which is two to five years. Last year, without doubt, the most popular were Samsung phones, followed by Apple, Huawei and Xiaomi products. The most popular phone models were Iphone 11, 8 and 7, along with A51 and A71 by Samsung. It should be noted that people still buy phones with buttons, usually preferred by older people, school children to limit excessive use of Internet or various games on a daily basis, as well as in situations when a temporary backup device is needed while a smartphone is in service.
Highest increase in demand – jewellery
Demand for jewellery has grown fast last year - by 19% serving the needs of more sophisticated customers. This was facilitated by the competitive offer and pricing policy of Banknote, as well as a wide range of jewellery items both – brand new and the ones restored by jewellers. The best-selling items were chains, rings, earrings and bracelets. Spring is the most popular season for buying jewellery either as a classic choice for a Valentine's Day gift or for the 8th of March. In spring many women want to look better and delight themselves with a luxury item. It’s worth noting, that everyone can find the right piece of jewellery at Banknote shops – from brand new to pieces having an antique value.
Computers for various needs and budgets.
Laptops have remained in high demand since 2020, and Banknote offering can serve various needs in price and products. Computers, like other merchandise, are inspected and maintained accordingly. The growing demand can be explained by the adjustments in daily habits due to Covid-19 pandemic, when working and studying remotely became a normality. There was a lot of interest for laptops at the beginning of the school year in 2021, when we could eventually face another year of distance learning. However, laptop sales soared at the beginning of last year, when government paid out 500-euro child benefits allowing many families to get the much-needed device. The proportions of products sold indicate that mobility and the opportunity to work and study regardless of location has become increasingly important for people – sales of laptops and tablets by far surpass the sales numbers of desktops, which nowadays constitutes less than a tenth of all computer equipment bought, and the proportion is shrinking.
Slightly used tools and affordable price – a chance for do-it-yourself repairs
To a large extent, restrictions introduced by Covid-19 pandemic have contributed to a higher demand for tools. People spend more time at home, and improvements of living space have become of importance. Most people do not carry out repairs daily, so they only need tools for a short period of time, that’s why Banknote can offer slightly used tools at a much better price. Our offering of tools can serve both professionals and beginners. The most popular tools are cordless screwdrivers, grinders, punches and laser levels. People tend to buy tools for repair works in early spring, when we spend most of the time indoors or perhaps to fulfil a New Year’s resolution to do some repair work. As the weather gets warmer, the demand for garden equipment grows rapidly.
Improved home entertainment quality
In addition to the above, analysis shows seasonal effect on consumer habits. Long and dark winter season and the lockdown imposed by the government increased the demand for improved quality of home entertainment. During this period there was very demand for both TVs and game consoles - PlayStation 4 in particular, which was the most popular product last year by far. In addition, various other gaming options are offered to improve one’ s entertainment with little cost.
General trends confirm the growing interest and involvement in the circular economy, as well as the increase in the credibility of Banknote brand. People trust the quality of the goods - they have been tested and, if necessary, repaired - and Banknote brand is a guarantee of reliability, whether the product is purchased in person at a branch or in Banknote online shop veikals.banknote.lv. This applies not only to the purchase but also to the sale of goods, proven by interest of public to sell things they no longer need and to evaluate the items they want to sell remotely as well.
About AS DelfinGroup
AS DelfinGroup is a licenced technology-based financial services company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35 thousand loans are issued every month and serviced by the professional team of more than 270 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and since 2021 as a share issuer on the Baltic Main List. The company’s IPO in 2021 attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In 2021, the company's net loan portfolio grew to EUR 43 million, while its EBITDA reached EUR 10.2 million, with profits before income tax for dividends EUR 5.2 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.