Pawn Shops in Australia Industry Market Research Report Now Updated by IBISWorld

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Over the past five years, margins in the Pawn Shops industry in Australia have been under pressure from regulatory changes and online competition. For this reason, industry research firm IBISWorld has updated its report on the Pawn Shops industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Regulatory changes limiting interest rate levels and other fees have been introduced to protect vulnerable borrowers.

The Pawn Shops industry in Australia has suffered from a negative public image that has resulted from the high interest rates they charge on loans, the low prices offered to customers for goods and a perception that pawnbrokers take financial advantage of those most in need. According to IBISWorld industry analyst Alen Allday, “while this negative perception has potentially limited industry growth over the past few decades, major player Cash Converters has provided the industry with a more legitimate and professional image.” This has increased the market reach and customer base for industry operators.

In the five years through 2013-14, industry revenue is estimated to increase at an annualised 3.1% to $462.6 million, including 2.8% growth in 2013-14. “External competition from online auction sites and other loan providers continues to increase, which has contributed to lower margins across the industry in the past five years and limited industry revenue growth,” says Allday. Regulatory changes limiting interest rate levels and other fees have been introduced to protect vulnerable borrowers. These changes are expected to constrain industry revenue growth in future years.

The Pawn Shops industry is dominated by Cash Converters International Limited, which has 149 outlets across Australia, giving the industry a medium level of market concentration. The next largest pawn shop company in Australia only has six stores and accounts for a much smaller share of industry revenue for the year. In the almost three decades since its establishment, Cash Converters has found its niche in a highly fragmented industry through its franchise model and by building its brand image through local and national advertising campaigns. Future growth is expected to be lower than previous years, but with steady increases as Cash Converters continues to open new stores and expand into other geographic regions. However, this expansion will be at the expense of other industry operators, which are expected to either close down or be acquired by Cash Converters.

For more information, visit IBISWorld’s Pawn Shops in Australia industry report page.

Follow IBISWorld on Twitter:!/ibisworldau.

IBISWorld industry Report Key Topics
Pawn shops offer secured loans to individuals, who then provide items of personal property as collateral. These firms also retail used goods that are often acquired from unpaid loans or are purchased directly from consumers. The industry excludes companies that only provide unsecured loans or only sell second-hand goods.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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