Fairown Expands Its Circular Economy Solution in Lithuania’s Consumer Electronics Market with Inbank and Topo Centras
- Personal Finance
- 06.09.2022 12:15 pm
Circular economy enabler Fairown is expanding its reach in the Lithuanian consumer electronics market by advancing its sustainable products-as-a-service offering. The company has teamed up with Inbank, a bank offering digital financing solutions to 500,000 active clients across five countries, and Topo Centras, the leading consumer electronics player in Lithuania and a member of Euronics Group. Euronics is the largest retail group in the world, operating in 35 countries through 8,500 independent stores.
Fairown’s new solution is unique as consumers can bundle up preferred product and service baskets at the point of sale and pay for these in affordable monthly subscriptions. Their products-as-a-service platform allows banks, brands, and retailers to participate in the circular economy, centred around producing, consuming and reusing products, thereby reducing both excessive waste and the need for raw materials by extending products’ lifetime value.
Fairown offers a complete suite of software and services to offer products for monthly subscriptions and manage the entire product life cycle from purchase to periodic renewals, repurposing, and recycling. By partnering with Topo Centras and Inbank in launching the solution TOPO FLEX, Fairown will advance its existing circular economy offering in Lithuania’s consumer electronics market. Under the partnership, Fairown will manage product renewal cycles; Inbank will provide the product financing, and Topo Centras will sell products to consumers.
Hendrik Roosna, CEO at Fairown, commented, “Our new solution gives consumers the freedom to put together the desired basket at the point of sale, including products, accessories, and services - all conveniently in one bundle. They can pay for only the time they use the products, buy at a lower price with no upfront or additional costs, as well as make green and conscious choices. This is a new and innovative combination in Lithuania’s consumer electronics market, which we are delighted to be launching with Inbank and Topo Centras, the leading consumer electronics player in the country. As Topo Centras is part of Euronics Group, the future could see us rolling out this innovative solution across the entire group.”
In the circular model, all participants win - retailers get loyal customers and recurring sales; banks benefit from the predictable payment flows from customers, and consumers get lower price points and sustainable offerings.
Demand for sustainable initiatives is increasing in consumer behaviour - people want to buy solutions, not products. Research shows that 74% of consumers prefer experience over ownership of products. This rises to 90% of the younger generation - Generation Z – who believe that companies must address environmental issues. They are also less likely to be brand loyal. Fairown’s products-as-a-service platform delivers on both fronts.
Roosna continued, “To match changing behaviours and demands, brands, retailers, banks, and consumers need attractive sustainable offerings. Fairown’s survey amongst 4,000 product subscription users in the Nordics found that 70% of consumers purchase a product because of the availability of our responsible buying option.”
Remigijus Štaras, CEO at Topo Centras, said, “Innovation is the key driver for Topo Centras, and this unique product called TOPO FLEX will be our major new launch for the end of 2022. We are entering the most important period of the year – Christmas – by being even more competitive not only in terms of better offers, but also sustainability as Fairown will guarantee a new life to the devices used by our clients. I am grateful to Fairown, Inbank, and our team for the hard work to complete this project on time and for the quick launch of this retail innovation.”
Vaidotas Rimeikis, Lithuania Country Manager at Inbank, added, “With the electronics market changing beyond recognition over the past decades, consumers are looking for new solutions of how to get the most up-to-date products in a sustainable way. Therefore, we are delighted to see that our cooperation with Fairown and Topo Centras is bringing this innovative buying option to the Lithuanian market. We believe it will benefit consumers by delivering an alternative way of purchasing.”