Fairown is increasing its influence in the Lithuanian consumer electronics market by advancing its sustainable Products-as-a-Service offering. The company has partnered with Inbank, a bank offering digital financing solutions to 500,000 active clients across five countries, and Topo Centras, a consumer electronics player in Lithuania and a member of Euronics Group. Euronics is one of the largest retail group in the world, operating in 35 countries through 8,500 independent stores.
The fintech’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 monthly subscriptions. Its 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 the 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 collaboration, Fairown will manage product renewal cycles, Inbank will provide the product financing, and Topo Centras will sell products to consumers.
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.
According to the press release, 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.
Fairown’s representatives explained that 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 their responsible buying option.
In a statement, Inbank’s officials said that 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, they are happy to see that their cooperation with Fairown and Topo Centras is bringing this innovative buying option to the Lithuanian market. They believe it will benefit consumers by delivering an alternative way of purchasing.
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