Industry Analysis of Pawnshop in the Philippine

Clients come into a pawnshop for three reasons. First they need cash, to obtain a quick loan. The second is to pawn private belonging such as jewelry, gadgets and other valuable items and the last is to buy unredeemed items that are for auction. But, now it has evolved into multi purposes. Pawnshop is now the same as "sari-sari store" that sells variety of products and services. Through the years like investment, pawnshop is likewise diversified into unrelated business strategy like the business of money remittance, money changing, bills payment for collections services, e-load, providing facilities in either sale of micro insurance products to households. Pawnshop is the oldest source of credit. It acquired popularity as an alternative source of credit in the Philippines. This study utilized the mixed method: quantitative and qualitative. A descriptive evaluative research design was applied in fully describing the data obtained from the respondents. To give breadth and depth, triangular method in the instrumentation process-interview, questionnaire and observation was used. To determine its financial performance with regard to its profitability, growth and stability, Financial Ratio analysis was used. However, to assess its attractiveness and competitiveness, Porter's five forces, SWOT and PESTEL analysis were utilized. The study had a total of fifty (50) respondents coming from the different departments of the selected pawnshop companies. Data were compared with samples taken from a base year and compared to any data that manifests itself after the baseline date. The researcher concluded that the current regulations about the rates of interest and the self governing means of repayment behavior or "owned-regulation" s work effectively in this industry and thus promotes awareness for consumer lending that helps develop a fair lending activity toward sustainability; the working poor and the middle-income are the most common customers of the pawnshop in the Philippines; the pawnshop industry in Metro Manila is dominated by females. Where most owners are middle-aged and educated women who generally hire qualified women staff. It can surmise that female make good pawnshop owners.