SINGAPORE - E-commerce platform Carousell has acquired luxury bag reseller LuxLexicon to expand its presence in the luxury segment, said the company on April 2.
The luxury resale sector in South-east Asia, Hong Kong and Taiwan is expected to grow significantly and reach a market value of US$7.5 billion (S$10.1 billion) by 2026, Carousell said, citing research from RedSeer Strategy Consultants.
The company said it has seen a surge in its high-end bag listings over the last two years.
Luxury has been one of Carousell Group’s key focus categories since last year, said the firm’s co-founder Marcus Tan.
“Our ambition is to create the largest managed marketplace for authenticated second-hand luxury bags where users can buy and sell with trust and convenience,” he said, adding that users had given feedback that they lacked the knowledge in identifying counterfeit items.
Carousell launched two initiatives in 2023 linked to the buying and selling of such goods. One is Carousell Certified Luxury, which allows users to buy authenticated second-hand luxury bags, the firm said. The second initiative is Sell to Carousell Luxury, which allows people to sell or consign their bags directly to Carousell. It has also been drawing users.
“With the success of our Certified Luxury and Sell to Carousell programmes, we hear from users that they also want a wider selection of authenticated premium luxury resale products, and prefer to visit a physical location to view large-ticket items for added assurance,” said Mr Tan.
Carousell, by integrating LuxLexicon into its business, said it hopes to leverage the reseller’s expertise in the luxury bag market, particularly in resale and consignment. LuxLexicon will retain its brand and continue to operate independently, with founder Florence Low at its helm.
Carousell did not say how much LuxLexicon was acquired for.
Mr Tan said Carousell will continue to seek suitable acquisition opportunities “with the right partners that can help Carousell make buying and selling second-hand items more trusted and convenient in recommerce”.
The company’s other acquisitions include Laku6, an electronics recommerce platform in Indonesia, and Refash, a fashion-focused marketplace in Singapore.
