Heaptalk, Jakarta — A multi-category platform for secondhand goods in Greater Southeast Asia, Carousell Group announced the acquisition of LuxLexicon, a luxury bag reseller and authenticated luxury consignment platform in Singapore (04/02).
The total luxury resale market in Southeast Asia, Hong Kong, and Taiwan combined is projected to grow to US$7.5 billion by 2026, based on RedSeer Strategy Consultants’ research. The Group has observed similar organic growth over the past few years and is well-positioned to cement its e-commerce leadership.
The organic growth is mainly driven by Carousell, whose luxury bag category listings in Singapore have grown monthly by 71% over the past two years. This acquisition aims to scale up the growth of Luxury, one of the Group’s largest categories, through an omnichannel strategy and extended premium luxury offerings.
Previously, the Group released programs in 2023 to make buying and selling authenticated luxury bags more trusted and convenient, driving more users to choose secondhand. Carousell Certified Luxury, which allows users to buy authenticated luxury bags, has quadrupled transaction volumes since its release. Sell to Carousell Luxury, which enables users to sell or consign their bags directly to Carousell, has more than doubled in leads.
Further, the success of the 2023 programs underscores growing consumers’ demand for a more trusted and convenient option for luxury bag resale. Hence, the Group took the initiative to acquire LuxLexicon’s business and assets with goals to further enhance its portfolio with LuxLexicon’s strong reputation, wide supply in premium luxury bag resale and consignment, as well as deep expertise in offline retail.
Supercharging luxury bag business in SEA
“We are excited to partner with Florence and the LuxLexicon team to accelerate our ambition of creating the largest managed marketplace for authenticated secondhand luxury bags where users can buy and sell with trust and convenience,” said Co-founder of Carousell Group Marcus Tan.
Marcus explained that he initially met Florence to partner with LuxLexicon for the Carousell Certified Luxury program. After conversations, they realized that both parties had a similar vision. He added, “By joining forces with LuxLexicon’s expertise, we could help each other supercharge our luxury bag business in Southeast Asia, Hong Kong, and Taiwan over the next few years.”
In addition, the acquisition will allow LuxLexicon to leverage Carousell Group’s expertise in online recommerce and overseas expansion for future growth. LuxLexicon will continue to be led by founder Florence Low and operate as its own brand, retaining its name, retail space, and team.
Meanwhile, LuxLexicon founder Florence Low said, “LuxLexicon and Carousell Group share a common goal of providing a trusted and accessible platform for buying and selling authenticated luxury bags. Additionally, we both see similar strong consumer demand for popular brands such as Hermès, CHANEL and Louis Vuitton. This acquisition allows us to offer more variety of bags and recommend interested consumers to each other. I am excited to further grow the brand with Carousell Group’s scale, investment and regional expertise in the coming years and beyond.”
This acquisition follows Carousell Group’s 2022 acquisition of Laku6, Indonesia’s electronics recommerce platform in Indonesia and Refash, Singapore’s largest omnichannel fashion recommerce retailer. In 2023, Carousell Group launched Carousell Campus, its regional headquarters dedicated to advancing recommerce capabilities and housing its various Group brands under one location.
