Photo credit: Carousell Group

Carousell Group, a major player in Southeast Asia’s classifieds space, has expanded its luxury segment by acquiring LuxLexicon, a Singapore-based reseller of luxury bags.

The move is aimed at strengthening Carousell’s luxury offerings and improving the customer experience across its channels.

The luxury resale sector in Southeast Asia, Hong Kong, and Taiwan is expected to grow significantly and reach a market value of US$7.5 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, with an increase of 71% per month over the last two years.

This enhanced focus on luxury goods may help take Carousell closer to its goal of growing its users by 10x.

To make buying and selling luxury bags more reliable and user-friendly, Carousell launched two initiatives in 2023.

The Carousell Certified Luxury program, which verifies the authenticity of high-end bags, has seen a fourfold increase in transactions. The Sell to Carousell Luxury service, meanwhile, allows users to sell or consign their bags to Carousell and has also seen a significant surge in interest.

These launches follow the appointment of Gijs Verheijke– ex-CEO and founder of Singapore fashion platform Ox Street – as the head of Carousell’s luxury segment in January 2023. Carousell acquired Ox Street, a marketplace for high-end sneakers, in October 2021.

By integrating LuxLexicon into its business, Carousell hopes to leverage its 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.

The company’s other acquisitions include Laku6, an electronics recommerce platform in Indonesia, and Refash, a fashion-focused marketplace in Singapore.

Carousell has established a regional headquarters, known as Carousell Campus, to further develop its recommerce capabilities and consolidate its various brands.

See also: Niche recommerce takes the fight to Carousell in SEA