Carousell Enters Brick-and-mortar Retail With Luxury Handbag Store In Singapore
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The Singapore-based e-commerce platform, Carousell, is set to launch its first physical store dedicated to second-hand luxury handbags in the city-state.
Carousell Luxury Store Opening
Carousell will debut a 1,400 square foot retail space, christened as Carousell Luxury, at The Centrepoint later this week. The move marks the firm’s first foray into brick-and-mortar retailing under its own brand.
The store will offer an array of handbags and accessories from high-end labels such as Louis Vuitton, Chanel, Gucci, and Yves Saint Laurent.
Business Model and Pricing Strategy
Tresor Anne Tan, the director of client relations at Carousell Group, explained that the store will operate using a “net-earnings model”. In this approach, sellers agree in advance on the amount they will receive once an item is sold.
Despite the overheads associated with running a physical store, the items will still be priced around the usual market rates. However, Carousell will retain a portion, approximately 25-30%, of the consignment price. This fee helps cover costs such as digital marketing, product photography, and other services that the platform provides.
Questions & Answers
What is Carousell’s new venture?
Carousell is opening a physical retail store named Carousell Luxury, which will sell second-hand luxury handbags and accessories.
What is the business model for Carousell Luxury?
The store will operate on a “net-earnings model”, where sellers agree upfront on the earnings they will receive once an item is sold.
How does Carousell cover the additional costs of running a physical store?
Carousell will take a cut of about 25-30% from the consignment price of each item sold to cover additional costs such as digital marketing and product photography.