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 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.
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.
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.
