By Timothy Goh for The Straits Times

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Home-grown online marketplace Carousell Group will open a new retail store selling second-hand luxury handbags in Orchard Road on Sept 23.

The 1,400 sq ft space at The Centrepoint, called Carousell Luxury, is the company’s first offline store under its own brand.

It opened on a soft launch basis in August, and currently offers handbags and other accessories such as wallets, pouches and scarves from luxury labels such as Louis Vuitton, Chanel and Yves Saint Laurent.

Carousell Group also operates LuxLexicon, a luxury resale platform it acquired in 2024. The platform specialises in Hermes bags, carries a selection of luxury watches, and runs a retail outlet at Palais Renaissance, which is also in Orchard Road.

Ms Tresor Anne Tan, director of client relations at Carousell Group, told The Straits Times in a recent interview that the new store comes as consumers of luxury goods are becoming more conscious of economic value and financial sustainability.

“Buyers are paying less for something that would otherwise cost double, triple in the brands’ retail stores,” she said. “What’s more, the condition in which they are getting these pre-owned bags often surpasses what they think second-hand products are.”

Ms Tan said operating a physical store offers some advantages over online transactions on the Carousell app as buyers can inspect products in person and benefit from Carousell Luxury’s authentication process.

A team of five appraisers working on rotation checks everything, from materials to stitching and embossing details.

For consignors, she said the new store operates on a “net-earnings model”, in which the sellers agree upfront on the amount they will receive once an item is sold.

Items are priced around market rates despite the additional cost of running a store, but Carousell takes a cut of about 25 per cent to 30 per cent of the consignment price, which covers digital marketing, product photography and other services.

“This way, sellers can also be assured any discount or promotion that we may offer as part of our sales campaign will not affect their earnings,” said Ms Tan.

“We are deliberately not increasing any of our prices just because there’s a higher cost associated with a retail space because at the end of the day, it’s also important to sell the item because that’s how a reseller like us makes money.”

The store also offers both trade-in and direct buy-out options.

Under direct buy-out, where the item is directly sold to Carousell Luxury, sellers get paid up front but receive about 25 per cent to 30 per cent less for their items – depending on the condition of the item and market demand – as Carousell Luxury assumes the risk if the item does not sell.

Since its soft launch in August, the best-selling brand at Carousell Luxury has been Louis Vuitton, making up one in four bags sold, followed by Chanel and Gucci.

Items at the store typically take between two and four weeks to sell.

The store has drawn buyers and sellers aged from their mid-20s to late 50s, mostly professionals, managers, executives and technicians, said Ms Tan.

Among overseas customers, many are from South Korea and China, though locals still make up the majority, she added.

Ms Tan also noted that the store deals “primarily with sellers based locally” for ease of payment, item verification and communication.

Overseas buyers who are not in Singapore can buy bags through LuxLexicon’s website by filtering for “The Centrepoint” to view items managed by Carousell Luxury.

The same range is also listed on Carousell Luxury’s official store on the Carousell app, but this channel is limited to local buyers.