Merging is a business strategy to either save one company from bankruptcy or to strengthen and widen the reach by combining their established network of clients and resources. For bag lovers and collectors in the Philippines, it does not matter as long as there is enough space to cater to designer handbags to their list of items for sale on luxonlineph and the baggery ph for bag addicts.
This subject became the talk of the town when two giants in the online marketplace for preloved bags in Philippines forged a partnership in the second half of 2019. The Singapore-based online shopping site Carousell is expected to integrate with the world’s largest and fastest-growing classifieds marketplaces – the OLX Philippines of the OLX group. The strong commercial capabilities of OLX combined with the highly engaging applications and technologies used by Carousell are seen to set a significant breakthrough in the history of the online marketplace in the Philippines.
Resources and patronage sharing
Both OLX and Carousell have its strengths and resources that resulted in the expansion of their reach. With 13 years of expertise, OLX Philippines was considered as the most extensive online classified ads site in the country, reaching more than 6 million unique users monthly. On the other hand, Carousell has the highest engagement rate and time spent among all the online marketplace players. It also registered a fourfold increase in volume since it started, with 196 million listings and 71 million sold items to date.
With a considerable amount of money invested by the most significant technology investors in the world – the Naspers, the ability to provide enhanced online marketplace solutions has created more possibilities for the community of 83 thousand for Bag Authority in Manila, the home of Original Preloved and brandnew designer bags.
With these resources and overwhelming patronage of buyers and sellers, there is no doubt that the merger will be advantageous in trading designer bags. There are two scenarios that are most likely to happen with this kind of marketplace. Because of overwhelming fake and counterfeits in eBay Philippines, nobody trusts eBay Philippines anymore.
First is the higher probability that designer bags will be sold in no time considering the vast register of daily visitors of OLX and Carousell. Second is the high chance of being left behind due to the volume of potential buyers or sellers since all users are treated equally and can transact at their own pace. It will be then necessary for users to take extra-precautions in dealing with their valuable items.
Protection against counterfeits
The more significant issue for the designer bag community that Carousell and OLX need to deal with is the mechanism to prevent the circulation of counterfeit items on their online marketplace. Although they adhere to the protection of intellectual property rights of others, there is no way to check the authenticity of the luxury goods posted on their platform.
The responsibility to address such violations is passed unto the customers by reporting their suspicions to certain counterfeit products. But again, with the flooding of items available for buying and selling, it will be hard and truly a test of efficiency for Caroussel and OLX to systematize the detection of fake goods in the online marketplace.
This merger will somehow benefit designer bag fans. But it will inevitably affect the local luxury bag trading in the country where the authenticity of products and satisfaction of customers are always assured.