As of December 2015, the company claimed to have facilitated 1.4 million transactions worth more than US$1.1 billion
Online marketplace for used goods OLX has said it is launching a property listing portal in Indonesia in February this year.
The company made the announcement at a media gathering in South Jakarta today to mark its 10th anniversary in the country.
OLX, however, did not divulge details.
The property portal will face tough competition from the likes of rumah123.com, rumah.com, and rumahdijual.com (which was recently acquired by PropertyGuru).
OLX also said that it will improve the UI of its app and will also introduce new on-site promotions, such as special product labels and top listings, to increase monetisation.
The O2O business
In November last year, OLX made an entry into O2O by organising an offline bazaar event, called OLX Pasar, for used goods. The aim was to introduce the concept of used-products shopping to Indonesian market, so that consumers will eventually give OLX a try.
“We’d like to create awareness that the old stuff that you have been hoarding at home all this time may actually bring more value when it’s used by other people,” explained CMO Edward Killian.
Leading Indonesian e-commerce companies Carousell and Berrybenka organise O2O events in the country.
OLX’s journey in Indonesia began in 2006. The company acquired Tokobagus, started by Arnold Sebastian Egg and Remco Lupker, in 2014. A year later, OLX also acquired Tokobagus’s bigger rival Berniaga.
“It was the year 2014 when we started seeing changes to the consumer behaviour…Back in my days, people would visit the OLX site only when there was a certain necessity or when they wanted to buy a particular product. But today, people just drop by to check things out, find something they like, and then buy it,” explained OLX CEO Daniel Tumiwa.
As of December 2015, the company claimed to have facilitated 1.4 million transactions worth more than IDR 16 trillion (US$1.1 billion). Its top categories are electronic goods and gadgets, followed by cars and motorbikes. Most of its business comes from Jakarta, West Java and East Java.
About 90 per cent of the users access OLX through mobile and app, of which 65 per cent are Android.
The company also noted that a majority of its users opt for cash-on-delivery (COD), as it is the safest payment method possible, considering the nature of OLX’s business as a C2C marketplace for used goods.
When asked if OLX will follow in the footsteps of competitor Jualo to introduce a shared-account feature to increase security, Tumiwa said that OLX is more focussed on educating the consumer to increase security.
“We are more careful about testing new features. There will always be scams, whether you are selling online or offline. So we try to focus more on educating the consumer, encouraging them to meet up and see the goods first before they pay for anything,” he added.
When asked if another M&A is in the offing, Tumiwa said the possibilities are always open. “The possibility for another synergy is always open, but at this moment our focus will be to improve on the existing business model. We also believe that we can be the first company in Indonesia to make profit,”
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