OLX : EMRGING LEADER IN CLASSIFIED INDUSTRY MARKETPLACE.

OLX : EMRGING LEADER IN CLASSIFIED INDUSTRY MARKETPLACE. ******************************************************************************** INTRODUCTION: ******************************************************************************** OLX is into the classifieds market. OLX offers a free, fast & hyper-local way for customers to buy, sell or exchange used goods and services, by posting a free ad on the website. OLX, founded in 2006, is an Argentinian global online marketplace,operating in 45 countries, and is the largest online classified ads company in India, Brazil, Pakistan, Poland, Portugal and Ukraine South African media group Naspers, acquired a majority of OLX in 2010 and 95% of the company in 2014. OLX had 11 billion page views, 200 million monthly active users, 25 million listings, and 8.5 million transactions per month in 2014. The rising Internet population, changing mindset of consumers, aggressive advertising and eager investors have added up to exponential growth in the online classifieds business in the last three-four years. IN Such companies like OLX and Quicker Marketing is about 75 per cent of the total cost. OLX acted as a “wealth creator” in emerging markets, enabling people to easily monetize their services and possessions. ******************************************************************************** TYPES OF CLASSIFIED MARKET: ******************************************************************************** The classifieds market is divided into two parts: verticals and horizontals. Vertical companies specialise in specific segments like cars, real estate and matrimony. Horizontal players (like Quikr and OLX) follow a marketplace model, much like the US-based Craigslist. From selling buffaloes, coins, gramophones to utility items such as used mobile phones, cars and furniture, people are using such websites to sell almost everything. ******************************************************************************** BENEFRIT TO VERTICAL CLASSIFIED INDUSTRY MARKET:- ******************************************************************************** Vertical classified websites offer a much richer experience. Vertical classified companies, backed by global venture funds, have made strong inroads in recent years. Companies like Cardekho, Carwale, Cartrade, Naukri, Housing, 99acres and IndiaProperty have specialised products and features that are better targeted towards end users. "Quikr will never be able to compete with Naukri. India’s leading classified platform OLX has now emerged as the top destination for buying and selling pre-owned goods, as per recent numbers revealed by a market survey conducted by a global consulting firm, Frost & Sullivan in 2016. According to a survey by Frost and Sullivan, the top reasons for deciding on the platform for selling – whether offline or online – is getting the most number of potential buyers, followed by the ease of use, and convenience. Selling online is preferred as it is considered to be hassle-free and less time consuming, and provides more leads than offline channels. Transactions through online websites like OLX not only reduce both cost and time of searching and spreading the word through one’s network, they also give the user the liberty to decide whom to conduct the transaction with ******************************************************************************** GLOBALLY CLASSIFIED MARKET AND OLX POSITION:- ******************************************************************************** "The global trend has been that there is one clear market leader in every country. If you look at most western markets, they have one dominant classifieds player. OLX took a conscious call to focus on emerging markets and today OLX is the market leader in 25 emerging markets. OLX, however, claims it is the leader in the consumer-to-consumer (C2C) segment with 80 per cent market share. Quikr follows a mix of business-to-consumer (B2C) and C2C model. A C2C model allows only actual consumers to post ads, whereas on the B2C platform, businesses can transact with consumers. ******************************************************************************** POTENTIAL OF CLASSIFIED MARKET IN INDIA ******************************************************************************** Size of India's online classifieds industry was at Rs 1,800 crore in 2013 Market is expected to grow to Rs 4,500 crore by 2018, a CAGR of 20 per cent. There are Rs 56,200 crore worth of used goods lying idle in just 16 cities. Over $11.7Bn worth of used goods are stocked away in Indian homes, reveals OLX-IMRB Crust Survey A total of Rs 78300 crore used goods are stocked away in Indian homes. Quikr has GMV of a whopping $5 billion a month. ******************************************************************************** HOW CLASSIFIED INDUSTRY WORKS: Example:- QUICKER ******************************************************************************** Quikr kept its platform free for the first three years. When its monthly unique visitors crossed 10 million, it decided to monetise the platform. It charges users and businesses for premium listings, that is, placing their ads higher on Quikr search results Quikr takes Rs 300-Rs 400 for a listing. In comparison, a newspaper ad costs a little higher and has a shorter shelf life. Moreover, they lose out on all-India reach. "So, the cost benefit is strongly in favour of online listing. Quicker still keep most of the website free. Quikr claims to have about one lakh small businesses paying for its service, Has over eight crore active listings on its website. Industry experts says OLX and Quicker just barely scratched the surface of the market. "I believe the market is still 90 per cent virgin. ******************************************************************************** GROWTH:- ******************************************************************************** OLX says its focus on the C2C segment has led to a substantial rise in online traffic. Its page views per month have grown from 10 million in 2011 to about 1.8 billion in February this year. ******************************************************************************** CAMPAIGNS: ******************************************************************************** In early 2013, Quikr introduced a new tagline Bech Daal, which resonated with OLX's popular Bech De campaign. ******************************************************************************** MARKET SHARE OF PLAYERS :- ******************************************************************************** Quikr claimed it had over 3 crore new users every month and was present in 1200 cities in India. OLX claimed to be present in over 40 countries in the world and in India the company says it has 80% market share of the C2C online trade. OLX India now claims 60% market share in online classified Personal used products such as mobiles, computers, electronics, furniture, cars and bikes comprises of 70% of the new ads that are being listed 92% of sellers in these categories are individuals. Mobile traffic for OLX.in has grown from 5% overall traffic in January 2012 to 52% of overall traffic in July 2013. OLX mobile apps have exceeded 3.2 Mn app downloads in India. ******************************************************************************** MARKET SHARE – TWO WHEELER ******************************************************************************** OLX has approximately 75 per cent market share of the online market for pre-owned two-wheelers in India in March 2017 In 2016, OLX registered more than 32 lacs listings of two-wheelers, of which motorcycles form a major share out of which 15.6 lacs were sold. About 75% of the total respondents found a buyer on the platform and three out of five completed their final purchase on the platform under the two wheeler section. Among online buyers of used 2-Wheelers, over 60% completed final purchase via OLX, which is four times higher than the nearest competitor ******************************************************************************** MARKET SHARE – FOUR WHEELER ******************************************************************************** 200,000 vehicles with a value of $1 billion are sold monthly on the site in 2016 as compared to 95,000 cars worth $470 million in 2015 Used cars account for 45% of page views of OLX, as of 2015. As per industry estimates, there are 275,000 used cars sold in India every month. OLX already accounts for 72% market of second-hand four-wheeler vehicles Platform is witnessing a massive 32 lacs annual listings for pre-owned two-wheelers Latest data from OLX shows that the platform is the market leader in the used car space registering over 370,000 listings of used cars per month, out of which 200,000 cars get sold every month. number of cars sold by OLX per month is also bigger than the combined monthly sale of the two largest consumer automobile players in the country. ******************************************************************************** FEATURES:- ******************************************************************************** OLX said in 2015 it would start to sell priority space for premium listings. OLX has Four times higher conversion rates than the competitors OLX says all the content is 100 per cent user generated with no involvement of brokers and merchants. OLX had about 36 lacs active ads as on May 1 2015. Payments between buyer and seller are made offline, so OLX does not have to deal with varying payment infrastructure availability in each of its markets. About 54% of OLX's global traffic, then 240 million unique monthly visits, came from mobile in 2014 OLX said 1.5 billion monthly page views were generated from India in 2014. Morgan Stanley called OLX the "undisputed leader in India" in a 2013 report.