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.
OLX already accounts for 72% market of second-hand four-wheeler vehicles, but recent data shows that OLX drives approximately 75 percent market share of the online market for pre-owned two-wheelers as well. With regards to the same, the platform is witnessing a massive 3.2+ million annual listings for pre-owned two-wheelers.
Out of every 6 automobiles listed on the platform, three of them are sold within every minute. These vehicles put on sale usually belong to known brands such as Bajaj, Hero Honda, Yamaha, Royal Enfield, and Honda. The vehicles so listed are categorised under Mileage (Less than 150cc), Premium (150 cc- 250cc) and Luxury (Above 250cc) labels having an average listing share of 55%, 35%, and 10% respectively.
The survey analysed over 3,600 respondents face-to-face belonging to key metro cities (both Tier 1 and Tier 2) across the country. The report concluded that OLX has the highest awareness in the pre-owned two-wheelers category, over three times higher than that of its closest competitor. By understanding the market gaps and customer needs, the company offered secured tools and services which led to four times higher conversion rates than the competitors. 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.
By understanding the market gaps and customer needs, the company offered secured tools and services which led to four times higher conversion rates than the competitors, says the survey. 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.
Praising the leadership of OLX, Nandini Kelkar, Research Director, Customer Research Practice, Frost & Sullivan said,
Through our survey it has been confirmed that awareness about OLX among used 2-Wheeler sellers and buyers in India is three times higher compared to its nearest competitor. Among online buyers of used 2-Wheelers, over 60% completed final purchase via OLX, which is four times higher than the nearest competitor according to the survey.
In the year 2016, the classifieds service registered more than 3.2 million users, and 1.56 million products were sold. Moreover, as per industry estimates the used two-wheeler market stands at 12 million units, which means that OLX sells 13 percent of all the used two-wheelers sold in the country annually. On the other hand, the car’s market is estimated at 3.3 million units which hold potential for the service providers.
On establishing a strong foothold in the two-wheeler market, Amarjit Singh Batra, CEO, OLX India said,
OLX pioneered the pre-owned two-wheeler marketplace in India becoming the default destination for selling and buying of motorcycles and scooters in the country. While, one in four pre-owned two-wheelers are listed on OLX, our estimates show that OLX has 75% market share of the online market for pre-owned two-wheelers in India, which signifies our strength in terms of volume and the overall leadership in the space.
Batra further detailed that the coming year should see the company capture an even larger share of the market in the two-wheeler category, especially motorcycles. The industry shows a steady growth of 50% year-on-year on OLX which is the key reason for further expansion.
The traffic for OLX comes from metro markets of Delhi, Mumbai, Bangalore, Chennai, Hyderabad, and Kolkata, resulting in total 52% enquiries. While the other share is dominated by non-metro cities totalling presence of 4k cities for OLX. The survey revealed that an average 130,000 transactions per month are completed on the platform, generating a combined sale value GMV of USD 75 million per month.
Moreover, in terms of brand awareness, the company occupies at least 6 times more market share in the classifieds space than any other website in the market under the Autos and Vehicles category, as per data curated by Google Trends for February 2017.
OLX is present in about 40 countries across the globe and has 80 percent Indian market share of the C2C online trade. The app for the company is currently trending at 3.4 billion page-views a month on the Goole Play store. The platform has proven itself as an excellent brand and was recently recognised by the prestigious ‘Superbrands’ in 2016.