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OLX Indonesia Now Focuses on Developing the Car Classified Ad Ecosystem

Having 9000 dealers throughout Indonesia who have joined, claiming a car offer on OLX can be obtained from potential buyers within 30 minutes

In a survey conducted by DailySocial about car buying and selling marketplace, it was revealed that around 96% of respondents who made transactions or searched for information about buying and selling cars had used online channels. This is an attractive opportunity for online channels to expand their market, including the online classifieds service OLX Indonesia.

To DailySocialOLX Indonesia General Manager Olaf Van Schagen said, at the end of 2018, OLX tried to take a horizontal approach in order to help users buy and sell cars online.

"We will not target certain groups, such as specifically for men, women or millennials. Those who need a car and supporting products in it, can take advantage of OLX," said Olaf.

Olaf added, so far OLX has become a trusted platform for car dealers and users who need accurate car buying and selling information. The platform also features a number of features that sellers can take advantage of to promote their business.

C2C Strategy

Currently there are around 9 thousand dealers who have joined the OLX platform throughout Indonesia. Jabodetabek still dominates as the domicile area for registered dealers. Nonetheless, OLX is starting to see other regions starting to show positive growth.

"By implementing the C2C strategy, we see that OLX has increased. For that reason, C2C development will be our focus and in the future. We see opportunities vertically for car sales, and C2C activities will be developed more," said Olaf.

Strategy mobile first and marketing activities

Adjusting to the demographics in Indonesia, which is starting to be dominated by millennials, OLX plans to increase app usage for users.

"Basically OLX is mobilefirstcompany and current usage mobile web and app very close together, but judging by the growth of young users nowadays it certainly is first app," said OLX Indonesia's Head of Marketplace Development & Operations Kamalesh Bathala Chandrasekar.

With its new focus on buying and selling cars and expanding its ecosystem in Indonesia, OLX wants to launch a fairly massive marketing activity with the aim of presenting a complete choice to car sellers and prospective car buyers in Indonesia. One of the marketing activities that will be launched is advertising on television, radio, online advertising, and others.

"Indeed, so far OLX doesn't seem to be doing too much promotion, but currently we plan to carry out marketing activities with a focus on the car buying and selling category," said Olaf.

In addition to the car buying and selling category, OLX noted that other favorite categories are real estate market or buying and selling a house. However, OLX Indonesia does not yet have a focus plan for this category, as has been done in other countries.

If the car category, which is currently the focus, experiences good growth for the company, it is possible that the other categories will also be expanded. This is considered in line with OLX's mission as a classifieds advertising platform in Indonesia.

"With this horizontal concept, we have a target to continue to focus on developing the car category. However, of course we will not forget other categories," said Olaf.

Regarding the speed of the sales process to the verification of sellers registered with OLX, Olaf claims that so far, car sellers and buyers on his platform are quite satisfied with the speed of the sales process offered. Most cars promoted in OLX classifieds can get offers from potential buyers in as little as 30 minutes.

"Of course we can't say how fast the seller can get when promoting his car. But judging from previous experience, our platform can be used," said Olaf.

Management change

After four of OLX Indonesia's C-level ranks resigned last year, now OLX Indonesia is led by Olaf Van Schagen and Kamalesh Bathala Chandrasekar.

Sebagai General Manager, Olaf is in charge of leading the company, while Kamalesh is in charge of user acquisition, user monetization, and make use of data and platform analytics to increase user experience.

This new leadership also changes the vision of the previous leader, but it is claimed that it does not leave the spirit of OLX as a classifieds advertising platform in Indonesia.

"We deliberately left the 'C' position in the company and changed it to General Manager and other positions that are more relevant and easier for OLX," said Olaf.

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