Panel SA: People are seeing things sitting at home that can generate income, says OLX

The used car market, which has reasons to get hotter in difficult economic times, when people are looking for cheaper products, has also been feeling the effects of inflation and interest rates.

At OLX, an online buying and selling platform whose flagship is used, with products ranging from building materials to electronics and automobiles, the user base interested in more affordable goods is growing, while the value transacted fluctuates.

“This market grows when the economy grows, because, for example, when many people buy new cars, they sell used ones. On the other hand, it also moves when the economy is in difficult moments. home and see that there are still things that can generate income. They also try to save money, buying used things”, says Andries Oudshoorn, CEO of OLX Brazil.

In the first quarter, according to the company, there were 446 thousand ads inserted per day with R$ 39.5 billion transacted by users in the period, a 20% drop compared to the same period in 2021, which shows an increase in the sale of smaller products. value.

How has the current inflation scenario impacted your business?The model works in any economic scenario. We’ve been in Brazil for years and we’ve been through several crises.

It has an impact on the market. We have a strong presence in the real estate market. Financing is impacted by higher interest rates. We saw an adjustment earlier this year as the market adapted to higher rates.

But it’s also in high demand. There is a shortage of new cars, which generates more used car business.
And there are a lot of people changing their lives. The pandemic brought this moment of change. It is at these times that people need to buy and sell houses, furniture and other things. Change generates more business on our platform, whether when the economy is booming or in tougher times.

Does the used market suffer more in these moments of crisis? Or does he benefit from it?We see the dynamics changing. This market grows when the economy grows, because, for example, when many people buy new cars, they also sell used ones. When they buy new cell phones, they sell used ones. So the good economy also helps.

On the other hand, it also moves when the economy is at its most difficult. People start to look inside the house and see that there are still things that can generate extra income.

They are also looking to save money by buying used things, which are 70% cheaper than new things. People become more aware of this in the most difficult times.

And there’s also that little entrepreneur. Many people start small businesses and use our platform to start selling their products or services online.

Among the categories that are sold through the site, which are the segments that have stood out recently, in the current scenario?During the pandemic, we saw a lot of demand for buying and selling things for home. Things to tidy up the house for the home office and for the kids. This was a moment when we saw a very strong growth in this type of product.

We’ve also seen very strong growth in used cars, with prices going up, because there’s a shortage of new cars all over the world. This helped to boost the sale of used ones.

Can the prospect of measures such as the distribution of benefits in this PEC (proposed amendment to the Constitution) to be voted on in the Chamber heat up trade?It’s something to stimulate the economy in general. We see the possibility of a direct effect on consumption.

Have you been following the discussions on the fight against digital camelódros? How do you deal with this issue of sales taxes on the website?OLX is a consumer site selling used products to another consumer. When it is a non-commercial activity, there is no taxation. If you sell a used product to another consumer, there is no taxation. So, we are not very affected by that.

OLX operates in three major segments: autos, real estate and consumer goods. It also has real estate and dealerships. They are mainly used products sold from one consumer to another.

They can negotiate and meet in person to make the sale. But it also has a new model, with more security, with guaranteed purchase, in which the buyer can pay online and receive the product at home. If it’s not what was advertised, get your money back.

We introduced this in the pandemic, where there was much more demand for distance selling. And she continues.

How is the real estate market this year?In the pandemic, we saw a lot of movement of people looking for another type of property, leaving urban centers. Now, we see a big impact from the increase in interest rates. Especially at the beginning of the year, interest rates rose fast, so transactions slowed down for a while. Now they’re coming back. We have already seen that demand for real estate continues.

X-ray

The executive, who is now the CEO of OLX Brasil, was born in the Netherlands and made a career in markets in Europe, Latin America, Africa and Asia. He was a consultant at McKinsey and Braxton Associates, in addition to stints at other technology companies, with more than a decade of experience in online marketplaces.