In a strategic move, SpiceJet has ventured into the retail segment setting up an e-commerce portal called SpiceStyle. It is expected to rake in additional revenues worth Rs 150 crore in the very first year.
The retail venture would help the airline in driving up its ancillary revenues in the midst of intense competition in the fast-growing domestic aviation sector.
“The new venture will further boost SpiceJet’s ancillary revenue income which has grown from 6 per cent to around 17 per cent in the last two years,” SpiceJet said in a release.
According to an official of the airline, the venture is expected to generate an additional revenue of Rs 150 crore in the first year and increase the overall ancillary revenue to 19 per cent from the present level of 17 per cent. As much as Rs 15 crore has been invested for setting up the venture.
SpiceStyle, initially conceived as an in-flight service is a wholly-owned subsidiary of SpiceJet and an
e-commerce portal ‘www.spicestyle.com’ has been set up in this regard.
Besides, the airline has tied up with Amazon.in to launch an all new brand store.
The alliance would offer SpiceStyle’s entire portfolio of brands on the shopping portal at the prices offering 25 per cent discount that was during its launch.
SpiceStyle offers products across 17 different categories including a signature Rohit Bal, noted fashion designer, series on Amazon.
“In this new exciting journey, we shall be partnering with leading e-commerce marketplaces to distribute our exclusive range of products, which can also be ordered on-board our flights as well as on SpiceStyle.comm,” SpiceJet CMD Ajay Singh is reported to have said.
The airline operates 364 average daily flights to 46 destinations including 7 international ones.
