SpiceJet steers into retail space with SpiceStyle
14 June 2017
Low-cost airline Spicejet has entered the highly competitive retail space with SpiceStyle, which would offer fashion and lifestyle brands on its own portal as well as other online marketplaces.
|Ajay Singh, chairman and managing director of SpiceJet|
The company has roped in fashion designer Rohit Bal to run a curated section on its own portal. With this venture, the company would become the first Indian airline brand to sell its own branded merchandise on online marketplaces.
The new ecommerce portal is expected to rake in additional revenues worth Rs150 crore in the first year.
The retail venture SpiceStyle would help in driving up the airline's ancillary revenues amid 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,'' the airline said in a release.
According to an airline official, the venture is expected to generate Rs150 crore of additional revenue in the first year and increase the overall ancillary revenue to 19 per cent from the present level of 17 per cent. Around Rs15 crore has been invested for setting up the venture.
The company has also joined hands with US ecommerce giant Amazon to sell its products on its website. SpiceStyle's entire portfolio of brands will be available on the Amazon's 'Prime' section at special launch prices offering discounts at flat 25 per cent.
With this partnership, SpiceJet plans to open a new revenue stream and enhance its customer reach and engage a wider audience among active online shoppers. SpiceStyle offers products across 17 different categories such as electronics, accessories, jewellery and apparel for men, women and kids. Airline passengers would also be able to order the products during SpiceJet flights.
''SpiceStyle promises to provide customers with the same brand experience as the parent airline enabling them to travel in comfort and style. 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 onboard our flights as well as on SpiceStyle.com,'' Ajay Singh, chairman and managing director of SpiceJet, said.