SpiceJet sets up retail venture; expects more ancillary revenues
Diversifying into the retail segment, SpiceJet has announced the setting up of an e-commerce portal which is expected to rake in additional revenues worth INR 150 crore in the first year. The retail venture SpiceStyle is expected to help in driving up the airline’s ancillary revenues amidst intense competition in the fast-growing domestic aviation sector. “The new venture will further boost SpiceJet’s ancillary revenue income which has grown from six per cent to around 17 per cent in the last two years,” the airline said.
According to an official, the venture is expected to generate INR 150 crore 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 INR 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 spicestyle.com has been set up in this regard.
Besides, it has tied up with Amazon India to launch an all new brand store. The strategic alliance would offer SpiceStyle’s entire portfolio of brands on the shopping portal at launch prices offering 25 per cent discount. 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,” said Ajay Singh, chairman and managing director, SpiceJet.
The airline operates 364 average daily flights to 46 destinations, including seven international ones.