SpiceJet announces e-commerce venture, eyes Rs150 crore in revenue
SpiceJet’s e-commerce venture SpiceStyle would help in increasing the airline’s ancillary revenue amid intense competition in the domestic aviation sector
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New Delhi: Diversifying into the retail segment, SpiceJet on Tuesday announced setting up of an e-commerce portal which 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% to around 17 % in the last two years,” the airline said in a release.
According to an official, the venture is expected to generate Rs150 crore additional revenue in the first year and increase the overall ancillary revenue to 19% from the present level of 17%. Around Rs15 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, it has tied up with Amazon 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% 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.com,” SpiceJet chairman and managing director Ajay Singh said.
The airline operates 364 average daily flights to 46 destinations, including 7 international ones.