SpiceJet on Tuesday announced its plans of diversifying into the retail segment, by launcinng an e-commerce portal which is expected to rake in additional revenues worth Rs150 crores in the first year.
The retail venture will be called SpiceStyle would help in driving up the airline’s ancillary revenues amid intense competition in the fast-growing domestic aviation sector. SpiceJet’s ancillary revenue income which has grown from 6% to around 17 % in the last two years.
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.The airline operates 364 average daily flights to 46 destinations, including 7 international ones.