SpiceJet sets up retail venture, eyes more ancillary revenues
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 Rs 150 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 official, the venture is expected to generate Rs 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 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, it has tied up with Amazon.in 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.