Spicejet Jumps Into $600 Billion Retail Market; Will Sell Products Under Their Own Brand Name!
Spicejet, which is currently India’s 4th largest airlines by the number of passengers carried, has had an interesting past. Its founder Ajay Singh created the famous slogan of BJP in 2014 General Elections: ‘Abki Baar modi Sarkaar’; sold his airlines to Maran family, and then again brought back.
And now, its future is going to be even more interesting as they are now foraying into the competitive retail market, aiming for a slice of $600 billion market.
As per insider reports coming in, Spicejet will soon start selling fashion products, electronic gadgets, FMCG products, food and even more; under their own brand name called ‘Spice’.
And there would be no connection or link between the retail arm and their airline’s operations. And if we believe the reports, then Spicejet will also sell their products online, thereby directly competing against leading e-commerce players like Flipkart, Amazon and others.
Spicejet Will Now Become A Retail Player?
The business model of Spicejet’s retail expansion would be hardcore and traditional. They will source products from various vendors and distributors, label them with their own brand name called Spice, and then sell them via retail outlets and online platforms.
Their first stores would open in airports, and would also be sold via in-flight merchandize push.
The reports make it clear that Spicejet won’t transform into a marketplace model like Flipkart or Amazon for selling online, but rather build their own brand and own portfolio from scratch.
One of the officials from Spicejet, said, “This will bring it in direct competition, not only with the online retail aggregators but also with all major retail brands and direct selling companies”
For example, say music players. Spicejet won’t simply create a marketplace where various vendors can sell their music players. But rather, Spicejet will buy music players from these vendors, label them under their brand called ‘Spice’, and then sell it.
Note here, that ‘Spice’ brand name is not yet finalised, and their management team is undergoing finalisation process as you read this. And, there has been no official statement from Spicejet regarding this new retail venture, but reports indicate that a formal announcement would be made within a month.
Spicejet’s Business Dare Continues..
Spicejet was the first airlines to introduce the daring concept of air-tickets at Re 1, way back in 2014. Although DGCA promptly asked them to take down the offer, but the business daring of this airline company can be easily derived from such campaigns.
Later, in 2015, Spicejet was on the verge of closedown with flights cancelled and employees terminated. Even as analysts predicted a state like Kingfisher Airlines for them, they bounced back, and right now, they are 4th largest airlines.
Right from selling and then buying back their airlines to forming slogans for PM Modi, Ajay Singh has been an unconventional entrepreneur. And their recent decision to foray into the competitive retail market just proves it.
We will keep you updated as we receive more information..