Low-cost carrier SpiceJet Ltd has floated an online venture to sell fashion and lifestyle products, entering a highly competitive segment where even deep-pocketed companies are struggling to turn a profit.
“The problem is that a lot of people try to oversimplify the e-commerce business. It’s not just having a dotcom and opening an e-commerce store,” said Sanchit Vir Gogia, Chief Analyst & CEO, Greyhound Research. “Technology is the least of the worries in this business. The biggest worries are how do you get the customer, how do you get them to trust in you and spend time on the platform increasingly.”
Gogia said SpiceStyle requires a huge amount of investment and highly specialised skill sets. “There is no money in this sector by being a small- or medium-ticket business. You have to play in large volumes. Unless the airline is committed to invest $1 billion, I would worry about the future of any such venture,” he added.
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Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Group. He also serves as Chief Analyst & CEO of Greyhound Research, a Global, Award-Winning, Independent Technology & Innovation Research, Advisory & Consulting firm. To read more about him, click here.
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