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.
Have a question on this or other technology and innovation topics? Click here to set up a Snippet Call with a Greyhound Research Analyst.
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.
Copyright © 2017 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.
Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only Greyhound Golden Gate (GQube) Councils. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and analysts. Please write to us on email@example.com and we’ll take it further from there!
Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? We have organised all of our insights in a way that allows you to better filter and read what works best for you. To access scores of Free, Freemium and Premium Insights please use the menu above. Please write to us on firstname.lastname@example.org and we’ll gladly share a copy of the research agenda with you.