“Affordability has been one of the primary reasons for Indian brands to emerge strongly”

Anisha Dumbre, Market Analyst, Client Devices, IDC India

How do you look at the emergence of Indian brands in the wearable category, especially in 2021? The year 2020 saw a surge in the number of Indian brands entering the wearable market and the trend continues in 2021. Within a short period, these Indian brands had made their mark in the category, capturing a sizable portion of the overall market share. According to the Idc monthly Wearable device Tracker, Oct data release, Indian brands account for 59% of the market in YTD 2021(*Jan-oct’21), up from 41% in 2020. boat has been leading the earwear segment, capturing nearly half of the earwear market, whereas three of the top three companies in the wearable watch category are Indian brands. Together, these brands collectively held a share of 64% (nearly 2/3rd of the market) in 2021Q3.

What factors are driving this surge and giving a tough competition to the foreign players including smartphone brands offering their own wearables? Indian brands have largely displaced most of the brands in this category. In just a few quarters, these brands have been successful to build a recognizable name in the market. Affordability has been one of the primary reasons for these brands to emerge strongly in the category. For instance, these brands were quick to identify the price gap between a fitness band and a smartwatch and launched wearables at affordable price points. Additionally, these brands have been spending heavily on marketing and promotions across online and offline platforms. These brands are also at the forefront of onboarding celebrities for endorsements that help them to connect instantly with the audience. Thirdly, these brands are quick to incorporate consumer feedback into their devices to expand their portfolio rapidly.

How do you look at this development from the innovation point of view? Indian brands have been at the forefront of identifying rapidly changing consumer needs and adapting devices to meet those needs. Furthermore, Indian brands are quick to introduce new devices with new features and designs to the market at affordable price. For example, in the wearable watch category, Fire-boltt expanded its product portfolio to 15 SKUS with new features and new designs in just 5 quarters. recently, Noise partnered with proprietary bragi to enable its devices with bragi’s proprietary OS.

Do Indian brands have the mettle to continue this trend for a long time? How do you look at their prospects in 2022? The wearable category is constantly evolving. However, the coming year is very critical for vendors as every player wants to expand and grow and capture a significant share in the market. Indian brands are constantly exploring new channels to expand their presence, materializing new collaborations, and adding new product categories to expand their business in India. They have evolved in terms of technology and products and have an edge over other brands in the market. However, they lack r&d and the ability to scale their business. Nonetheless, the competition is also building their capabilities around these areas. Hence, it seems that their dominance will sustain for some more years before we see the emergence of strong IOT brands that develop in-house capabilities for better hardware and software and can scale products at entry-level price points.