Leading Indian wearable technology companies are ramping up innovation and expanding their retail strategies in response to the first-ever decline in the country’s wearable device market. This comes as the International Data Corporation (IDC) reported a 10 per cent year-on-year drop in shipments for Q2 2024.
Noise, a major player in the Indian market, is focusing on product innovation and strategic positioning to address the challenges. Amit Khatri, Co-Founder of Noise, said, “We view the current market dynamics not as a decline but as a natural phase of maturation and transformation.” The company is maintaining its strong position, with Khatri noting, “In the smartwatch segment, our market share is 25.7 per cent indicating that 1 out of every 4 smartwatches sold in India is a Noise smartwatch.”
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Innovation Boost
To combat “innovation exhaustion” cited in the IDC report, Noise has established Noise Labs, a dedicated research and development arm. Khatri explained, “Our approach to innovation is grounded in understanding consumer needs and ensuring that every product delivers high-quality, essential features.”
Meanwhile, boAt is shifting its focus towards more premium offerings. Sameer Mehta, Co-Founder and CEO of boAt, said, “Going forward, we are looking at a new product strategy where we will focus on innovative smartwatches that offer buyers better experiences, and a greater value.”
Both companies are addressing the challenge of balancing competitive pricing with product quality. Noise is adopting a dual approach, catering to both entry-level and premium segments. Khatri emphasised, “India is not a market driven by mere low prices but by the perceived value of products.”
Retail expansion
To strengthen its offline presence, Noise is expanding its retail footprint. “We are present in close to 20,000 offline stores across India, and this number is continuously growing,” Khatri stated. The company’s sales are currently split 80 per cent online and 20 per cent offline, with a focus on growth in tier 2, 3, and 4 cities.
Despite IDC’s projection of a 10 per cent decline in smartwatch shipments for 2024, companies remain optimistic about the upcoming festival season. Mehta from boAt noted, “Our audio business remains robust, and there is a clear demand for more premium products there. Overall, the audio business is doing well, and the demand is expected to rise in the festive season even more.”
Shipment Decline
The IDC report, released on August 8, 2024, revealed that India’s wearable device market declined by 10 per cent year-on-year to 29.5 million units in Q2 2024. Smartwatch shipments fell by 27.4 per cent to 9.3 million units, while the earwear category remained flat with a 0.7 per cent growth.
Vikas Sharma, Senior Market Analyst at IDC India, suggested that new product launches during the festive season might help arrest the decline. “Several new model launches by incumbent brands are expected during the upcoming festive season which may help in arresting this decline,” Sharma said.
As the market evolves, companies are adapting their strategies, focusing on innovation, premiumization, and expanding offline presence to navigate the challenging landscape and drive future growth in India’s wearable technology sector.